Purchase Return
Definition
Goods a business returns to a supplier after purchase, reducing recorded purchases and the amount owed — often via a debit note. Also called returns outward.
Related Terms in Core Accounting
Capital Work in Progress (CWIP)
Spending on fixed assets still under construction or not yet ready for use. It sits on the balance sheet as CWIP and is not depreciated until the asset is completed and put into service.
Deferred Revenue Expenditure
A large revenue expense whose benefit extends over several periods, written off gradually rather than all at once. The concept is used less under modern standards, which favour expensing or capitalising.
Trial Balance vs Balance Sheet
A trial balance is an internal list of all ledger balances used to check that debits equal credits; a balance sheet is a formal statement of assets, liabilities and equity at a point in time, prepared from those balances.
Accounts Payable (AP)
Money your business owes to suppliers and vendors for goods or services received but not yet paid for. Tracked as a current liability on the balance sheet. HelloBooks automates AP with purchase orders, GRN matching, and vendor bill management.
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