Return of Damaged Goods

Adam_7542761
Adam_7542761 Member Posts: 15 Novice Member Novice Member
edited October 2024 in Accounts Hosted
I'm a food wholesaler and frequently have products damaged in transit by the courier companies. I need to issue my customers a credit note for these products. At the moment I have a 'breakage' account which is a debit account against income/sales. However, the value of the breakages is based on my wholesale price not on my cost, so my breakages value looks higher  than it actually is. How do I correct this?

Comments

  • Jacqui Allen
    Jacqui Allen Member Posts: 239 Reckoner Reckoner
    edited April 2017
    Raise the credit to the customer, then process an inventory adjustment which uses the actual cost.  You are using inventory?
  • Stacey Lett
    Stacey Lett Member Posts: 19 Novice Member Novice Member
    edited July 2018
    yes, thanks so much i just had a mind blank and that makes total sense !! 
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