Purchasing & Inbound LogisticsOptional Module

Vendor Returns

1. Overview & Purpose

What are Vendor Returns?

Vendor Returns manages reverse procurement logistics for rejected, defective, or oversupplied inventory returned to suppliers. Posting a return triggers OUTBOUND stock movements and generates debit memos against vendor balances.

Menu Location:Purchase > Purchase Returns

2. When to Use Vendor Returns

Post-Intake Substandard Quality Discovery (RMA Defect)

Goods unpacked after delivery fail secondary quality control testing (e.g. broken seals or uncarbonated beverages), requiring formal return to the vendor.

Recommended Action:Create a Purchase Return referencing the verified Goods Receipt, specify damaged lot counts, and record the supplier RMA (Return Authorization) tracking code.

Unordered Overshipment Rejection & Warehouse Eviction

Supplier delivers 150 units on a strict 100-unit contract; the procurement director rejects purchasing the 50 surplus units occupying valuable pallet space.

Recommended Action:Issue a return manifest for the 50 surplus units to dispatch them back on the supplier transport vehicle and clear warehouse floor congestion.

Outbound Gate Pass & Carrier Shipping Authorization

Security guards at the warehouse gate require formal signed documentation before permitting a supplier truck to exit with company-owned merchandise.

Recommended Action:Print the official Purchase Return manifest and Warehouse Exit Gate Pass, mandating signatures from the warehouse manager and carrier driver.

Automatic Stock Deduction & Accounts Payable Credit Claim

Processing the return must immediately reduce digital warehouse inventory while generating the financial reference needed to reduce vendor debt.

Recommended Action:Click Submit & Post on the return; the ERP generates OUTBOUND stock movements reducing on-hand balance, while creating an open claim for Supplier Credit Note issuance.

Supplier Replacement Goods Exchange (Zero-Cost Intake)

Supplier agrees to send 20 identical replacement units free of charge instead of issuing an invoice cash credit.

Recommended Action:Track the return document ID as the authorization reference for incoming replacement Goods Receipts, balancing inventory without altering Accounts Payable.

3. Data Dictionary & Fields

Schema structure for the purchase_returns reverse logistics table:

Field / Column	Input Type	Requirement	Description & Operational Guide
returnNumber	STRING(50)	Required	System-generated unique return document code (e.g. PR-20260522-001).
purchaseOrderId	BIGINT (FK)	Required	Reference to originating purchase order defining original unit costs.
goodsReceiptId	BIGINT (FK)	Required	Reference to specific intake goods receipt being returned.
supplierId	BIGINT (FK)	Required	Vendor receiving returned merchandise.
branchId	BIGINT (FK)	Required	Branch warehouse dispatching return shipment.
locationId	BIGINT (FK)	Required	Storage room where returned inventory is decremented.
returnDate	DATE	Required	Date return was packed and physically dispatched.
totalReturnAmount	DECIMAL(18,4)	Required	Total monetary value of returned goods claimed from vendor.
reason	TEXT	Required	Formal explanation of defect, damage, or commercial return grounds.
status	ENUM	Required	State: DRAFT, PENDING, SUBMITTED, APPROVED, POSTED, CANCELLED, REVERSED.

4. Interface Preview

Vendor Returns screen displaying return tickets, defective item summaries, return reasons, and outbound gate pass statuses.

inventories-web

Menu Location:Route: /admin/purchase/purchase-returns

Screen Preview: Purchase Returns Console Interface

Visual interface illustration and control layout for menu Route: /admin/purchase/purchase-returns

1Add Purchase Return2Goods Receipt Auto-fill3Defect Reason Description4Post Outbound Stock

Vendor Returns console showing return document codes, Goods Receipt cross-links, defect classifications, and inventory reduction statuses.

5. Initiating Vendor Returns

Open Vendor Returns Console

Navigate to Purchase > Purchase Returns from sidebar.

Select Originating Goods Receipt

Click Add Purchase Return and pick corresponding Goods Receipt.

Select Returned Items & Quantities

Specify exact return quantities and choose condition classifications.

Document Return Reason

Enter defect details, inspection ticket IDs, and attach damage photos.

Submit for Manager Approval

Click Submit to route return for logistics supervisor sign-off.

6. Dispatch & Gate Pass

Logistics Sign-Off

Supervisor inspects physical outbound pallet and signs shipping pass.

Post Outbound Stock Movement

Click Post. The system immediately decrements storage balance.

7. Credit Claims & Closure

Automatic Downstream Link

Once a vendor return is posted and physically dispatched, you can click Create Credit Note directly from the detail view to generate the corresponding Accounts Payable reduction.

Cancel Unposted Return

Draft returns can be cancelled if vendor agrees to a price discount instead of physical return.

8. Cross-Module Impact

Target Subsystem	Relational & Transactional Effect
Inventories & Stock Balances	Triggers OUTBOUND stock movement with PURCHASE_RETURN type, reducing warehouse balance.
Supplier Credit & Debit Notes	Serves as mandatory parent reference for issuing Supplier Credit Notes.
Accounts Payable & Invoices	Offsets outstanding purchase invoice balances or provides vendor deposit credits.

Operational Best Practices

Always mandate supplier RMA (Return Merchandise Authorization) number in return notes.
Pack returned goods with original pallet tags to expedite supplier credit note issuance.