Manage Returns to Suppliers

Returning raw materials to suppliers is essential for addressing defects, overstocking, or quality issues. The CGIC App allows you to process returns while maintaining accurate inventory records and supplier accountability. This guide covers two methods: Stock Entry and Purchase Receipt reversal.

Prerequisites

1. Original Purchase Receipt: Ensure the raw material was received via a Purchase Receipt.
2. Warehouse Setup: Verify the raw material exists in a warehouse (e.g., Stores).

Method 1: Return via Stock Entry

Use this method for direct returns without linking to the original Purchase Receipt.

1. Create a Stock Entry:
   • Navigate to Stock > Stock Transactions > Stock Entry > New.
   • Set Purpose to Material Issue or Material Transfer.
   • Under Items:
     • Item: Select the raw material to return.
     • Quantity: Enter the return quantity (negative value if allowed).
     • Source Warehouse: Select the warehouse where the material is stored.
     • Target Warehouse: Optional – Use a virtual warehouse like Supplier Returns if configured.
     • Batch/Serial No: Assign if tracked.
   • Add comments (e.g., “Return to Supplier – Defective Batch”).
   • Submit to deduct stock.

Method 2: Reverse Purchase Receipt

Use this to link the return directly to the original receipt for better traceability.

1. Create a Return Purchase Receipt:
   • Navigate to Stock > Stock Transactions > Purchase Receipt > New.
   • Select the Supplier and raw material Item.
   • Enter a negative quantity (e.g., -100) to reverse the original transaction.
   • Under Items:
     • Warehouse: Select the source warehouse.
     • Batch/Serial No: Match the batch from the original receipt.
   • Submit to reverse stock levels and create a return record.