I was considering the income statement to be in error. If a sales
invoice increases sales, increases cogs, and decreases inventory and
increases accounts receivable, then I am happy. Now when I do a return,
and I see that cogs decreases but sales does not, and inventory
increases and accounts receivable is decreased. I am thinking that
someone left something important off the code to the income statement.
I have some more testing, such as... what if I return the items inside
of a regular sales invoice so that the final balance is still 0 or
another positive number. Will it behave appropriately? Who knows.
Jeff
On 5/17/2011 1:14 PM, Paul Tammes wrote:
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] <mailto:[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
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--
Jeff Kaminsky
Sr. Accountant
IX Systems
408-943-4100 ext 122
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