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How to enter a return?

To record a return, you have to create a Debit Note.

 

Let's say you have purchased a laptop from ABC Co. for $1029.99. So you will first enter this purchase as a Bill and make its payment entry to record the purchase. After 2 weeks, you returned the laptop. Then you will record a Debit Note towards ABC Co. for $1029.99 and then make its refund (Debit note) to the bank account.

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