Sage 100

RMA Scrap Warehouse Sage v2014 Advanced. I can't believe I haven't run into this issue before. When a customer returns a damaged item and it's sent to scrap in RMA, the system correctly posts a credit to COGS and debits the RMA scrap account. However it also puts the item into a scrap warehouse. In this case, warehouse ZZZ. At this point the item will appear on an inventory valuation report. On the knowledgebase, you can zero out the scrap warehouse - but TURN OFF the GL integration. Otherwise you will get an erroneous credit to inventory, and debit to physical count adjustments. Really? This is considered OK?

In someone's out-of-touch-with-reality world, perhaps.

Jon do you have a link to the Sage KB on this? I could see putting the item into a scrap warehouse but seems like it should be at zero cost.

We follow the model of the ABC demo data, where the scrap account is an inventory account, not an expense account.

The knowledgebase article is ID61678. https://support.na.sage.com/selfservice/viewdocument.do?externalID=61678 . The idea is to have an expense account for damaged or scrap goods so using an inventory asset account will not work either. When RMA action is scrap, the GL entry credits COGS and debits the scrap account. But it also puts the items into inventory at the original cost into the scrap warehouse. Then if you zero out the scrap warehouse as per 61678, you need to turn off the integration to GL. Otherwise you will get an entry that credits the inventory account (per the product line) and debits physical count adjustments. The result is, no matter what account you use, the GL will never come out right.