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kay


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Another stock question!
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Hello all

Can you please help me here.

 

I have a purchase of stock in Jan, but the full invoiced amount was also credited by the supplier in Jan, the product needs to go back.

 

However, the invoice to customer has not been credited yet, as the product has not been returned.

 

This order doesnt show up in any of the reports for stock valuation.

 

So, we would i have to consider this as an outstanding PO in this case and deduct from the stock value?

Or would i put an adjustment journal in where i credit the customer (sales)with the invoice value and debit stock or purchases??? A bit unsure on this one, would love your comments!ThanksK



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MarkS


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HI Kay

Always find it easier to put some numbers to problems.

Say you bought the stock for £100 and sold it for £150.

You will have £nil in your costs of sales as the cost of £100 will have been credited out by the credit note received from the supplier. 

You do however still have the £150 in sales so thats what needs to be got rid off. 

Journal needed is

Dr  Sales £150
Cr Debtor/Bank £150 (will depend if the customer has paid for the sale yet on whether you credit debtors or bank)

No adjustment needed to stock as stock is just a period end adjustment.

Hope this helps.

MarkS

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Mark Stewart CA

http://stewartaccounting.co.uk/

Providing accounting, bookkeeping, payroll and tax services to small and medium sized businesses across Central Scotland and beyond.
kay


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Posts: 20
Date:
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Thank you for your reply Mark!

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