Direct Returns: Generated Transactions
To be able to process a direct return of stock items, you create and process a credit memo, which is an invoice of the Credit Memo type on the Invoices (SO303000) form. The following sections describe the GL transactions generated during the complete processing of a credit memo with a return line.
Transactions Generated for a Credit Memo
When you create and release a credit memo with one return line (that is, a line with a positive amount), the system generates the following general ledger transactions.
| Account | Source of Account | Debit | Credit |
|---|---|---|---|
| Accounts Receivable account | Customer | 0.00 | Amount |
| Sales account | Item | Amount | 0.00 |
You can view the reference number of the GL batch in the Batch Nbr. box on the Financial tab of the Invoices (SO303000) form. You can click the link in this box to view the details of the batch on the Journal Transactions (GL301000) form.
Transactions Generated for an Inventory Issue
On release of the credit memo, the system generates an inventory issue transaction with return lines of the Credit Memo transaction type. When an inventory issue with one line of the Credit Memo type is released, the system generates the following general ledger transactions.
| Account | Source of Account | Debit | Credit |
|---|---|---|---|
| Inventory account | Item | Amount | 0.00 |
| COGS account | Item | 0.00 | Amount |
You can view the reference number of the GL batch in the Batch Nbr. box on the Financial tab of the Issues (IN302000) form. You can click the link in this box to view the details of the batch on the Journal Transactions (GL301000) form.