Refunding a bill (partial refund)

If you return some of the goods from a bill to your vendor, you need to record a partial refund. This reduces the amount you owe to the vendor and adjusts your inventory.

Before you start

• You must have a bill that is marked as received (goods are already in inventory).
• You must have permission to create and process bill refunds.
• You need to know which items you are returning and the quantity of each.
• The vendor should have agreed to the return.

Steps

1. Go to the bill — Navigate to Bills, find the bill you want to refund, and open it. Open Bills in Usystems

2. Look for the refund or return option — On the bill details page, find the button or menu option to create a refund or return. It may be labeled "Create refund," "Add refund," or "Return goods."

3. Select items to refund — Choose which items from the bill you are returning to the vendor and enter the quantity for each item being returned. Leave other items unchanged.

4. Enter the refund reason — If a reason field is available, note why the items are being returned (e.g., "Defective," "Wrong item," "Not needed").

5. Review the refund amount — The system calculates the total refund based on the items and quantities you selected. Verify this matches the credit note or agreement with the vendor.

6. Create the refund — Click the button to create the refund. A new refund record is created and linked to the original bill.

7. Confirm receipt by vendor — Once the vendor receives the returned goods, they will issue a credit note. Update the refund status if needed to mark it as approved or settled.

Accounting impact

When you create a partial refund, the system records:

• Inventory is credited (decreased) for the items being returned.
• Accounts payable (vendor payable) is debited (decreased) by the refund amount.

This means the amount owed to the vendor goes down, and your inventory count for those items is reduced. If goods have been used or sold, the cost impact depends on whether the items were in stock or already consumed.

Tips & common mistakes

• Get vendor agreement before returning goods — Do not return goods without contacting the vendor first. Returns without authorization may be rejected.
• Return goods while they are still in inventory — If goods have already been sold or used, a refund may not be possible; instead, you may need to create a debit note or contact the vendor for other arrangements.
• Keep the refund and original bill linked — Usystems keeps the refund linked to the original bill so you can see the full transaction history. Do not delete the original bill after a refund.
• A partial refund does not cancel the bill — The original bill remains on record. Only refunded items are reduced; items you keep remain part of the bill amount owed.