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Add Supplier Return

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Points to Note

Adding a New Supplier Return

Integrating Cost Lines with your accounting software

Residual Values

Example of a residual value

Value only Stock Adjustment

Supplier Return Tutorial Video

The Add Supplier Return page enables you to process a return for the selected purchase order, including purchase orders with added cost lines. 

Points to Note

  • Ensure that the goods being returned are in the same warehouse as they were originally receipted in to. Match your Supplier Return's warehouse to the original Purchase Order's warehouse.
  • Create Supplier Return Reasons specific to your requirements Settings | System | Supplier Return Reasons. By adding reasons such as; Missing Units, Damages, Out of Date etc. to your Supplier Returns you will be able to generate reports and review the success rates of your Purchases and any areas for improvement. For more information, see Supplier Return Reasons.
  • You cannot return more than what has been receipted on your Purchase Order.
  • You cannot return more than what you have on hand.
  • You must include either a quantity or a price per line on the Supplier Return.

Add a Supplier Return

There are two ways in which you can create a Supplier Return:

  1. Go to Purchases | Supplier Returns | Add Supplier Return. In the Purchase Order Number field, enter the purchase order number and the Supplier Return will populate all details based on the original Purchase Order.
  2. In a completed Purchase Order, select the Return button in the top right of the page. A pop-up window will then appear, confirming a Supplier Return is to be created. Once confirmed the Supplier Return will populate all details based on the original Purchase Order.

NOTE: If a Supplier Return has already been created for a Purchase Order a pop-up window will be shown to query whether a new Supplier Return is required or if you would like to review the existing Supplier Return instead. You can create more than one Supplier Return for a Purchase Order, provided there is still stock or value needing to be returned. 

Once the Supplier Return has been created, proceed with the following steps:

  1. Specify the Warehouse the stock is being returned from. Bear in mind the stock will need to be available in the returning warehouse.

  2. Remove any lines that aren't due to be credited or returned, using the bin icon.


    Use the checkboxes and Action Cog on the left of the order lines to delete lines in bulk.

  3. For the remaining lines, update the following fields to align with the return's requirements:
    • Return Quantity: The number of units to be included in the Supplier Return.
    • Return Price: The price per unit being credited to the Supplier.
    • Reason: Select from the drop-down menu the appropriate reason for why the quantity and/or price is being returned. For more details, see Supplier Return Reasons.
    • Return: If the stock on hand is due to be returned to the Supplier, tick the checkbox. If only the price is to be credited to the Supplier, leave the checkbox unticked. You must select the Return checkbox ONLY if you have specified a value in the Return Quantity field. 
      Use the checkboxes and Action Cog on the left of the order lines to update the Return checkboxes in bulk.
      NOTE: You must return either quantity or price.

  4. Review the Cost Lines and amend as necessary to align with your return's requirements:
    • Cost: The Cost value will be the value that's being deducted from your stock's value.
      • If you have amended the Cost value, the Return Cost in the Supplier Return's lines will automatically recalculate to align with the new total cost.
      • If the Return Cost is amended manually, per line, select the Recalculate Supplier Return Costs icon to recalculate the total Cost based on the sum of all Return Costs.
        NOTE: Return Costs must be advised in your account's base currency. The Cost in Cost Lines will be recalculated in relation to the Supplier's currency 
    • Refund: Select the Refund option if a credit is due from the Supplier for the given cost.
    • Write-off: Select the Write-off option if a credit is not due from the Supplier but the cost is being retained as an expense. 

  5. Once all lines and costs are updated on the Supplier Return, click Complete. 

At the bottom of a Supplier Return, you have the following button options available:

  • View Email Log: Click to display a log of all emails sent for the current Supplier Return. The button will update to "Hide Email Log", which will hide the email log once clicked. For more details, see Email Logs.
  • Print: Click to download a PDF of your Supplier Return, which will be generated using the selected Doc Designer Template. 
  • Email: Click to send your Supplier Return via email to the appropriate Supplier contact. For more details, see Company: Email Templates
  • Delete: Whilst a Supplier Return is in Parked status, you have the opportunity to delete it if it's no longer required. Once a Supplier Return is deleted, it cannot be further edited or progressed. Completed Supplier Returns cannot be deleted. 

Integrating Cost Lines with your accounting software

Cost Line selection What exports Xero QuickBooks
Refund
Same Supplier for PO and Costs		 A Supplier Return for the PO and Costs A journal to remove the total value from Stock on Hand account. A journal to remove the total value from Stock on Hand account
Refund
 Supplier PO differs from Cost Lines' Supplier
  • A Supplier Return for the PO
  • A Supplier Return for the Costs

Two journals (one for each Supplier's return) to remove the matching value from Stock on Hand account.

Go to Xero | Export data | Supplier Return Costs

Two journals (one for each Supplier's return) to remove the matching value from Stock on Hand account.

Go to Quickbooks | Export data | Type: Supplier Return Costs
Write-off
  • A Supplier Return for the PO
  • A Supplier Return for the Costs

Multiple journals:

  • A journal to remove the price value from Stock on Hand account.
  • A write-off journal to increase the expense account. 

Go to Xero | Export data | Journal | Supplier Return Journal

Multiple journals:

  • A journal to remove the price value from Stock on Hand account.
  • A write-off journal to increase the expense account. 

Go to Quickbooks| Export data | Journal | Type: Supplier Return Journal

Residual Values

If you're processing a Supplier Return and there's either not enough stock value on hand to complete the return or if there is stock value remaining but no stock on hand to attribute it to, this is known as a Residual Value. By design, Unleashed cannot allocate a negative stock value to a product nor allocate stock value to a product that currently has no stock on hand, therefore would return an error against your Supplier Return when trying to complete. 

For more details, see What is a residual value?

Example of a residual value

You have 1 unit of a product on hand with an average landed cost of $105 (it's total stock value is therefore $105). The remaining unit is due to be returned, but was originally purchased at $100. The Supplier Return can only return up to the original purchase price of $100, if the Supplier Return were to be completed, when the 1 unit of stock is removed from inventory the product's remaining value is calculated as $105 - $100 = $5, thus there's $5 value against 0 stock on hand, which is a residual value.

To resolve a residual value error, you can either:

  • Edit the Supplier Return's Quantity or Price to align with the product's inventory.
  • Complete a value only Stock Adjustment.

Value only Stock Adjustment

A value only stock adjustment allows you to update a product's stock value (and it's average landed costs) without adjusting it's stock on hand quantity. This enables to you process transactions like Supplier Returns whilst maintaining accurate inventory quantities.

To complete a value only stock adjustment, follow the below steps:

  1. Go to Inventory | Transactions | Stock Adjustment | Add Adjustment.
  2. In the Product field, find the product requiring adjustment
  3. In the Quantity field, enter 0
  4. In the Value field, enter the total value needing to be adjusted for your total stock on hand. 
    Using the example above, the Value field would be given as 5 (the residual value).
  5. Select Add, you'll then be shown a summary of the changes that'll be made to your stock value based on the adjustment.
  6. Select Complete to apply the update to your inventory. From here, your product's average landed cost will be calculated to align with the new total stock value.

For more details, see How to conduct a value-only Stock Adjustment.

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