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Data2021
Level 1
posted
‎June 29, 2022 08:37 AM
last updated ‎June 29, 2022 8:37 AM

Shipping reimbursements to clients, how to record them

Hello, 

I have a doubt. When we send products outside US and if it turns out defective, the client returns the product, pays for the shipping and then when received, we reimburse them this expense. 

How should I register this? Should I record it as a direct sales deduction (lI thought using Reimbursable Expenses or Accounts Receivable but not sure which one is the correct. 

 

Thanks! 

 

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Best answer June 30, 2022
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Best Answers
Rustler
Level 15
‎June 30, 2022 04:01 AM

Shipping reimbursements to clients, how to record them

I would use the sales discount income account as the expense for this.  That will offset total sales income as it should be

 

A/R is a receivable, it does not affect income or expense directly, only the items used on the A/R document affect the income or expense accounts

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1 Comment 1
Rustler
Level 15
‎June 30, 2022 04:01 AM

Shipping reimbursements to clients, how to record them

I would use the sales discount income account as the expense for this.  That will offset total sales income as it should be

 

A/R is a receivable, it does not affect income or expense directly, only the items used on the A/R document affect the income or expense accounts

Reply Join the conversation
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