Vendor Return w/o Quality Module

If anybody out there does “NOT” have the QA Module, I would like to know how you handle Vendor Returns. There seems to be a missing piece in the accounting:

Action Dr CR
Purchase Inventory AP
Debit to Vendor AP Inventory

So far it’s a wash. But I still have inventory to return and w/o the QA module, it appears I have to Adjust Inventory which makes it look like an expense.

Thanks in advance for any suggestions?

We adjust inventory using a special Reason Code that is just for Supplier Returns. That Reason Code has a GL Control code that is tied to specific GL account (in our case it’s GL 1398-10-10). Then our accounting department reconciles that transaction with an AP credit memo. Kind of a manual process, but luckily we don’t have many supplier returns.

1 Like

I will agree with lacey I have worked where we had QA and not used it and Where they didn’t have it. The way to do it is a quantity adjustment reason code tied to an expense account and then a miscellaneous debit memo to the same expense account. If it doesn’t 0 out then it is an expense. This was typically restocking fees and such. Putting them to the same account saved the reconciliation. After that you can easily see where the mismatch came from and use a journal entry to move it to the proper account or leave it there because it is typically an expense. That depends on your finance team/auditors.

1 Like

Thanks

What @MattSpotts & @lgraham said! Exactly the tact that I have recommended multiple times.