Copy items from Credit Note to Inventory Write-offs

Sometimes I get sales returns of goods that are expired or corrupted ( one time I got more than 60 items). They should be entered in Inventory Write-offs. It would be really convenient to just copy everything instead of re-entering them.

edit: typo

Sorry, deleted

why is it deleted?

Becasue it was wrong :frowning:

If you are writing off the returned goods, why not just issue a credit note for the monetary amount and then there would be no need to re-enter the goods in to inventory?

You can simply delete your own posts:



I see your point but I have a few questions:

  1. What should I do If the client asked for a detailed credit note containing the price and qty of returned goods?
  2. How do I calculate the monetary amount without entering the items (especially while having in-line discounts) in the credit note in the first place? Currently, I copy from sales invoice to credit note and make some addition and deletions so it’s just more convenient to copy to inventory write-offs as well.
  3. What if the product is corrupted somehow and can be salvaged or used for a different purpose? Say for example getting rid of the product and reusing the packaging or using the expired product for a different purpose.

edit: typo

Answers to your numbered questions, @BawarYassin:

  1. Do as the customer asks. There is more action behind the scenes from a credit note than just the money. It reverses everything the sales invoice did. So it debits the Inventory - sales income account, credits the Inventory - cost expense account, debits the Inventory on hand asset account, credits the Accounts receivable asset account, and adds quantities back to the inventory count. (This ignores delivery notes.) Only when all that is accomplished can you turn to writing off the damaged goods.

  2. You don’t. Manager does it all for you, as long as you follow the recommendation in the Guide to create the credit note by copying from the sales invoice. The cost of goods adjustments can be complex, depending on what else has happened with that inventory item since the sales invoice was issued. But essentially, Manager will work back towards the correct average cost for goods in inventory after the credit note.

  3. The corrupted or salvaged product will not be the same as what is defined for that inventory item. So you might need a production order to produce a different finished good if something will remain in inventory. Or you may need to use a production order for the repair to restore the corrupted good to normal status. See Use production orders for repairs, maintenance, or improvements | Manager. Proper steps will differ depending on exactly what you do.

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@Tut and @eko, I think I’m being misunderstood here. You advise me to use credit notes properly now (which is what do) but @Joe91 said it is not necessary and I should just issue a credit note for the monetary amount (because the products are expired). My problem with his approach is in the three questions I asked which brings us back to why I made this post. I want to copy from credit notes to inventory write-offs.

Just to add another perspective on this:

  • When the goods are determined to be unsalvageable. Just go ahead and do what @Joe91 suggested. Post everything into the sales allowances account. All the details you need to show can be written manually and there’s no need for all the sales/cogs calculations.

  • If the goods are salvageable. Go with what @Tut advised.

It is usually both at the same time plus items that can be resold directly. So having all of this in a credit note and then writing off the ones I don’t need seems easier for me and my client. Doing as you guys suggest really complicates things more.

I actually understand your original request and support it as it would indeed make things easier. However, in our businesses we would do quality control inclusive of expiry dates before shipping to limit the amount of returns. However, some return their goods and as packaging is opened may need to be sold at less value. We do not write them off only in the rare case when indeed an item was faulty.

In the absence of a copy to write-off from a credit note. You could re-enter the stock by copying the Credit note to a New Purchase Invoice (indeed you need to copy the Customer contact to Supplier contact using customer view screen as it is now a supplier) and assign their new value where applicable and indeed write-off the defected one.

I advised you as I did because you said your customer insisted on a detailed credit note. Additionally, you went on to describe how the items would be reused. Therefore, you need to get them back into your inventory.

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