How do I reverse a purchase order that I've received?

There several different ways to reverse a receipt or bill, depending on the status of the purchase order (PO) and currency type.

Fully or partially received

1. Go to Purchases > Supplier bills.
2. Open/edit the bill by clicking on it.
3. Tick the product item(s) being returned.
4. Click Actions, then select Create purchase return.
   A purchase return (reversal of the receipted items) will be created and displayed on screen. You can also find it listed on the purchase orders page marked as a return like this:
   

You can now:

• Generate a supplier credit note by committing the purchase return (same process as committing the receipt of a PO).
• Redo the purchase order by creating a new one with the same PO number as before.

Reverse fully or partially received and awaiting bill

1. Go to Purchases > Purchase orders. 
2. Open/edit the PO by clicking on it.
3. Reverse the receipt:
   1. If the PO is fully received: click Undo receive.
      The receipt of the order items will be reversed and the status of the PO reverted back to Confirmed (no longer fulfilled).
   2. If the PO is partially received: click More, then Undo awaiting bill receive(s).
      The receipt of the order items will be reversed and the status of the PO reverted back to Confirmed (no longer fulfilled).

Reverse fully or partially received PO with posted landed cost calculations

Automatic method - ONLY for landed costs that have one purchase order in the costing

Note: if the landed cost calculation was posted over 60 days ago, the "Redo costing" button will not be visible. This is a safety check to prevent redoing landed costs as the purchased products might have already been sold.

1. Coming from the purchase orders page
   • Go to Purchases > Purchase orders. 
   • Search and open the PO by clicking on it.
   • If the purchase order has a status of part fulfilled, click "View bills", click on a bill to view and then follow the steps "Coming from the purchase bill page" below
   • Under Shipping, click View landed costs to open/view the posted landed cost calculations.
     
   • Click Redo costing at the top.
     
   • By redoing the landed costing, the system performs the following tasks:
     • Automatically creates and posts a reversal of the purchase order receipt and landed costs (negative quantities of the original). Please note that if the original bill or bills have already been sent to Xero, new supplier credit note(s) will be generated to offset this bill on Xero,
     • If the original PO receipt contains batch or serial numbers, a reversal transaction is automatically created by the system
     • Copies the original PO and the landed cost for redoing the PO and landed cost calculation
2. Coming from the purchase bill page
   • Go to Purchases > Supplier bills. 
   • Search for the bill and open it to view
   • Click Actions
   • Click "View landed cost calculations"
     
   • Click Redo costing at the top.
     

Proceed as usual after creating a fresh copy of the PO and landed cost. Alternatively, to simply reverse or offset the previous landed cost, bill creation and inventory, delete the newly copied landed cost (and cancel the PO).

Manual method

1. Go to Purchases > Purchase orders. 
2. Search and open the PO by clicking on it.
3. Under Shipping, click View landed costs to open/view the posted landed cost calculations.
   
4. Click Create PO return at the top.
   
   A reversal of the landed costs (negative quantities of the original) will be created and displayed on screen.
5. A purchase return (reversal of the receipted items) will also be created. You can find it listed on the purchase orders page marked as a return like this:
   
   Receive and commit this purchase return (same process as committing the receipt of a PO).
6. Click "Enter landed cost bills" (or go to "Received awaiting bill" and open the PO) to commit and post the reversal landed costs (created in Step 4). This will generate one or more supplier credit notes including the landed cost fees supplier credit notes.

After the PO and landed cost calculation has been reversed (using the method outlined above), the original PO can be copied to a new PO for editing and redo the PO process.

• Go to Purchases menu, then Purchase orders
• Search for the original PO number and open it to view
• Copy the PO:
  • Click "more"
  • Click "Copy"
  • Click Yes to confirm
  • After the PO has been copied
    • Click No not to open the new PO
• If the original PO's status is part-fulfilled:
  • Click "more"
  • Click "Complete" to close this PO off with no more product receipts
• Open the new PO (created above)
• Do the necessary edits and corrections
• When ready, receive the new PO
• And go through the landed cost calculation to finalise and post the stock receipts and supplier bill(s).

Another way to reverse a supplier bill for a fully receipted and landed costed PO is to do it manually.

1. Create a purchase return to reverse or offset the items in the supplier bill
   • Go to Purchases menu
   • Supplier bills
   • Search for the PO number or supplier invoice/bill number
   • Click on the right bill to open
   • Tick all the line items
   • Click "Action"
   • Click "Create purchase return".
     • By clicking on this option, the system creates a reversal of the billed items, and then opens the reversal PO for editing.
     • To complete this return and create a reversal supplier credit note, perform a landed cost calculation:
       • Receive the purchase return PO in full
       • Immediately, click on "Enter landed cost bills'". Alternatively, go to Purchases menu, then "Received awaiting bill".
         • Find and open the PO
         • Open the PO
         • Click "Create bill"
       • Enter the same supplier invoices details including date and number. For the invoice numbers, enter with a return word suffix, for example: 1234-2 or 1234-Rev
       • If any, add the remaining supplier invoices/bills that were included in the initial landed cost
       • When ready, finalise the costing to create the credit note
2. Once the reversal is finished, create a new PO with the same information as the old one, but with any corrections made.
   • Follow the normal PO process