Purchase Return – Whenever any Purchase Return is conducted, as per the GST rules, the Product receipt needs to be posted and Goods to be sent through Delivery Challan to the Vendor. Once the Vendor process the Sales Return in their books, then that document number should be used to Invoice the Purchase Return.

Business Required – If this process is followed then there is a chance of overpaying Vendor as the return transaction will not reflect the Vendor Ledger unless it is invoiced. So to avoid this overpayment, the Purchase Return needs to be invoiced even before the Vendor has performed Sales Return in their books. An option is required to update the Credit Note Number and Date once the Vendor provides the same.