Manually modyfying income statements is frowned upon in IRS circles iirc...

A return might be coded as a negative sale. Or as a sort of purchase.
Depends on the way your accounts and schemes are set up.

Does the A/R for this customer look ok to you?

*J/E Sale: *

A/R debit, inventory credit, COGS debit, income credit.

So in case of a *return *WOULD seem logical for the J/E to be the other way
round.:

*J/E Return *

A/R credit, inventory debit, Cogs credit, income debit.

Since you mention the income debit is not to be found, I suppose the
'system' may see it as a sort of purchase.
Or at least the 'system' is not behaving as one would expect and like.

I suggest you search in A/P to find the missing journal entry, probably also
linked to COGS.
It must be somewhere, or you wpuld have received a 'does not balance'
warning somwhere along the line.

Look at the bright side: if the COGS is too high and the sales is too high
as well, the net result is correct.


Hth,

Paul


2011/5/17 Jeff Kaminsky <[email protected]>

> When I have a customer return something, its not recording in the income
> statement.
>
> For instance, we recently gave a 2400 credit on returned merchandise (and
> sales tax too).
>
> The sales tax account recorded properly, the cost of goods sold and
> inventory we also hit, but our sales for that month were not reduced by the
> appropriate amount.  Has anyone run into this before, and what did you do? I
> was thinking of modifying the income statement, but it seems to be hard
> coded in the software.
>
>
> --
>
> Jeff Kaminsky
> Sr. Accountant
> IX Systems
> 408-943-4100 ext 122
>
> _______________________________________________
> SQL-Ledger mailing list
> [email protected]
> http://lists.ledger123.com/mailman/listinfo/sql-ledger
>
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