Inventory and returns

[gkamysz]

How do you account for returned items that are on hand waiting to be returned to the manufacturer for credit or otherwise? I'd like to know I have them, but at the same time I don't want it to skew my count of saleable items.

It looks like making a credit from a vendor will do this, but is there anything I can do while it sits on the shelf before I return it? I only send items back a few times a year, but I need to credit customers before immediately.

Thanks.

Greg

[accountingpcr]

I a not sure the exact answer to your question but keep in mind that creating a credit for a customer will remove the inventory item from your inventory. If you end up doing a credit to the vendor as well, then you will be removing more items from the inventory than you actually want to.

What I would do is a credit for the customer at the time of the return and then use excel to keep track of items that will be shipping back to the vendor.

Dawn

[gkamysz]

Selling an item to a customer removes it from my inventory. Then if it's bad and he returns it, it comes back into my inventory, but I can't sell it. Eventually when I return it it will be removed when the vendor gives me a credit, but between that time I have an item in inventory, which can't really be sold. The only thing I can come up with is a temprary invoice where I collect the defective items.

Maybe it would be best to just process a vendor credit as soon as the defective items arrive. Then just check the items against it when I return them to the manufacturer.

Greg

[accountingpcr]

Originally posted by gkamysz
Selling an item to a customer removes it from my inventory. Then if it's bad and he returns it, it comes back into my inventory, but I can't sell it. Eventually when I return it it will be removed when the vendor gives me a credit, but between that time I have an item in inventory, which can't really be sold. The only thing I can come up with is a temprary invoice where I collect the defective items.

Maybe it would be best to just process a vendor credit as soon as the defective items arrive. Then just check the items against it when I return them to the manufacturer.

Greg

Sorry about the error when I wrote to you before. It was a slow morning and no red bull!!

I like your idea to create the vendor credit as soon as you get any defective items. I think it would be rather simple to keep adding to the credit as time goes by.

Sorry that I couldn't be more helpful and thanks for the good idea.

Dawn