Inventory Return Question

[#1]

I have a customer who created a delivery note in error and then created a return for that delivery note.  They did not have the setting checked to open the sales order after the delivery was returned so they created another Sales Order and created the delivery correct.  All of this worked fine.

The issue I have is that the return reversed the cost accounting transaction and put the inventory debit value in inventory returns account not finished goods inventory.  So when we shipped it again we credited inventory finished goods not inventory returns.  How do I remove value from the inventory returns account?

Thanks,

Mattt

[Former Member]

Hello Mathew,

Suppose consider in Inventory Finished Goods Accounts (IFG)= 2000 ( before perform the below transaction) & Inventory Return Accounts (IR)=0

Now Delivery Order JE are below:

Delivery      DR       CR

----------------------------------------------

IFG                      100

COGS       100

Now Inventory Finished Goods Accounts (IFG)= 1900

Now Return JE are below:

Return       DR         CR

---------------------------------------------

IR             100

COGS                     100

Now Inventory Finished Goods Accounts (IFG)= 1900 & Inventory Return Accounts (IR)=100 but this 100 should be added into IFG Account then its should be 2000.

Now again Delivery Order JE are below:

Delivery       DR       CR

----------------------------------------

IFG                          100

COGS        100

Now Inventory Finished Goods Accounts (IFG)= 1800

Now we have Inventory Return Accounts (IR)=100 & Inventory Finished Goods Accounts (IFG)= 1800, So we have to preform 1 JE

JE                DR           CR

----------------------------------------

IFG              100

IR                               100

Finally results

Inventory Return Accounts (IR)=0 & Inventory Finished Goods Accounts (IFG)= 1900.

Kindly check with your real data.

Rgds,

Kamlesh Naware

[frank_wang6]

Due to default G/L setting, the return value will post to different account other than the regular finished good account. You can either change your G/L determination setting for future posting, and use manual journal to adjust the two inventory account (Finished good and Returned good, both should be an 13.... account.)

Or u can leave the G/L setting untouched, just do a manual entry at end of each period to move the Returned Good balance to Finished Good.

Frank

[Former Member]

Hi Mathew,

You need to check your G/L account determination setup for Sales Credit account.

Kindly go to G/L account determination and under Sales Tab --> General. change Sales credit account as same as your Revenue account.

Thanks,

Harshal

[Former Member]

If you reverse a delivery why would you need to hit a sales account?  Sales has not been posted since their is not AR invoice.

[Former Member]

Hi,

In this case you need to check GL account determination and under Inventory Tab check which GL is assigned to Sales Return account.

or else you can always transfer your account from Return to FG through Manual Journal Entry.

Thanks,

Harshal