Rejection In & Rejection Out Vouchers

Learning Objectives

Day 4 complete karne ke baad student:

• Rejection In aur Rejection Out ka core business concept samjhega.
• Rejection In aur Rejection Out ke beech ka fundamental difference identify karega.
• Quality inspection ke baad purchase-side goods supplier ko return karne ke liye Rejection Out record karega.
• Customer side se defective/rejected goods wapas aane par Rejection In record karega.
• Damaged ya defective stock ko saleable inventory se alag rakhne ke liye separate godown ya Batch/Tracking references maintain karega.
• Physical inventory rejections aur commercial returns (Sales/Purchase Returns) ke alag-alag accounting workflows ko differentiate karega.
• Stock Summary aur inventory rejection registers verify karega.

Core Concepts: Rejection In vs Rejection Out

Warehouse operations mein quality inspection ke dauran defective, damaged, ya non-specification goods ko saleable inventory se isolate karne ke liye inventory movement vouchers use kiye jaate hain:

• Rejection In: Jab customer ko goods deliver karne ke baad wahan se defective ya rejected goods physically business ke paas wapas aate hain. (Effect: Physical stock increases in return custody).
• Rejection Out: Jab supplier se goods receive hone ke baad quality check mein defective/substandard nikalne par business unhe wapas vendor ko bhejta hai. (Effect: Physical stock decreases).

Comparison Matrix

Golden Rule:
Rejection In = Customer dwara reject kiya gaya maal wapas andar aaya.
Rejection Out = Supplier ka kharab maal check karke bahar wapas bheja.

Rejection vs Commercial Returns

Rejections ko blindly Purchase Return ya Sales Return ke sath confuse nahi karna chahiye:

• Rejection (In/Out): Yeh pure inventory movement tracking ka mechanism hai jo batata hai ki physical maal inspection mein pass hua ya reject hua.
• Return (Sales/Purchase Return): Yeh commercial aur financial accounting settlement hai jisme Debit Notes ya Credit Notes ke zariye party balances adjust kiye jaate hain.

Practice Company Setup & Masters

Company Profile

• Company: ABC Traders | State: Maharashtra | FY: 2026–27 | Inventory: Enabled

Required Masters Setup:

• Stock Item: Printer (Unit: Nos, Standard Cost: ₹8,000) & Monitor (Unit: Nos, Standard Cost: ₹10,000)
• Suppliers (Sundry Creditors): Tech Distributors, Maharashtra Computer House
• Customers (Sundry Debtors): Mumbai Office Solutions, Pune Retail
• Godowns (Optional for Isolation): Main Godown (Saleable) & Rejected Goods Godown (Defective stock)

Practical Walkthroughs: Rejection Out & Rejection In

Part A: Rejection Out (Purchase Quality Rejection)

1. Inward Receipt: Business received 100 Printers @ ₹8,000 = ₹8,00,000 from Tech Distributors.
2. Quality Inspection: 10 Printers found defective / damaged during inspection. Accepted stock = 90 Units.
3. Recording Rejection Out: Go to Vouchers → Select Rejection Out → Party: Tech Distributors → Item: Printer → Quantity: 10 Nos (Select Batch/Tracking reference if active) → Save with Ctrl + A.
4. Stock Effect: Closing stock reduces from 100 to 90 Printers.

Part B: Rejection In (Sales Quality Rejection)

1. Dispatch / Delivery: Business delivered 50 Printers to Mumbai Office Solutions.
2. Customer Inspection: Customer identifies 5 Printers with manufacturing defects and ships them back.
3. Recording Rejection In: Go to Vouchers → Select Rejection In → Party: Mumbai Office Solutions → Item: Printer → Quantity: 5 Nos (Allocate to Rejected Godown / Batch if required) → Save with Ctrl + A.
4. Stock Effect: Physical inventory increases by +5 Units in the rejected holding register.

Complete Practice Sets

Practice Set 1 (Rejection Out Lab):

• Purchase: 100 Printers @ ₹8,000 and 50 Monitors @ ₹10,000 from Tech Distributors.
• Inspection & Rejection: 10 Printers and 5 Monitors rejected.
• Task: Record Rejection Out vouchers and verify that closing stock reflects 90 Printers and 45 Monitors.

Practice Set 2 (Rejection In Lab):

• Sales Delivery: 40 Printers and 20 Monitors dispatched to Mumbai Office Solutions.
• Customer Return: Customer rejects 4 Printers and 2 Monitors.
• Task: Record Rejection In vouchers and reconcile stock levels.

Practice Set 3 (Batch-Wise Rejection Integration):

• Stock Batch: P-002 has 150 Nos. Customer rejects 15 units originating specifically from batch P-002.
• Task: Ensure Rejection In is mapped correctly to batch P-002 so lot tracking remains accurate (Balance: 135 Nos).

Verification Reports, Common Mistakes & FAQs

Verification Reports in TallyPrime:

• Stock Summary: Verify net closing stock after factoring in both Rejection In (+Qty) and Rejection Out (−Qty).
• Inventory Books / Rejection Registers: Review chronological movement of rejected lots against respective suppliers and customers.
• Godown Summary: Confirm segregated movement of defective stock parked in the Rejected Goods Godown.

Common Mistakes:

• Confusing Rejection Out with a Purchase Return Debit Note (Rejection Out is purely physical movement, whereas Debit Note is financial).
• Mixing up rejected defective stock directly into saleable godowns without isolation.
• Failing to tag the correct Batch Number or Tracking Reference during Rejection In entries.
• Recording customer rejections as normal Sales Returns without noting quality inspection status.

Frequently Asked Questions:

• Q: Rejection Out entry pass karne par stock par kya impact padta hai?
  A: Physical inventory quantity decrease ho jati hai kyunki defective goods vendor ko wapas bhej diye jaate hain.
• Q: Kya Rejection In aur Sales Return same cheez hain?
  A: Nahi, Rejection In physical goods ke wapas aane ki movement tracking hai, jabki Sales Return financial/commercial ledger adjustment hai.
• Q: Rejected goods ko separate godown mein rakhna kyun zaroori hai?
  A: Taaki defective ya inspection-pending stock galti se fresh saleable inventory ke sath dispatch na ho jaye.

Quick Revision & Completion Checklist

Rejection Golden Workflow:
Inward Goods → Quality Inspection → Defective Found → Rejection Out (− Stock) to Supplier OR Outward Dispatch → Customer Rejects → Rejection In (+ Stock) from Customer

Completion Checklist:

• Rejection In and Rejection Out concepts and differences mastered
• Purchase-side Rejection Out recorded for defective supplier lots
• Sales-side Rejection In recorded for customer-returned defective goods
• Batch-wise and Godown-wise tracking applied to rejections
• Stock Summary and Rejection Registers reconciled