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On the Supplier returns page, you can credit or reimburse yourself for goods returned to or services not received from your suppliers. The return should first be created using the procedure outlined in Creating supplier returns.
have an unpaid bill from the supplier which you can apply the return to, see 'To apply a return to an unpaid bills'.
either have no unpaid bills from the supplier, or want an immediate refund, see 'To mark the return as a refund from a supplier', below.