The sales return transactions are recorded using the Sales Return Invoice. The information of the return transactions are recorded in the following fields:
- Return Type
- Return Transaction
- Return Cost
The difference of the Sales Return Transactions from other input transactions is that they can affect the cost system in three different ways.
The method to be used is specified on the Return Slip lines, in a manner to be applied only for that material line. The Return Type options and their effects are:
Return Type: This column is used to specify how the return will be done. The Return Type field consists of three options:
- Cost of input/output
- Current cost
- Return cost
When Cost of input/output is selected, the return transaction is related to the sales transaction. In this case, the sales transaction to which the returned material belongs is selected and linked to the relevant inventory line on the Sales Return Slip lines. The Return Transaction field lists the output transactions, and the transaction to which the return operation belongs is selected. From the cost system point of view, the Output Cost of the sales return line is equal to the net sales amount of the sales transaction it is linked to.
The output amount of the sales return line is equalized to the net amount of the sales return. The differences between the output amount and output cost can be tracked as profit or loss in the Cost Analysis reports. From the inventory point of view, the sales returns decrease the cost of the material through the Net Sales Amount of the sales transaction they are linked to. The output amount does not affect the inventory.
When Return Cost is selected, the cost of the returned material can be entered by the user. In this case, the Unit Cost of the returned material is entered by the user into the lines of the Sales Return Slip. From the cost system point of view, the output cost of the sales return line is calculated by multiplying the unit cost entered by the user with the return quantity.
The Output Amount of the sales return line is equalized to the Net Amount of the sales return. The differences between the output amount and output cost can be tracked as profit or loss in the Cost Analysis reports. From the inventory point of view, the purchase returns decrease the inventory cost through the cost entered by the user. The output amount does not affect the inventory.
When Current cost is selected, the Sales Return Slip lines are used to indicate that the unit cost of the returned material will be equal to the current cost. From the cost system point of view, the sales return transaction is considered as the same with any material output transaction (such as Wholesale transaction) and the current unit cost of the material is equalized to the unit cost of the sales return transaction. The output cost is calculated by multiplying the unit cost with the return quantity and the Output Amount of the purchase return line is equalized to the Net Amount of the purchase return. The differences between the Output Amount and Output Cost can be tracked as profit or loss in the Cost Analysis reports. From the inventory point of view, the purchase returns decrease the inventory cost through the current cost calculated as above. The output amount does not affect the inventory.