Supplier Returns

A supplier return (RTV, return to vendor) sends goods you received back to the supplier. Kassly takes the stock out, keeps your product cost honest, and records that the supplier now owes you for what went back.

Supplier returns need the Inventory Pro add-on, the same one that carries purchase orders and receiving.

Starting a return

Every return goes against one purchase order. Open the PO, find the Returns to supplier card below the receipts, and choose Return items.

The form lists each delivery (GRN) on the PO with what it brought in and what can still go back. For each line you want to return:

Field	Notes
Quantity to return	Up to what arrived on that delivery, less anything already returned or waiting for approval.
Lot going back	Shown only when the delivery had a batch number or expiry date. It starts on the lot the goods arrived as.

Then pick a reason (damaged, expired, wrong item, quality issue, over-delivery, received in error, other) and add a note if it helps.

Return freight

If sending the goods back costs you a delivery fee, enter it as Return freight and choose who pays the freight:

Choice	What happens when the return is completed
Our expense (the default)	An approved Transportation expense, in your operating expenses like any other
Charge to supplier	The freight is added to the supplier's credit, because you paid it on their behalf. It is not an operating expense.

Freight can be set or changed while the return is a draft, on the return's page or in the Return items form. Only people who can see cost prices see and enter it. Either way the freight is recorded as paid outside the register.

Returns work on partly received POs too. Finding damaged cases after the first of two deliveries is the ordinary case.

The goods leave from where the PO delivered them: its branch, or its warehouse.

Bins. When that warehouse tracks stock by bin, each line of the Return items form has a Take from bin choice. Pick the bin the goods are in and they leave from that bin; leave it on automatic and Kassly takes unassigned stock first, then bins in code order, as for any other removal. The bin must be in that warehouse. If the bin holds less than the line sends back when the return is completed, completing stops with a message — move the stock or pick another bin. A bin deleted after the return was drafted falls back to automatic.

Who does what

Step	Who
Start, edit or send a return for approval	Anyone who can receive stock, or a PO manager
Complete a return straight away	A PO manager (Owner, Manager, or a custom role with Create / Submit / Cancel Purchase Orders)
Approve a return sent for approval	A PO manager, from Approvals or the return's page

The person on the dock can raise a return without seeing any cost prices. Money figures (unit cost, line totals, the credit) appear only to people who can see cost prices.

The approval rules are the same as for other money decisions: nobody approves their own return, and a return a Manager sends for approval goes to the Owner.

While a return waits for approval

Send for approval holds the stock: the quantities are reserved at the branch (or allocated at the warehouse), so a transfer or another return cannot take them.

The POS still sells. Sales never stop at held stock, so a busy counter can sell into it. When the return is approved, Kassly checks what is really there. If a sale took some of it, approval stops with a message like:

Only 6 pc of Flour is available at Main Branch, but this return sends back 10 pc. Stock was sold or moved since the return was submitted. Count the stock or reduce the return.

Ask for changes on the approval, lower the quantity, and send it again.

Rejecting a return, asking for changes, or cancelling it releases the held stock. Nothing moves until a return is completed.

When a return is completed

Completing a return, directly or by approving it:

• takes the goods out of stock with a Supplier Return movement, at what they cost when they arrived. The lot you chose is the one drawn down, and it drops off expiry alerts when it is gone;
• adjusts product cost if you use automatic (moving average) costing: the returned units leave at their receipt cost, so the average of what stays is the same as if they had never arrived. Under manual costing the cost stays as you set it and the return is noted in the product's cost history;
• issues a supplier credit, our debit memo, numbered DM-000001, for the value of the goods (plus the freight, if you charged it to the supplier);
• records the return freight, if any, as an approved expense.

A return never changes the purchase order's status or its received quantities. The PO's items show how much of each line went back.

Print the completed return with Print debit memo to hand the supplier.

Supplier credits

A supplier credit is money the supplier owes you. It is not a negative expense and it does not show on your P&L as an expense.

If the PO was still open (submitted or partly received) when you completed the return, the credit is set against that PO. When the PO is fully received or closed short, its payment is the received value less the credit. If the credit is larger than what the PO ends up owing, the extra goes back to the credit's balance.

If the PO was already received or closed, the credit stays open on the supplier. Settle it from the return's page or Inventory > Supplier Credits: record a refund, apply it to another of the supplier's open orders, or write it off. See Supplier credits.

What lands in your books

A completed return books DR Accounts Payable / CR Merchandise Inventory at the goods' receipt cost:

• on a received or closed PO, dated when the return was completed;
• on a PO still open at the time, dated when the PO is finalised, together with the receipt. Neither shows in your books before then.

For an open PO, payables net to zero on the day it is finalised: the PO adds the received value, the return takes the returned goods off, and the payment is the rest. For a PO already paid, payables show what the supplier owes you until the credit is settled.

Return freight you keep as your own expense books DR Operating Expenses / CR Cash. Freight charged to the supplier books DR Accounts Payable / CR Cash: it adds to what they owe you, and settling the credit clears it.

In reports, a return is not consumption: Stock Consumption and stock turnover leave it out, and Purchases by supplier takes the returned value off on the day the return was completed.

Where to go next

• Supplier credits: refunds, applying a credit to another order, write-offs
• Receiving purchase orders: the receipts a return points at
• Purchase orders: raising and closing orders
• Batch and expiry: how lots are drawn down