Recently, many countries have implemented various taxes like GST and VAT. Taking into consideration all these things and other applicable expenses we have created an advanced Purchase Return Book With Tax.
Earlier, we have issued Simple Purchase return Book Template which only contains simple transaction details. You can download from the link below:
What is a Purchase Return Book?
Purchase Return Book is a subsidiary book of accounts which records the goods returned to our suppliers that are against the purchase order, poor quality, inaccurate quantity or untimely delivery. Purchase Return Book is also called Return Outward Book.
Such discrepancies happen often in every business and are a routine part of the business. Such transactions are posted in Purchase Return Book in the respective account of the supplier as and when the return of goods takes place.
Every entry in the Purchase Return Book is made on the basis of debit notes issued by the buyer to the suppliers.
What are Debit Notes?
Debit Notes are documents issued to supplier along with the goods returned. The Debit Notes contain the details like quantity, product details, reasons for return etc.
A sample for Debit Note format With GST has been given below for your ready reference:
Thus, the supplier’s account is debited in our books of account. Accounts Payable amount of the supplier decreases whenever a purchase return is initiated.
Purchase Return Book With Tax Excel Template
We have created a simple and ready-to-use Purchase Return Book With Tax with predefined formulas. You can easily record your purchase transaction in this template.
Let us discuss how to efficiently use this template.
How to use Purchase Return Book Template With Tax?
Purchase Return Book Template With Tax is really a simple and easy template. This template consists of 2 sections:
- Header Section
- Data Input Section.
1. Header Section
Header section consists of your company name and Logo and the heading “Purchase Return Book”. In addition to that, enter the month and year for which you are maintaining the Purchase Return Book.
2. Data Input Section
Data Input Section consists of following columns:
Date: Date of Goods Returned
Debit Note No.: Debit Note Number
Invoice No.: Invoice Number against which the debit note is issued.
Supplier Name: Select the supplier name from the dropdown list.
The names of the suppliers can be updated in Supplier Sheet.
Product Details: Insert the product name or article number etc for the product in this column.
If there are multiple products then in one debit note enter only the names of products. Otherwise, you can add it in multiple rows with same debit note number and invoice details. The same applies when there are multiple tax rates for different products.
Quantity: Quantity of the product returned.
Rate: Rate of the product.
Tax %: Applicable Tax percentage on the product.
Tax Paid: This column contains a predefined formula. Thus, entering the percentage in the previous column is enough. The formula applied here is:
[(Quantity X Rate) X Tax %]
If you just want to enter the tax amount leave the Tax % column blank and overwrite the formula.
Other Expenses: Whenever a purchase takes place there are many additional expenses incurred on it. Some businesses claim back such expenses from their suppliers in lieu of wrong supply.
Total Amount: Final line total including product price, tax, and other expenses. The formula applied here is:
[(Quantity X Rate) + Tax Paid + Other Expenses]
In the end, the Final Total of Purchase Return in that month is displayed in the last row. Sum Function is used to calculate the Purchase Return Total Amount for the respective month.
When there are many such purchase return transactions, there are 2 ways to manage the records and print reports for a particular supplier.
The first way is that you can make one sheet per supplier. The second way to do is that you can use the table function. The Excel Template has been created using the table.
You can print report pertaining to any column heading. Just click on the button beside the column heading. It will display a dropdown list. Select the desired date, supplier name, tax % etc and click “OK”. The sheet will display the desired results. See images below:
The Purchase Return Total will display the sheet total only. To know the total of a particular supplier, either select the cells with the amount and it will display the amount in the below bar or you can enter sum formula for the respective cells in another cell.
Purchase Return Book With Tax can be a useful tool to maintain your purchase return records. Regular maintenance of Purchase Return Book helps to avoid discrepancies of creditor’s accounts.
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