AccountEdge Knowledge Base
  • Section: Purchases
  • Last updated: July 1, 2019, 5:27 p.m.

Return a Purchased Item for a Different Value Then It Was Bought

Background

For whatever reason one might find they are returning inventory for less than it was originally purchased. If this needs to be reflected without affecting the average cost for the item in question then it can't be entered as a simple negative purchase to return the item. The following steps will:

  • Reduce inventory by the amount being returned
  • Remove from the asset inventory account the full value of that which is being returned
  • Create a debit for the refunded value to be refunded or applied to a future purchase
  • Allocate an expense for the difference between the original purchase value and the returned amount

Adjust Inventory for Return

  1. With your AccountEdge program open navigate to the "Inventory" module
  2. In the Inventory module click on the "Adjust Inventory" button
  3. The Adjust Inventory window will open, set the date to be the date of the return
  4. Under the column "Item Number" select the item in question
  5. Under the Quantity column enter the amount you are returning as a negative number
  6. Under Unit Cost make sure it is the correct average value you are looking to maintain
  7. Under Amount it should calculate the value of the inventory being returned as a negative
  8. Under Account select an expense account to allocate the loss in value between the purchase and return
  9. Fill out any pertinent information such as memos, location, or job, make note of the Inventory Journal Number and click record

Receive Vendor Debit for Return

  1. With your AccountEdge program still open navigate to the "Purchases" module
  2. In the Purchases module click the "Enter Purchase" button
  3. Select the Vendor you will be receiving the debit from
  4. At the bottom of that window you will see a "Layout" button, select "Service" layout
  5. In the description or memo field enter the Inventory Journal Number from before so there is a record of what this is for
  6. Record the Amount being refunded as a negative value
  7. For the Allocation account select the same expense account used in the Inventory Adjustment
  8. Fill in any other information and click record

Apply the Debit

  1. Still in the Purchase module of AccountEdge, click the "Purchases Register" button
  2. In the Purchase Register Window, navigate to the "Returns & Debits" tab
  3. The Debit created should be listed here, select it by clicking it once
  4. At the bottom of this window you will see your two options to either receive a refund or apply to a different purchase