Every business encounters supplier returns, whether due to quality issues, damaged goods, or incorrect orders. While returns are often unavoidable, understanding why they happen transforms a simple transaction into valuable business insight.
The Supplier Return Reasons feature requires a specific reason for each returned item, creating detailed records that reveal patterns and improvement opportunities. The flexibility to create custom return reasons means you can track everything from "Supplier Quality Issues" to "Customer Specification Change," adapting the system to your specific workflow. This systematic approach provides transparency, builds an auditable trail for compliance, and delivers actionable insights about suppliers and purchasing decisions.
Manage Supplier Return Reasons
Building an effective return reason system starts with creating reasons that reflect your business reality. Creating reasons such as "Damaged on arrival", "Incorrect stock", and "Overstock" provides more actionable insights than simply "Returned". Once established, these reasons can be easily updated or removed as your business needs evolve.
Add a Supplier Return Reason
To create a custom Supplier Return Reasons:
From the main menu, go to Settings > System > Supplier Reasons.
In the "Supplier Return Reason" field, enter a uniquely named reason.
Click Add.
The new Supplier Return Reason will be added to the Supplier Return Reason list on the page and will be available to select in new or Parked status Supplier Returns.
Edit a Supplier Return Reason
Supplier Return Reasons can be edited as your business needs change:
Go to Settings > System > Supplier Return Reasons.
Click on the Supplier Return Reason's row.
Edit the reason as required.
Click away from the Supplier Return Reason to save.
When you edit a Supplier Return Reason's name, the change applies retroactively to all Supplier Returns that previously used that reason. This ensures consistency across your historical data.
Delete a Supplier Return Reason
If a Supplier Return Reason has not been used and is no longer needed, it can be deleted:
Go to Settings > System > Supplier Return Reasons.
Click on the bin icon along the Supplier Return Reason's row.
If you don't see a bin icon next to a Supplier Return Reason, it means that reason is currently being used by an existing Supplier Return and cannot be deleted. If the Supplier Return is in the Parked status, you'll need to change its selected reason before deletion becomes possible. Supplier Return Reasons in Supplier Returns in Completed or Deleted status cannot be changed.
Using Supplier Return Reasons
When processing a Supplier Return, use the Reason drop-down menu, per return line, to assign a reason why the purchased stock or value is being returned to a Supplier.
Open a Parked Supplier Return.
Use the Reason drop-down per product line and select a reason for the product's return.
Click Save or Complete.
Report on Supplier Return Reasons
The true value of Supplier Return Reasons emerges through the dynamic filtering capabilities in the advanced business intelligence module BI Vision. This reporting functionality allows you to analyze patterns in your returns and identify areas for improvement in your supplier relationships or purchasing processes.
To review your Supplier Returns by Supplier Return Reason:
From the main menu, go to Business Intelligence > Purchases.
Select the Vision tab.
Select the "Supplier Return value tile".
Scroll down to the "Return reason ranked by Supplier Return Value" KPI.