We have been struggling with the process of entering and properly posting "wrong item" returns that were shipped in error and that do not appear on the original invoice. Not an everyday occurance, but at times our shipping department sends out the wrong item to a customer and we need to issue a return call tag for that wrong item. Our goal is to process the transaction as a return in SOP just as we do sales orders, however, we are unsure about the correct distributions to post the return item that was shipped in error. Please give suggestion on the best way to process this transaction. We considered entering a "Non Inventory" item for the return, however, the distributions did not default since we are not familiar with this type of transaction.
The second part of this issue is when we ship out the correct item to the customer. We are unsure if we should create a new sales order, since inventory for the correct item was already accounted for when the first invoice was posted. We considered issuing a new sales order for the correct item, and then doing an inventory adjustment,since we do not want the item deducted twice from inventory.
Any suggestions or advise would be greatly appreciated.
Well if the item was sent out to a customer with doing a sales order, then your inventory is overstated and you would need to do a negative inventory adjustment to bring it back into balance. This way by doing the return you would increase it back to where it was before the mistake was made. You need to enter transactions as inventory items so your purchase receipts and IV HITB stay in agreement. You should hit the inventory and cogs GL accounts for both of these tranactions as this will net to zero.
I am not sure about your second part. In the first part you are saying the item was not on the invoice and then you are saying it was on the invoice. My gues is you should enter a new sales order to remove this item from inventory and now the stock quantity will be lower by whatever quantity was invoiced to the customer.
Richard E. Wheeler 2013 and 2014 MVP
Member Microsoft Academic Alliance
www.rbsolutions.com Revered Business Solutions Ballston Lake, NY 518-877-0763 x10