How to manage payments entries for returned products?
We are facing a few difficulties in making an entry for a eCommerce Channel. The scenario is below. 1. Seller sold a product of invoice amount 412 to a Customer through Amazon.(In QuickBooks, we will be creating a invoice of amount 412 under Amazon as Customer) 2. Amazon made a payment to the Seller with following breakups.Total transferred amount of 243.71 and Amazon commission of 168.29.(In Quickbooks, we will be creating a Journal Entry of 168.29. Amazon Commission Account Debit of 168.29 and Account Receivable Credit of 168.29. We will create a Receive Payment entry by attaching the invoice and journal entry created above.) 3. The same product will be returned to the seller by the customer. 4. Again for the returned product, Amazon pays a total of -456.11(i.e, deducts from seller account) with following breakups. Amazon commission of -168.29, Penalty charges of 212.4.
If there are no returned products, the solution of 1 and 2 works fine. Kindly suggest us on how to manage returned products and their payments(3 and 4.)
Thank you for the detailed question, @lynda and I hope that we captured the specifics correctly and that this quick video will help you out!
Lynda has more experience with eCommerce transactions, but I wanted to thank you for the good little puzzler and learning lesson for me as well! I must say, your question makes me think twice about returning items online, it seems the only person it really hurts are the small business owners!
Hey, let us know if you have any additional questions, or if we can help somehow!