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Using GP 2010, I just stumbled across an issue with PO Returns. Normally when you enter a PO shipment receipt, the GL accounts that get hit are a debit to inventory and a credit to accrued purchases. However, if you the do a PO Return for this shipment receipt it will credit inventory and debit cost of goods sold. So now your received/not invoiced report will no longer agree with your GL account for accrued purchases. Is there any way to correct this?
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Thanks Richard. Those boxes take some thinking to use them correctly. The Invoice Expected box really means that you expect an invoice for the returned goods not that later on the goods would be reshipped and invoiced.
In your example, DONT check the boxes!
Well that does not make mujch sense. As an example let's say I order 1,000 Deluxe Widgets at $5 a piece.
Step 1)I enter the PO for 500
Step 2I do a shipment receipt for 500 accidentally. I now have a debit to inventory and a credit to accrued.
Step 3)I realize this is a mistake and do a PO return, I now have a debit to COGS and a credit to inventory
Step 4)I come along and do 5 shipments of 100 apiece. Each one does a debit to inventory and a credit to accrued.
Step 5)Finally I do an invoice match for 500. This debits accrued and credits AP.
After all of this I still have this incorrect debit to COGS sold that was created in Step 3. How does that get corrected? The debit should have been to accrued not to AP. The only way I see now is a ledger entry.
Marking Replace Returned Goods assumes they are returning 500 to receive 500 more separate from what was left remaining on the PO. It assumes that an invoice will be sent to move the dollars from Accrued Purchases to AP and thus hits payables and inventory.
The invoice match had not been done so it was a PO Return. Both boxes were checked.
Replace Returned Goods and Invoice Expected for Returned Items.
What had happened they had received 50 widgets but had entered and posted 500 on the shipment receipt. There were 750 on the PO. More were due in at a later date.
Are you doing a Return or Return with Credit? Are you marking the Replace Returned Goods or Invoice Expected for Returned Items?
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