I deal with waived returns where the item is kept or destroyed by customer/sales channel. In order to show Sales Return (contra revenue) and Loss on Waived Return (expense), I’m doing:
- Purchase Invoice to record the return (because my Customer issues bills for each return instead of simply deducting from remittance) as Sales Return
- Inventory Write-Off with negative qty allocated to Inventory - Cost to offset the original COGS on the Sales Invoice
- Inventory Write-Off with positive qty allocated to Loss on Waived Return
It appears most transactions in Manager.io are allocated to an account at the transaction line level, except for Inventory Write-Off.
If the Inventory Write-Off function would allow the allocation at the line level instead of the entire transaction, it would:
- Cut the number of entries by half
- Solve the problem with tracking the pair of Inventory Write-off transactions. It would also make it much easier to understand why the transaction was created.
Make it look like this:
Why don’t I just use Credit Note? because Manager:
- automatically debits revenue, removing the distinction between gross and contra-revenue
- automatically returns the item to inventory
The first feature would require a Journal Entry to reverse the netting, the second feature requires the 2 Inventory Write-Off to show the reduction in COGS and increase in expense.
What I’m doing would be unnecessary if Credit Notes allowed manual allocation on inventory item and offered a toggle on automatic inventory reversal. As is, I think changing the UI of the Inventory Write-Off is a much easier method to lessening this problem.