So, I deal in aquarium fish. I purchased from the supplier and paid the invoice prior to shipment. Some of the fish arrived dead, so I photograph and claim the DOA’s. The supplier issues a credit for future use on next purchase.
How do I reflect this in manager without it showing up as an asset? Then how do I use this this credit as in manager to show as payment on the next purchase invoice from the same supplier? No stock is returned and obviously it can’t be shown as available inventory so I am guessing this should be written off…does that sound right?
I am new to account keeping so please keep instructions/explanation simple.
Supplier credits show as assets because they are. Nothing you do or want will change that.
DOAs can be handled via Debit Notes.
Supplier credits are applied automatically to future purchase invoices.
But it is an asset.
Open a new Debit Note. Select the supplier, fill in the details (“dead guppies, 2 @ $10.00”), and either apply it against an open purchase invoice or don’t. If not applied to an existing invoice, the amount will show up as an asset under Supplier credits; the next time you enter a purchase invoice from the same supplier, the credit will be automatically applied against it.
Thank you…I’ll try it out…