Return goods to a supplier

Purchase returns are “Goods sent back to suppliers, with the debit note each one raised.” Start from the receipt the goods came in on, so Kila knows the supplier and the price.

At Baraka Wines and Spirits, two cases of Kingsgate Blended Whisky 750ml came to the Baba Dogo store. At inspection, two bottles had broken seals and were marked damaged. Beatrice Wanza, the storekeeper, sends them back.

Steps

1. Open the receipt and tap Return to supplier

   Under Purchasing › Receiving, open the receipt. “Stock leaves the branch now. The return is your debit note: it reduces what you owe the supplier, with VAT, once they have invoiced.” The Supplier and From branch come from the receipt, and Whose stock is Owned stock (raises a debit note).

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   Steps 2 to 5 on one screen.

   

2. Say why

   Under Reason, such as “Seals broken on 2 bottles. Highland Spirits will credit them.”

3. Type how many go back

   “Enter the quantity going back on each line; lines left at zero stay.” The Credit price before VAT starts at the price they came in at.

4. Choose where they are taken from

   Under Taken from: Sellable stock, Quarantine or Damaged stock. Kila shows the Debit note about amount, including VAT.

5. Tap Record return

   Kila shows:

   PR-000014 recorded

   PR-000014 recorded. Debit note for KES 2,880.00 reverses goods received not invoiced.

   The goods leave the store’s stock, and the receipt lists the return. Under Purchasing › Returns it says Sent back until the supplier’s credit note comes.

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   Step 6.

   

6. When the credit note comes, tap Credit received

   Whoever records supplier invoices, such as Daniel Mwita, the accountant, opens Purchasing › Returns and taps Credit received on the return.

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   Steps 7 and 8 on one screen.

   

7. Type the supplier's credit note number

   Under Supplier’s credit note number.

8. Tap Record credit note

   Kila says Credit note recorded: “PR-000014 is settled.” The return now says Credited.

What if

The goods did not come on a receipt

Tap New return under Purchasing › Returns, then choose the supplier, the branch and the products yourself.

The supplier has already invoiced the goods

Then the debit note comes off the invoice that billed the goods, with VAT, and Kila says so as it records the return, such as “Debit note for KES 3,340.80 comes off invoice HSK-INV-31010, leaving KES 16,704.00 to pay on it.” A debit note that covers the whole invoice settles it: ”…, which is now settled.” The invoice lists the debit note under Payment, and paying the invoice, by hand or in a payment run, pays only what is left.

A return started with New return, not from a receipt, is not tied to one invoice: it reduces what you owe the supplier.

Good to know

To follow what each supplier still owes you for returns until it is settled, see Supplier returns and warranty.

Related

• Receive a delivery: reject goods at the door instead of returning them later.
• Record a supplier invoice: what the debit note comes off.

Next: Take stock on consignment.