Hello, @CCT3556.
This is really hard to encounter such experience in your line of business. However, let me make it easier for you here in QuickBooks. For the damaged amount, you can record a credit memo and apply it when recording a new invoice for the replacement item.
Here's how to create a credit memo:
- Open your QuickBooks Desktop (QBDT), then select Create Credit Memos/Refunds from the Customers tab.
- Fill in the necessary information on the Credit Memo page, then choose to Retain as an available credit.
- Hit OK.
To apply the credit memo to the new invoice, tap on Apply Credits from the Invoice page.
You can also read this article about giving customers a credit memo or refund in QBDT.
On the other hand, you can as well work with a professional account for other ways and options to record these transactions. They can guide you further and help account the entries accordingly.
As always, you can open the topics from this link which contains references about the customer transaction workflows in QBDT.
I've got your back if you have any other questions and I'm happy to answer them for you, @CCT3556. Just add a comment below. Take care!