Sage 100

Customer is using Serial Inventory and sells new and used equipment. They will receive in the inventory at $100/each but find afterwards that some of the items are bad, doa, etc. They work with the vendor and agree to a $20/each discount (let's say 2 of 10 are bad, credit is for 2). Because it happens a lot, they don't want to return the PO and Receive it again at the lower price. I suggested taking the credit directly to COGS but Mgmt wants inventory adjusted (have cake and eat it!). Anybody have any suggestions on how to accomplish this?

I'm missing something They receive 10 at $100 each 2 are bad That leaves 8 @ $100/ea Initial: Debit Inventory - $1,000 Credit AP - $1,000 Bad: Debit AP - $ 200 Credit Inventory - $200 Wouldn't they do a ROG on the two bad ones? They don't keep them in inventory - do they? Or is the issue not that they are bad but as used equipment, they are not in the condition specified so this is more of an allowance? 1. ROG 2. Adjust out at original price and then adjust back in at new price

They may leave them in inventory, they may not be in condition specified, may be fixable (in house), so they want the 'bad' ones adjusted to show them @ $80 but don't want to do a Return of Goods and new Receipt of Goods nor do they want to have to do an inventory adjustment. This happens several times/month and could be in large quantities. Yet they want the inventory item to show the correct cost.

Hold off on entering to inventory until they move through an inspection warehouse?

Adjust out with an inventory transaction and adjust back in at new cost? maybe easier than through PO?

Nancy, I've had a lot of customers over the years needing to do exactly this, on occasion. The only way to have inventory reflect the actual cost is to use inventory adjustment transaction to back out the bad serial numbers them put them back in at the discounted cost. It's a pain, but it's typically the only way. That handles the inventory part of the deal. The other part is to adjust the invoice in A/P so you don't overpay.

Thanks everyone, at least I feel better I wasn't missing anything.

On top of everything said, in doing the inventory adjustment - would you not want to receive back in as a new ""-doa"" item to separate from sell-able goods?