Navigation:  Key Concepts > Inventory Management > Damaged Products

Vendor Take Backs

As damaged, spoiled, or evidence of stolen stock is discovered you may want to write it off from the stock inventory.

Light Manufacturing

The Quick RMA function can also be used for creating your own inventory from combining products from others.

VENDOR RETURNS FOR CREDIT

QUESTION
How can I return expired or damaged goods to the vendor immediately during the delivery of other items?

ANSWER

Quick RMA - a return to vendor by using a negative quantity value on a purchase order.

When a vendor delivers and removes products for which you will be credited (for example, expired food stuffs), you can add the SKU of the item being removed and enter a negative quantity.  When you process the purchase order, the stock count of your inventory will be dropped by that quantity.

The transaction log of the inventory item (Inventory Center: Stock Manager view: Transaction Log tab) will show history of the transaction.

General Ledger

When doing a Quick RMA, an entry will be made automatically in the General Ledger Journal.

The Inventory account will be Credited and the Purchases Clearing account will be Debited.

Return Items Via Purchase Order for Shrinkage Handling-

One option is to do a "Quick RMA" or reverse purchase order to the true or to a fictitious vendor.  This will reduce you stock count, cost of goods, and give you a paper trail for later reporting and research.

 

ADVANCED SETUP

Go to Vendors and create a Vendor named SHRINKAGE

Fill in fields as needed.in POSitive

Activate VENDOR SKU = YOUR SKU

 

CREATE A QUICK RMA PURCHASE ORDER

1) create a PO for SPOILAGE vendor (Receive Without PO will work)

2) enter the SKU of the spoiled item in the Vendor SKU field and press Enter

--- you will be prompted that it does not exist.

--- choose create

--- make Vendor SKU equal to your SKU (if not already set press F3)

--- For Order Quantity enter a negative number. type -3, for example. This same number will be carried over to the Quantity Received field.

WARNING TIP: do not change COST, otherwise your selling prices of items might get changed automatically.

--- Press F10.

3) repeat step 2 for each item being discarded.

4) process the PO.

 

RESULT

Your inventory stock counts will be reduced.

FYI: At the Inventory List, highlight the item, choose Stock Manager on the left and Transaction Log on the right.

In the Transaction Log you will find an entry titled

-- "Quick RMA To: SPOILAGE...."