Account postings for returns are made according to the same program logic as those for delivery items:

In the case of a delivery for a returns item, the material returned is deducted from the stock account. The offsetting entry is posted to a GR/IR clearing account. When you post the credit memo, the GR/IR clearing account is cleared. The offsetting entry is posted to the vendor account.

If price variances occur for a returns order, they are posted in the same way as quantity and price variances for delivery items.

Taxes are also handled in the same way for returns and delivery items.