FAQ: Returning to Vendors

Can I return goods after they've been sold?

Technically yes, but it becomes complicated. Once items are sold, they are no longer in your inventory. If you return them, Usystems cannot reduce your stock count (because you don't have them). The refund will still reduce your payable to the vendor, but it may affect your cost of goods sold. Consult your accountant if this situation arises—a vendor return after a sale sometimes requires adjusting cost of goods sold or setting up an allowance account. It's best to return items before you sell them.

What if the vendor doesn't agree to the return?

That is a business decision between you and the vendor. Usystems will record a return if you create one, but the vendor may refuse to pay or issue a credit. Keep all correspondence with the vendor. If you create a return in error, you can undo it by reversing the return transaction. Consult your account manager at the vendor's company to resolve disputes.

How long do I have to return goods?

That depends on the vendor's return policy. Some vendors allow 30 days, others allow longer. Check your purchase order or invoice for the vendor's terms, or contact them directly. Usystems does not enforce return windows—you can create a return at any time, but the vendor may not accept it if it's outside their policy.

Can I return part of an invoice?

Yes, absolutely. You do not have to return all items from a purchase. You can select which items to return and how many units of each. Usystems will deduct only those items from your inventory and reduce your payable by only that amount. The rest of the invoice remains in effect.

What happens if I've already paid for the goods?

If you paid the vendor before creating a return, the payment is not automatically reversed. Your accounts payable decreases (you owe less), but the money you already paid stays in the vendor's account until:

• The vendor issues you a refund (cash or cheque), which you then record in Payments.
• The vendor applies it as a credit to your next purchase.
• You request a refund and the vendor processes it separately.

In short: a return does not refund your money. It only reduces your debt. You must then request or receive the refund from the vendor through a separate transaction.

Can I receive the refund as credit instead of cash?

Yes. Many vendors offer a credit note (voucher) instead of returning cash. A credit note can be applied to a future purchase from the same vendor. When you receive a credit note, record it in Payments as a non-cash payment. You can then use that credit the next time you buy from the vendor. Usystems will reduce your payable and show you the credit available for future purchases.

What if the vendor returns the goods in poor condition?

That is a dispute with the vendor, not a Usystems issue. If the vendor claims the goods you returned are damaged or incomplete, resolve the dispute directly with them. You might need to:

• Agree to a partial refund (if the vendor claims some items are damaged).
• Let the vendor return the goods to you and cancel the return.
• Escalate to a manager at the vendor's company.

Usystems will record what you and the vendor agree on.

Do I need a purchase order to create a return?

No. You can create a return for any purchase (PO, bill, or cash purchase) even if you did not use a formal PO. If the original purchase is in the system, Usystems will link the return to it automatically. If the original purchase is not in the system, you may need to add it first or contact your account administrator.