@mikelu9661 wrote:
Hello,
I have my product expense account to "Cost of Good Sold" & inventory as "inventory asset" when creating the product/service. Then PO/Expense it out using that product. Month later, i got a credit/discount from the same vendor, without having to return the item they gave me a price match discount since i paid a much higher price at the time of ordering. My question is the credit within the credit card bank feed. I notice making a credit card credit would not work since you need to input a qty higher then 0 which mines has nothing returned, so only other way out i can think of is just categorizing it within the feed without a match.
"How to record credit/refund back from inventory purchase"
Great question!
What you need to do is edit your original entry.
Let's say for this example, you paid $1,000 total for inventory items.
And now, they gave you a $200 credit/refund. Your new net cost is $800.
Go back to your original entry and make an adjustment:
- Item Details section = $800 total for inventory items (this is your revised new inventory cost)
- Category Details section = $200 for refund/receivable from Vendor (create a new account. Account and Detail type = Other Current Assets. Name something like Credit/Refund Receivable.)
- You originally paid = $1000
This entry shows although you originally paid $1,000, $800 for purchased items and vendor owes you $200.
"My question is the credit within the credit card bank feed"
Use New account "Credit/Refund Receivable" for $200 in this example. That account should have zero balance with "in and out" transactions now.
Hope this helps!
