Return of Damaged Goods

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  • Problem
  • Updated 1 year ago
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?
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Adam

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Posted 2 years ago

  • 1
Raise the credit to the customer, then process an inventory adjustment which uses the actual cost.  You are using inventory?
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Stacey Lett

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yes, thanks so much i just had a mind blank and that makes total sense !!