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rootlookup
Level 1

Handling a bad purchase

I just started using quickbooks desktop pro 2020.

 

So, I purchased a component that I was intending to resell to a customer.  It had a funky notch on the connector, so I could not use this purchase.  I had to purchase the same item from a different vendor, that I used successfully.

 

How do i handle the original bad purchase?  Right now, I have an item that I have purchased (and can't use), sitting in my inventory in quickbooks.  I would like to create a "bad purchases" account in the chart of accounts, to account for, and track these types of purchases.  So, what type of account do I need to create, and how do I move the bad inventory into this new account?

 

Solved
Best answer August 15, 2020

Best Answers
Rustler
Level 15

Handling a bad purchase

@rootlookup 

 

It all depends on what you will do with the item.

 

If you return it for a refund, enter a vendor credit and send it back.

 

If you trash it, then use inventory adjust, set the adjusting account to COGS-shrinkage and lower the qty.

View solution in original post

3 Comments
gayatriluthfias20
Level 7

Handling a bad purchase

Hi @rootlookup , based on this related post you could use credit memo.  But in my opinion if you need refund from vendor use credit vendor. It's okay too making an account such as bad inventory  or shrinkage inventory as expense (dr shrinkage inventory cr inventory). May others expert comment this.

Comment back, cheers.

Rustler
Level 15

Handling a bad purchase

@rootlookup 

 

It all depends on what you will do with the item.

 

If you return it for a refund, enter a vendor credit and send it back.

 

If you trash it, then use inventory adjust, set the adjusting account to COGS-shrinkage and lower the qty.

View solution in original post

rootlookup
Level 1

Handling a bad purchase

Thank you both for your replies.  I did not realize the inventory adjustment process had an adjustment account option.  That looks exactly like what I was wanting. 

 

Thanks!

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