Posting a Purchase Return Order

When you post a purchase return order, you have the possibility of separating the quantity and the value parts of the transaction. That is, you can post the purchase return order as shipped, thus updating inventory availability and creating a posted purchase return shipment. Then, at a later time, you can invoice the purchase return order, thus updating inventory valuation and creating a posted purchase credit memo.

This flexibility addresses a division of labor that is common in many companies where the warehouse handles the shipping and receiving of goods, and the accounting department is responsible for invoicing the items.

At this point, you have created the purchase return order and shipped the item back to the vendor.

To Post a Purchase Return Order:

  1. From the Purchase Return Order window, click Posting, Post.
    The posting dialogue box appears, offering you the choice to post as shipped, invoiced or both shipped and invoiced.

  2. Depending on your company-specific policy, you can select either the Ship field or Ship and Invoice field. Then click OK.

  3. If you select the Ship field and then post, the program creates a posted purchase return shipment. The employee who is responsible for invoicing can then see which purchase return orders need to be invoiced by creating a purchase credit memo and then using the Get Return Shipment Lines function.


It is advisable to wait until the vendor has inspected and approved the returned item before posting it as shipped. In this way, if the vendor rejects the item under inspection, you can simply delete the purchase return order afterwards.

If, however, you have posted the purchase return order as shipped, and the vendor subsequently inspects and rejects the item, you can handle this by invoicing the order and then issuing a corrective purchase invoice.

Related Topics

Creating a Purchase Return Order

Creating a Corrective Purchase Invoice

Getting Return Shipment Lines from Return Orders