## Zoho Inventory Documentation Index

Access the complete documentation index at:
https://www.zoho.com/om/inventory/llms.txt

Use this file to discover all available documentation pages before proceeding.

# Enable Purchase Returns

Enable the Purchase Returns module to allow creating and managing returns for items purchased from vendors. Once enabled, you can initiate purchase returns for damaged, defective, or excess items, track vendor credits, create shipments and packages for returning goods, and record refunds from vendors

To enable the Purchase Returns module,

*   Go to **Settings** in the top right corner.
*   Navigate to _Organization Settings_.
*   Click **General** under _Setup and Configurations_.
*   Enable **Purchase Returns** under _Select the modules you would like to enable_.
*   Click **Save**.

# Create Purchase Return

Purchase Returns in Zoho Inventory help you record items returned to vendors after a purchase, enabling accurate inventory tracking, updated vendor balances, and reliable financial records.

To create a purchase return:

*   Go to **Purchase Returns** under _Purchases_ in the left sidebar.
*   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 **Purchase Returns** under _Purchases_ in the left sidebar.
*   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 Picklist from Purchase Return](/inventory/help/images/purchase-returns/create-picklist.png)

### 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 **Purchase Returns** under _Purchases_ in the left sidebar.
*   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 **Purchase Returns** under _Purchases_ in the left sidebar.
*   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 **Purchase Returns** under _Purchases_ in the left sidebar.
*   Choose the confirmed status purchase return transaction.
*   In the details page, click the **Create** dropdown.
*   Select **Vendor Credit**. You will be re-directed to vendor credit creation page.

## Create Purchase Return From Purchase Orders

You can create a purchase return from the purchase order module once the purchase order is in the _Received_ status, indicating that the items have already been received. This is typically done when items need to be returned due to reasons such as damage, incorrect items, excess quantity, or quality issues.

To do this,

*   Go to **Purchase Order** under _Purchases_ in the left sidebar.
*   Create a [purchase order](/om/inventory/help/purchase-orders/purchase-order-creation.html) and mark it as _Received_ status. \[Or\]
*   Select the purchase order that is in _Received_ status.
*   In the purchase order details page, click **More** icon in the top.
*   Select **Create Purchase Return** from the dropdown.
*   You will be re-directed to [purchase return creation page](/om/inventory/help/purchase-returns/create-purchase-return.html#Create-a-Purchase-Return) where the details are auto-populated.