[Kyle Malone, CPA]

We received inventory & later received a credit memo for the receipt.  We’ve already sold some of the inventory, attached landed cost, etc.

How do we…

– Reduce the inventory value (not the qty)

– Associate the credit memo with the inventory value reduction?

Is this doable with a single process or are we going to have to re-value our inventory using inventory adjustments & then book the credit memo to the vendor separately?

Thanks in advance,

Kyle

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Kyle Malone, CPA
GP Admin – CGB Enterprises, Inc.
Lead Consultant/Blogger – http://ALaCarteGP.com
Chapter Leader – Louisiana (New Orleans)
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[Joseph C. Markovich]

Hi Kyle-

I think you are going to have to do this in two steps since some of the inventory has been sold and you don’t want to affect any quantities still on hand.

You could use the Adjust Costs utility to adjust the inventory to the correct unit cost based on the credit from the vendor. That will reduce COGS and then debit whatever the inventory offset account is.

Then when entering the credit memo in AP — credit this inventory offset account so they wash.

-Joe

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Joseph C. Markovich
IT Manager
Okaya Electric America
Valparaiso IN
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[Kyle Malone, CPA]

Thanks Joe.  Our base unit of measure is different than what we receive in plus we have tons of landed costs associated w/ the stock receipt so it looks like the adjust unit costs utility would be tough to calculate properly.

We ended up being in a decent enough situation to take all inventory out, put it back in at the lower cost & then book a standard credit memo as you’ve proposed.

Thanks again,
Kyle

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Kyle Malone, CPA
GP Admin – CGB Enterprises, Inc.
Lead Consultant/Blogger – http://ALaCarteGP.com
Chapter Leader – Louisiana (New Orleans)
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