Create Purchase Return

You can create Purchase Returns in Zoho ERP to record items returned to your vendors after a purchase. This helps you update inventory levels, adjust vendor balances, and ensure your accounts payable and financial reports remain accurate.

To create a purchase return

Go to Purchases on the left sidebar.
Click Purchase Orders in the top Module bar.
Select Purchase Returns from the dropdown.
Click +New in the top right corner.
Enter the required details,

Field	Description
Vendor Name	Select the vendor from whom you are returning the purchase.
Location	Select the location where the purchase return is recorded.
VRA#	Automatically generated Purchase Return number. You can change your preference: * Click the Gear icon in the text box. * Choose one of the following options: * Continue auto-generating Purchase Return numbers – Purchase Return numbers will be generated automatically based on the configured prefix and starting number. * Enter Purchase Return numbers manually – Enter the Purchase Return number manually each time during Purchase Return creation. * Once done, click Save.
Date	Enter the date of the Purchase Return.
Reason	Provide the reason for returning the purchase.
Reference Number	Enter any related purchase or invoice number for reference.

Enter the items and its quantity that you wish to return to the selected vendor.
To add more than one item, click +Add New Row.
Click Save.

Note: Once you mark a purchase return as Confirmed, the committed stock of the items will be reduced.

Create Transactions From Purchase Returns

Create Transactions from Purchase Return allows you to generate related records such as picklists, packages, shipments, and vendor credits directly from a purchase return. This helps streamline return processing while keeping inventory and accounting data in sync.

Create Picklist

You can create a picklist from a confirmed purchase return to pick the returned items from bins before processing the return.

To create picklist,

Go to Purchases on the left sidebar.
Click Purchase Orders in the top module bar.
Select Purchase Returns from the dropdown.
Open a Confirmed purchase return transaction.
In the details page, click the Create dropdown.
Select Picklist. You will be redirected to the picklist creation page, where the relevant details are prepopulated automatically.

Create Package

You can create a package from a purchase return in Draft or Confirmed status to pack the items that are being returned to the vendor.

To do this,

Go to Purchases on the left sidebar.
Click Purchase Orders in the top module bar.
Select Purchase Returns from the dropdown.
Open a Confirmed purchase return transaction.
In the details page, click the Create dropdown.
Select Package. You will be redirected to the package creation page, with the relevant details prepopulated automatically.

Create Shipment

You can create a shipment from a purchase return in Draft or Confirmed status to ship the returned items back to the vendor.

To do this,

Go to Purchases on the left sidebar.
Click Purchase Orders in the top module bar.
Select Purchase Returns from the dropdown.
Open a Confirmed purchase return transaction.
In the details page, click the Create dropdown.
Select Shipment. You will be redirected to the shipment creation page, where the relevant details are prepopulated automatically.

Create Vendor Credits

You can create a vendor credit directly from a purchase return to account for the value of the returned items. This helps adjust the vendor’s payable balance and ensures your accounting records remain accurate. The vendor credit is automatically prepopulated with details from the purchase return, reducing manual entry and maintaining consistency between inventory and accounting records.

To create vendor credit,

Go to Purchases on the left sidebar.
Click Purchase Orders in the top Module bar.
Select Purchase Returns from the dropdown.
Choose the confirmed status purchase return transaction.
In the details page, click Create Vendor Credits in the top section.
You will be re-directed to vendor credits creation page.