cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 1

If an item is returned by a customer, damaged, how do I write it off?

Also if an item is discovered damaged before sale, and is discarded, how do I write it off? I cannot find Inventory Adjustments.
1 Comment
QuickBooks Team

Good day, ["Viki L"]. Let's get to your first question. Y...

Good day, ["Viki L"]. Let's get your questions addressed. 

 

Regarding the first one, you'll have to record a refund receipt. This writes off the bank balance. Here's how:

  1. Click the Plus sign (+) icon.
  2. Select Refund Receipt.
  3. Select the same product/service that the customer returned, and the exact amount of the refund.
  4. Click the Refund From drop-down arrow, then select the bank account.
  5. Click Save and close

Let's move on to the second question. I'll walk you through with creating an inventory adjustment so you can write off the damaged item. Here's how:

  1. Click the Plus sign (+) icon.
  2. Under Other, select Inventory Qty Adjustment.
  3. Add the adjustment date.
  4. Click the Inventory adjustment account drop-down arrow, then select the accurate account.
  5. Select the product,
  6. Enter either a new quantity or a change in quantity.
  7. Click Save

Check this article for more information: How to adjust inventory quantity on hand.

 

As always, I suggest reaching out to your tax adviser on the best way to handle this.

 

Feel free to get back to me if you have other concerns. 

Need to get in touch?

Contact us