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20I recently joined this company, and am new to GP. In Purchasing we have various types of returns and credits from vendors. We use an accrued purchases account to process inventory received. However, I think, but cannot prove yet, that we are over-using the accrued purchases account when we input any type of credit from a vendor. There are too many unmatched transactions, and the account seems to be running a continual credit balance. Reconciling it has been ignored for over a year, so it's a real mess.
I would like to find a general overview of how the returns process should work. The GP manuals for POP do not list Returns in the table of contents, so I don't know if they even cover it.
Many times we receive credits from vendors when no return has taken place. One recent credit was because in 2002 (!) we paid an invoice twice, and the vendor found it and issued a credit this year, not a refund. A co-worker input the credit through Payables Transactions/Returns, and the distribution went to Debit-Accounts Payable, Credit-Accrued Purchases. I think the credit should have gone straight against the inventory account. I don't see how it will get moved out of Accrued Purchases at all, without a journal entry.
Thanks to anyone who can provide guidance.
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