Hi, hopefully i did not ask the same question posted before. How to I return any inventory item quantity that is not used in the production order? For example:
Item A: 5 pcs
Item B: 10 pcs
Item C: 2 pcs
In fact, for example Item A only used 3 pcs, how do I return the other 2 pcs to my inventory? So that I can make a Purchase Return (Debit Note) in the future?
From a purely functional perspective, you have two possible approaches:
- Edit the production order to record inventory actually used for the bill of materials
- Use a journal entry to write on (add back) the unused inventory item (See https://www.manager.io/guides/20615)
Which you use will depend on:
- Whether the accounting period has been closed yet
- Whether inventory reports have already been produced and distributed (probably related to the point above)
- Legal and accounting standards in your jurisdiction concerning modification of accounting transactions
- Internal workflow practices (such as where the production order has been distributed)
ah, so it should not use Good Receipt. I tried it, and the qty owned messed up.
Noted. Thank you Tut
No, goods receipts complete a purchase activity. They place the quantity of an inventory item purchased into inventory.
So I finally use Journal Entry to return back the unused items, and make Debit Note for them. But why the quantity to receive and on hand are not 0?
Because you have the Goods Receipts tab enabled, but did not enter a negative goods receipt to complete the debit note’s transfer of goods.
If you have not, you should read the three-part Guide on inventory management. Part 2 discusses goods receipts and includes a Note specifically covering this issue. See https://www.manager.io/guides/11128.
If you are not going to use the Goods Receipts tab, you should disable it. Once it is enabled, it must be used for every purchase and return of inventory items.
ah, ok, so the conclusion, as long as i use the Goods Receipts, whenever there is Debit Note created, i need to edit the Goods Receipts accordingly. Noted! thank you so much
Not edit one, but create one to correspond to the debit note.