Here's what looks like happens if the $5 LC is freight:
Receipt Of Goods
Debit Inventory $105
Credit Purchases clearing $100
Credit Freight $5 (defined in landed cost maintenance).
Return of Goods
Debit Purchases clearing $100
Debit PO Variance adjustment (defined in product line maintenance) $5
Credit Inventory $105
Summary - overall the inventory and the costs results in correct inventory and correct GP... HOWEVER, you MAY need / want to reclassify the amount in PO Variance Adjustment to the Freight account. The freight account is defined in landed cost maintenance and the PO variance account is defined in product line maintenance. Technically, Sage should have coded the program to get the GL account on the return of goods from landec cost maintenance not from product line maintenance.
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Doug Higgs
Assistant Technical Support / Building Maintenance Specialist
Midwest Commerce Solutions, Inc
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Original Message:
Sent: 07-24-2019 09:39
From: Jeff Schwenk
Subject: Return of Goods
Well if the PO cost was $100 and landed freight was $5, then inventory should be relieved for $105. The big question is whether purchases clearing will show $100 and landed cost offset show $5. Not sure if Sage is that tightly written based on prior experience. Would love to be pleasantly surprised.
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Jeff Schwenk
FORMER 90M Board Member
Bottomline Software, Inc.
Waynesboro VA
540-221-4444
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Original Message:
Sent: 07-24-2019 09:22
From: Doug Higgs
Subject: Return of Goods
It looks like with FIFO and LIFO the inventory is reduced by the landed cost amount on the return. No need for a journal entry, The DTR reflects the correct inventory reduction.
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Doug Higgs
Assistant Technical Support / Building Maintenance Specialist
Midwest Commerce Solutions, Inc