The quick answer
A purchase return moves goods back to a supplier and changes what you owe or what the supplier owes you. The stock movement, commercial credit and cash refund are connected but are not the same event.
Begin with the original purchase and the supplier’s agreed return terms. Dukanam purchase-return features depend on your plan. Confirm tax treatment with your accountant and preserve the supplier credit document.
Before you begin
- Original purchase and receipt details.
- Supplier approval, returned quantities and reason.
- Credit note or refund evidence when received.
See how the pieces connect
Agree
Confirm eligible goods and return terms.
Dispatch
Record and evidence the returned quantity.
Credit
Match the supplier adjustment to the purchase.
Settle
Reconcile the balance or refund.
Work through the steps
Confirm the goods and reason
Identify the item, batch where relevant, quantity and condition. Check whether the supplier allows return, replacement or only a price adjustment. A damaged unit needs a clear reason and evidence.
Obtain agreement
Confirm how freight, tax and restocking charges will be handled. Keep approval from the supplier. Do not assume the full invoice value will be refunded when terms specify a deduction.
Record the stock return
Use the supported return workflow linked to the purchase when available. Count goods at dispatch and retain acknowledgement. A price-only adjustment should not remove goods that remain in the shop.
Match the supplier credit
Check the supplier’s document against the agreed quantity and value. Refer unresolved tax changes to your accountant. Avoid entering a negative purchase and a separate return for the same event.
Apply the financial adjustment
Reduce an unpaid supplier balance or record the amount receivable if the purchase was already paid. If the supplier replaces goods, document receipt separately so the movement is traceable.
Reconcile settlement
Allocate a refund or credit against the correct record when actually received or agreed. Review outstanding return credits at month end. Preserve the original purchase and the complete adjustment trail.
A worked example
A return reduces an unpaid balance
Simplified commercial example; tax and charges require separate review.
| Entry | Value |
|---|---|
| Original unpaid purchase | ₹5,000 |
| Accepted return credit | ₹1,000 |
| Remaining payable | ₹4,000 |
₹5,000 − ₹1,000 = ₹4,000 payable. A later ₹4,000 payment settles that balance; do not also record the ₹1,000 credit as cash received.
Common mistakes to avoid
- Removing goods before the return is confirmed.
- Treating a credit note as a bank refund.
- Duplicating the same adjustment in several workflows.
- Ignoring freight or restocking deductions.
Questions you might have
What if the supplier gives replacement goods?
Document the return and replacement receipt distinctly, then reconcile quantities and the agreed financial treatment.
Can I delete the original purchase?
Preserve the original transaction and use the supported correction or return process so the history remains understandable.
Dukanam
A smart, low-cost choice for small-business GST billing
Dukanam brings billing, purchases, stock, customer balances, payments and reports together. It is built for Indian small businesses that want clear records without a complicated setup.
Best suited to shops that want connected everyday billing and bookkeeping, web and mobile access, and nine product languages. Choose the plan that includes the features you need.
GST-aware billing and preparation depend on your plan. Review records before filing on the GST portal; Dukanam does not directly submit GST returns, government e-invoices or e-way bills.
Current plans with GST preparation
- Advanced Plan₹299.00 per month
Check annual prices, limits, applicable taxes and checkout terms. Paid plans do not include a free trial.
Sources and further reading
Official rules and portal screens can change. Use the linked authority for the current requirements; the figures in our worked examples are illustrative.