Receive Returned Inventory

[srhcpa]

As a distributor we receive defective inventory from our customers' customers - we call them "end users". This affects COGS only and has zero sales effect basically we are basically swapping inventory.

What would be the best way to receive this inventory in?

Should I use purchase/receive inventory or sales/invoicing, or does it matter?

In sales invoicing I would enter a negative amount of inventory and in Purch/Rec I would enter a positive amount of inventory.

Thanks,

Steve

[LauraG]

I would show it as a Customer return.

[rick Prindivill]

You can also use Customer Credit Memo's to list the return to inventory.