Sales with Returns: Generated Transactions
To be able to process both a sale and a return of stock items in the same order, you create a mixed order (that is, an order of the MO type) on the Sales Orders (SO301000) form. The following sections describe the GL transactions generated during the processing of the documents for a sale of one stock item and a return of one stock item (that is, a mixed order has one sales line and one return line).
Transactions Generated for a Sales Invoice
If the Order Total of the related mixed order is positive, the system creates and releases a sales invoice with one sales line and one return line (when you click Prepare Invoice on the form toolbar of the Sales Orders (SO301000) form). On release of the invoice, the system generates the following general ledger transactions:
| Account | Source of Account | Debit | Credit |
|---|---|---|---|
| Accounts Receivable account | Customer | Invoice amount | 0.00 |
| Sales account | Mixed order | 0.00 | Sales amount |
| Sales account | Mixed order | Return Amount | 0.00 |
Transactions Generated for a Payment
If the Order Total of the mixed order is positive, you create and release a payment. The system generates the following general ledger transactions:
| Account | Source of Account | Debit | Credit |
|---|---|---|---|
| Cash Account | Payment method | Payment amount | 0.00 |
| Accounts Receivable account | Customer | 0.00 | Payment amount |
Transactions Generated for a Credit Memo
If the Order Total of the mixed order is negative, you create and release a credit memo with one return line (that is, a line with a positive amount) and one sales line (that is, a line with a negative amount). The system generates the following general ledger transactions:
| Account | Source of Account | Debit | Credit |
|---|---|---|---|
| Accounts Receivable account | Customer | 0.00 | Amount |
| Sales account | Mixed order | Return amount | 0.00 |
| Sales account | Mixed order | 0.00 | Sales amount |
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 a Refund
If the Order Total of the mixed order is negative, you create and release a refund. The system generates the following general ledger transactions:
| Account | Source of Account | Debit | Credit |
|---|---|---|---|
| Cash Account | Payment method | 0.00 | Return amount |
| Accounts Receivable account | Customer | Return amount | 0.00 |
Transactions Generated for an Inventory Issue
On release of the sales invoice, the system generates an inventory issue transaction with the line that has the Invoice transaction type. When an inventory issue with one line of the Invoice type is released, the system generates the following general ledger transactions:
| Account | Transaction Type | Source of Account | Debit | Credit |
|---|---|---|---|---|
| Inventory account | Credit Memo | Depends on the settings of the posting class of the item specified on the Posting Classes (IN206000) form) | Cost of the returned item | 0.00 |
| COGS account | Credit Memo | Depends on the settings of the posting class of the item specified on the Posting Classes (IN206000) form) | 0.00 | Cost of the returned item |
| Inventory account | Invoice | Depends on the settings of the posting class of the item specified on the Posting Classes (IN206000) form) | 0.00 | Cost of the sold item |
| COGS account | Invoice | Depends on the settings of the posting class of the item specified on the Posting Classes (IN206000) form) | Cost of the sold item | 0.00 |
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.