Hi, I need help please!
We purchase inventory overseas:
4 units at $69 each + Taxes + Landed Cost Voucher
All ok, until items arrive(We create the Purchase Receipt) and one of the item arrived somewhat damaged.
We keep the item and we are going to sale it at liquidation
The supplier has issue a refund to our original payment method for $75 total.
I tried to create a Debit Note\Purchase Return from the original Purchase Invoice
Stock as zero and amount as $75
My problem is in Accounting
- Debit: Creditors
- Credit: Stock Received but not Billed
After Payment Entry
- Debit: Payment Method
- Credit: Creditors
Stock Received ut not billed is credit with $75
and stock balance is the same, has not reduced the amount of the goods
Any alternative idea on how to record the $75 reimbursement from the supplier?
Another way, maybe not a purchase return
I finally manage to do.
- Create Purchase Order
- Create Purchase Invoice
- Submit Payment
- Create Purchase Receipt of all items.
- Submit a LCV of import duties(an do correct entries).
After a while, We detect 1 of the items has cosmetic imperfections; The supplier decided that we can keep the item and he would give us a partial refund.
So we need to make sure the correct item valuation rate is applied, while others account are balanced.
- Go to Original Purchase Invoice and create Return/Debit Note
- Set Accepted Qty as 0 and Rate as the Partial amount being refunded and submit
- In the Original Purchase Invoice submit a Payment Entry of Type Receive of the refunded amount in the account where you do received the funds.
- Go to Stock Reconciliation, select the Item and Warehouse, units and refund amount; in the Diferrence Account choose the correct account(Mine was: Stock Received But Not Billed)
After submission you will have the new rate of the items after the refund
Last is, Purchase Order and Purchase Receipt are marked “To Bill”, *just close them".
If anyone has a better method please, share
We use to receive many “Partial Refund and Keep the Item” from all our suppliers.