What Is a Return Invoice?
What Is a Return Invoice?
After purchasing a product, you may decide to return it for various reasons. In such cases, the return transaction must be properly reflected in accounting records. A return invoice is the official document used to record this process. The issuance of return invoices within the scope of e-Invoice and e-Archive systems is subject to specific rules and procedures.
In commercial activities, not only sales but also return transactions play a significant role. Situations such as defective goods, incorrect shipments, or incorrectly issued invoices may require initiating a return process. In these cases, a return invoice must be issued to legally document the transaction.
The Process of Issuing an Invoice for Return Transactions
It is possible to return all or part of the purchased goods. Accordingly, an invoice containing the details of the returned items is prepared. This document can be issued through the systems provided by the Revenue Administration or via the electronic invoicing infrastructure in use.
Like other types of invoices, return invoices may also be rejected by the counterparty. If they are not rejected within the legal timeframe and remain valid, it is also possible to return a return invoice.
Mandatory Information to Be Included in a Return Invoice
When preparing a return invoice, the following information must be included in full:
- The date and document number of the original sales invoice
- The quantity of the returned products
- The unit price of the returned goods
- The total amount of the returned items
All of this information must be fully consistent with the details stated on the original sales invoice.
Timing for Issuing a Return Invoice
Invoices issued electronically are generally finalized by the system within 7 days. Therefore, if a product return is to be made, the return invoice must be issued within 7 days from the date of the sales invoice. Exceeding this period may invalidate the return transaction.
Creating a Return Document Under the e-Archive System
If a return invoice is to be issued based on a sale made under the e-Archive system, the transaction must be completed within 7 days from the date of sale.
This process can be carried out through authorized private integrators or via the e-Archive portal of the Revenue Administration.
How Does the Return Process Work in the e-Invoice System?
Return transactions under the e-Invoice system generally follow the same procedures as e-Archive invoices. However, the e-Invoice system includes two different scenarios: basic and commercial.
- In the basic invoice scenario, the invoice sent by the seller is automatically approved once it reaches the buyer. Therefore, the buyer must issue a separate return invoice to complete the return process.
- In the commercial invoice scenario, the buyer has an 8-day period to approve or reject the invoice. If the invoice is rejected within this period, there is no need to issue a return invoice. If the period expires, issuing a return invoice becomes mandatory.
Meaning of a Return Invoice from the Seller’s Perspective
When a business is acting as the seller, it may receive a return invoice issued by the buyer. In this case, the document represents a sales return for the seller, and accounting records must be adjusted accordingly.
What Is a Return Invoice Issued by the Buyer?
When a business acts as the buyer and returns part or all of the purchased goods, it issues a purchase return invoice.
For example, assume that 500 units of a product with a unit price of TRY 100 are purchased from a supplier. If 100 units are returned, a return invoice totaling TRY 10,000 must be issued. The invoice must clearly state the unit price, the returned quantity, and the total return amount.
Key Points to Consider When Issuing a Return Invoice
When issuing a return invoice, the following points should be taken into account:
- The invoice must be approved by the tax authority or a notary public.
- The phrase “This is a return invoice” must be clearly stated on the document.
- The same invoice type used for the sales invoice should be used; there is no separate invoice booklet.
- Returned goods must be invoiced at the same unit price as stated on the original sales invoice.
- In partial return cases, calculations must be based solely on the returned quantity.
- All information on the return invoice must match the details on the sales invoice.
- Whether the invoice is issued as open or closed depends on the agreement between the parties.
- Return invoices may be issued separately as e-Invoices or e-Archive invoices and submitted through the Revenue Administration systems.
