Scrap Returned Items

Jonathan2708

Hi,

I just need a bit of advice on handling returns of items from customers. If an item returned from a customer is faulty and beyond repair, the item will be scrapped. In this case the item would be booked in off the return order using 'Inventory Value Zero'=Yes.

My question - is there a way of taking the item out of inventory as scrapped, other than using a normal Negative Adj. item journal? I'd like something that can post to a different G/L for scrapped items.

Any help appreciated,

Jonathan

umabhuwaneshwari

Hi,

One idea would be to have a separate location created called "scrap" to which all scrap materials can be transferred. Then a revaluation of the scrap location can be done to bring about the required adjustment to the G/L accounts.

Thanks,
Uma

Deep

Hi,

You can receive the return order at a separate location (Scrap, for example).
but still you need to post a negative adjustment to write off the inventory from the scrap location.

You can also think about posting a Sales Credit Memo via invoicing the Sales G/L account with some approprite reason code. This way all your accounting entries will get reversed (other that Inventory accounts).

But passing a writeoff using item journal is all time a better way.