Customer forfeiture

I have a business that does sales online and physical collection of goods at the store, the customer has to collect within the redemption period, failure to do so will be deemed as forfeited, and no refund to the customer.
now how do I record such forfeiture in manager when an invoice is paid but the inventory is not handed over?

currently, I’m editing the said invoice to post the payment to another account for such an event, but it doesn’t sound quite right as we should not edit a paid invoice but rather use another piece of document to rectify it, hope anyone can offer suggestions, thank you.

You are correct. You should not edit the sales invoice, because it has been issued and receipted for already.

Assuming you are issuing sales invoices, I would use a credit note to record the forfeiture. This can be copied from the sales invoice. However, you must edit the unit price to be zero. This will add the inventory item(s) back into stock without affecting the customer’s Accounts receivable balance or affecting the profit and loss statement. Note that the average cost of the inventory items(s) will be reduced, because the the customer has effectively given you some for free.

If you are selling on a non-credit basis, without sales invoices, I would enter a zero-value payment, as though you were purchasing the inventory item from a supplier (your customer in this case) for no money. It doesn’t really matter which bank or cash account you choose for the payment, since no money will be moved, but it would probably be best to use the same one to which you posted the original receipt.

You could also use a journal entry to write-on the returned quantity. See Write on inventory | Manager. Again, do this at zero value.

Very useful advice, have been issuing credit notes for negotiated returns but wasn’t thinking of the inventory side of stuff, thank you very much!

A brief summary of credit notes is that you use them when the customer returns goods or you return money (or credit). Most frequently, they do both at once.