Understand the Returns Tab in Inventory

By clicking on the Inventory > Returns tabs, you will get a list of all returns. To process returns, use the Generate Returns button to generate purchases. Then, use the Receive Credits button when you want to process return purchases.

Generate Returns

The Generate Returns feature is used to record when goods are sent back to a supplier or vendor. It is typically used when items need to be returned due to defects, incorrect orders, or other issues. This function creates a return transaction, often linked to the original purchase invoice or bill, allowing the system to properly track the return process.

When a return is generated, the returned items are removed from inventory because they are no longer in stock. At this stage, the transaction mainly records the movement of goods and may not immediately create a financial adjustment, or it may only create a provisional one. For example, if you send back 10 defective brake pads to your supplier, the system will register the return and reduce the inventory accordingly.

By clicking on Generate Returns, on the next page, choose the returns for which you wish to generate credits and click on Generate Returns.

Receive Credits for Returns

The Receive Credits for Returns feature is used to record the credit issued by a supplier after they have accepted returned goods. This step usually occurs once the supplier confirms the return and provides a credit note or refund. The system then creates a supplier credit or credit note associated with the original transaction.

This action produces the actual financial adjustment, as the credit reduces the amount you owe to the supplier or results in a refund. In most cases, there is no inventory change at this stage because the inventory was already adjusted when the return was generated. For example, if the supplier sends a $200 credit note for the returned brake pads, the system records the credit and reduces the accounts payable accordingly.

In GEM-CAR, by clicking on Receive Credits, on the next page, choose the credits that have been received in order to process purchases related to them and click on Receive Credits.

By clicking on +Add, you can create a new return by entering the following information:

• Product;
• Supplier;
• Type;
• Quantity;
• Amount;
• Note(s).

Click on Save.