Purchase Return Order

The purchase return order is the central document and entry point of the returns process. Here, you can register the entire compensation agreement with your vendor. You can enter and maintain information related to the vendor, the method of compensation and the items in question. You can also create other returns-related documents and move lines between them.

There are various ways to claim compensation from a vendor, and you can initiate all of the procedures from the purchase return order. Note that most of the procedures can be carried out in several ways by using different documents or combinations of them.

The purchase return order lines (of the item type) represent items that you are returning, and posting them will affect your item availability and inventory value. A typical example of a purchase return transaction is simplified below:


Your vendor mistakenly shipped the wrong item (1960-S) to you. You agree with your vendor to return the item to them, and they will replace it with the right item (1964-S). The first example shows the lines of a purchase return order. The second one shows the same transaction using the purchase order instead.

Purchase return order/purchase credit memo:
Item 1960-S Quantity 1 (return)
Item 1964-S Quantity -1 (replacement)

Purchase order/purchase invoice
Item 1960-S Quantity -1 (return)
Item 1964-S Quantity 1 (replacement)