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J
jroneill
February 10, 2023
Question

Issue credit memo for bad parts

  • February 10, 2023
  • 1 reply
  • 0 views

Hi All! 

 

We are a manufacturer and are looking for the best way to issue a credit to a customer for bad parts. The customer returned a sample part and scrapped the rest (showed us a picture of the scrapped parts). If we issue a credit memo for the part itself, it puts it back in inventory. If we issue some kind of place holder expense account (Returns/bad parts) this wont show up on a master report showing all transactions for the item (to show overall sales numbers). Do we add an extra step and issue a credit for the item and then do an inventory transaction to show the item was scrapped? 

 

Why can't QB just ask if the item should be returned to stock on credit memos. That would just make everything easier. 

    1 reply

    M
    Mich_S
    February 10, 2023

    I understand this isn't an easy process for you, @jroneill. I'm here to make sure you can properly track the bad parts your customer has returned.

     

    You can record the returned items as a credit memo. However, this step will replenish the quantity of those items, so you need to adjust their quantities afterward. Here's how to issue a credit memo:

     

    1. Go to the Customers menu and select Create Credit Memos/Refunds.
    2. Select the customer's name from the Customer: Job drop-down.
    3. Make sure to select the right items, quantity, and amount.
    4. Fill out all other necessary information.
    5. Once done, click on Save & Close.

     

    After that, follow these steps to adjust the quantity on hand.

     

    1. Add an inventory adjustment account.
    2. Perform the inventory adjustment.
    3. Ensure your inventory status is accurate.

     

    See this module for the detailed steps: Adjust your inventory quantity or value in QuickBooks Desktop.

     

    I've also attached some snapshots for your reference.

     

     

     

    Lastly, browse this article for more information in case you want to personalize reports in QBDT: Customize reports in QuickBooks Desktop.

     

    You can always fill me in if you need anything else about credit memos, inventories, or QuickBooks in general. Just leave a reply below so we can respond as soon as we can. Stay safe.

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