Returns to suppliers are processed in Purchase Order Returns (5.13.7). The purchase order does not have to be open but must exist in the database for a return to be processed. The return transaction reverses the inventory and GL effects of the receipt, if any, and can optionally reopen the PO or PO line.

If the purchase return transaction is checked Return to Replace, a line item for the replacement quantity is opened. If the return to replace box is left unchecked the system reverses the receipt transactions.

In Purchase Receipt Inquiry (5.13.3), returns are indicated with an “R” and a negative quantity

The calculations and GL entries for PO returns are listed below.