Accrued Landed Cost Not Reducing Inventory G/L with a POP Return

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Posted on by kmalone43

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1. We receive inventory against a PO that's applied to a PO prepayment. This receipt has accrued landed cost.

2. We return the receipt w/ credit. When we look @ the Inventory HITB, we see a the inventory cost reduction of the actual inventory PLUS the reduction for the accrued landed cost.

3. When we look at our G/L when all is said and done, the inventory account is ONLY reduced by the inventory cost amount & the accrued landed cost reduction apparently goes nowhere.

I'm assuming that receipt returns should correctly return and impact the G/L for the accrued landed cost as well? Otherwise, like we have to do now, everyone would be constantly making journal entries to true up the G/L to the inventory subledger?

Any insight here? Thanks in advance!

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