![]() "When they cost less we refund them the difference." You Apply that Credit Memo to this invoice. "Because it was our mistake, We then ship the correct items at no charge if the new items actually cost more than the original." List the same item on a Credit Memo (customer return/refund transaction) to show the Reversal of that sale. "The wrong items were shipped to a customer after they paid the invoice." Nothing here is done using JE because it is Sales and has to be managed as Sales using Customer break this down: I happened to use an Other Charge Item to show my reduction of the gross hours charged, or I can list my same Service item on the Credit Memo. The Credit Memo is the mirror image of Sales, and it still is Yours to control, for tracking, reporting, and proper accounting.Įxample: I charge your charity for 10 hours Service item and then I credit memo half as Donation in Kind. You get to list whatever you need on Sales transactions. Now you flesh it out: did you want to list the same Original Item as the Original Sale, to see in your reporting, qty Sold and qty Reversed? And, if that is inventory and it isn't going back to stock, you cannot list Inventory on the CM. Here is what matters: You use on a credit memo whatever you need to see on your reporting, that flows data to the account(s) and has a taxable status that applies to your need. "We are the go between for client and vendor so we have no inventory but it comes out of our pocket if something is damaged." It is a Process that applies to Anything that meets this need: reversing a sale. And it correctly affects Sales and sales this apply to non-inventory items as well?" If this had been a Paid Sale with no replacement shipment, this Credit Memo has the icon at the top to Refund the customer. The New Invoice is where you list the Replacement parts. This Credited Value is either applied to that open invoice or applied to the New invoice for the replacement parts. And it correctly affects Sales and sales reporting. You use an Other Charge type item linked to an income account for tracking Refunds and Write Offs. ![]() You create a Credit Memo for the customer and don't use the original items, since you are not getting an RMA condition. When you do that, you break the relationship between the Accounting and the Inventory management tools you Changed an account outside of the requirement for the associated "Item Name reference" for qty and/or cost. ![]() Further, you never post a JE to the asset account for inventory, if you are using QB inventory type item names. And you want to avoid using JE for this that won't affect inventory or sales reporting. You already have that entry from the original Sales Transaction. "debit COGS (for purchase value of the damaged inventory)Ĭredit the asset account for inventory purchases" ![]()
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