Creating Purchase Returns in Empress for Efficient Inventory Management

Guides & Tutorials
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Introduction

In this guide, we will focus on the Purchase Return feature available in Empress, a vital tool for managing and tracking items returned to suppliers. For businesses, understanding how to handle purchase returns effectively is crucial. It helps maintain accurate inventory and financial records, fostering seamless operations and efficient accounting procedures.

Understanding Purchase Returns

A purchase return involves returning items previously purchased from a supplier. This could be due to defects in the goods, a mismatch in quality, or simply because the items are no longer needed.

What You Need

Before proceeding with a purchase return in Empress, ensure you have the following:

  • Item: The specific product or service you’re intending to return.
  • Purchase Invoice/Purchase Receipt: The original documents showing the details of the items purchased.

How to Create a Purchase Return

To create a Purchase Return, follow these straightforward steps:

  1. Open the original Purchase Receipt that lists the items delivered by the supplier.

  2. Click on ‘Create > Return’. A new Purchase Receipt will open, marked with ‘Is Return’. You’ll notice that the items, rate, and taxes are now displayed as negative values.

  3. Once you submit the Return Purchase Receipt, the system will deduct the item quantity from the selected warehouse. To keep the stock valuation accurate, the stock balance will increase, mirroring the original purchase rate of the returned items.

  4. In the Accounting Ledger, you’ll see the ‘Stock In Hand’ account credited, while the ‘Stock Received but Not Billed’ account is debited.

If you’ve enabled Perpetual Inventory, the system will also update the warehouse account balance to match the stock balance as per the Stock Ledger.

The Impact of a Purchase Return

When a Purchase Return is created against a Purchase Receipt, a few things happen:

  • The Returned Quantity in the original Purchase Receipt, and any associated Purchase Order, is updated.
  • If all items are returned, the status of the original Purchase Receipt changes to Return Issued.

Conclusion

This guide provided a comprehensive overview of the Purchase Return feature in Empress, putting emphasis on its significant role in business operations. By effectively managing purchase returns, your business can maintain a tidy inventory and accurate accounting records. If you need further assistance, please refer to Empress’ support resources or contact our dedicated support team.