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Lenny G
July 15, 2022
Question

Posting gift card credits and adjusting inventory

  • July 15, 2022
  • 1 reply
  • 0 views

Enterprise 40 user. I purchase discounted gift cards that I purchase inventory with along with checks, cash and credit cards.  My stumble is returns that I am issued a merchandise credit. I set up the gift card account like a bank account.  Here is my puzzle. If I purchase inventory and have a return that I am issued a merchandise credit back for, how do I remove the item from inventory while crediting my gift card account?  I take the gift card and credit the gift card account and debit the inventory asset account for a balance but how do I connect the the whole enchilada return credit to remove the item from inventory without doing a manual adjustment. I see a couple of threads that say push the plus ( not on my system) and connect the credit to the deposit. Has to be simple way.  

So buy X and pay for it and it now is in inventory. Return it. Credit my gift card/merchandise credit account. How do I account for the inventory not there any more?

1 reply

MaryLandT
MaryLandT
July 15, 2022

I'm glad to provide the steps on how to record the returned inventory you've purchased, Lenny G.

 

The first thing you need to do is deposit the merchandise credit you receive from the supplier. Here's how:

 

  1. Go to the Banking menu, then select Make Deposits.
  2. If the Payments to Deposit window appears, select OK.
  3. In the Make Deposits window, select the Received from drop-down and choose the vendor who sent you the refund.
  4. In the From Account drop-down, select the appropriate Accounts Payable account.
  5. In the Amount column, enter the actual amount of the Vendor check.
  6. Enter the remaining information in the Deposit.
  7. Click Save & Close.

 

Second, enter a Bill Credit for the returned items. Make sure to select the item you've purchased so you won't have to manually adjust your inventory.

 

  1. Go to the Vendors menu, then select Enter Bills.
  2. Select the Credit radio button to account for the return of goods.
  3. Enter the Vendor name.
  4. Select the Items Tab and enter the returned items with the same amounts as the refund check. 
  5. Click Save & Close.

 

Lastly, link the deposit to the Bill Credit. Here are the steps you can follow.

 

  1. Go to the Vendors menu, then select Pay Bills.
  2. Check the Deposit that matches the Vendor check amount.
  3. Select Set Credits and apply the Bill Credit you created earlier then select Done.
  4. Click Pay Selected Bills, then select Done.

 

In case you need a reference to the process, I'm adding this article for you: Record a vendor refund in QuickBooks Desktop.

 

To ensure you're recording what you've purchased, you can follow the workflow through these articles.

 

 

Stay in touch with me if you need anything else with recording the returned inventory item. Just leave a comment below and I'll get back to you.

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