Ledger Entries for Returns, Delete Lost item and Recounts

[M1EnterpriseTech]

Ledger Entries for Returns, Delete Lost item and Recounts

I went to an inventory material card and returned a part and the entries are as follows:

• Credit to the Inventory Item asset ledger account
• Debit to Returned Items ledger account
Then I went to the Purchases module | Returned Items | Items to be returned and created the Returned Item Credit Slip:

No ledger entries

Then I went to the Returned Item Credit Slip and Posted ( post options are Payable, Credit Card & Bank Account) I posted to the Payable and the ledger entries are as follows:

• Credit to the Returned Items asset ledger account
• Debit to the Payable ledger account
Then I went to the Payable and posted a payment and the returned item credit slip which created the following entries
:
• Credit to the Checking Account asset ledger account
• Debit to Payable for the Payment not the return $ amount
This time I returned the part to RGB and creating the Credit to the Inventory Item Ledger account and Debit to Returned Items ledger account then Deleted Lost Item which created the following entries:

• Credit to the Returned Items asset ledger account
• Debit to the Material Cost expense ( user defined adjustment account) ledger account
Note the offsetting entry is user defined consisting of a couple of income accounts ( Labor Sales, Material Sales, etc and most expense accounts) I chose Material Cost expense account as my Adjustment account

Recounts are as follows:

Recount Up to increate Qty of stock produced the following entries:

• Debit to the Inventory Item asset ledger account
• Credit to the Inventory Adjustments(Recounts) expense ledger account
Recount Down

• Credit to the Inventory Item asset ledger account
• Debit to the Inventory Adjustments(Recounts) expense ledger account