How to deal with damaged goods being replaced by your supplier.
Ensure you have a damaged goods expense account.
Create a negative purchase order.
Create a journal entry crediting inventory and debiting damaged goods expense account.
Return the goods to the supplier.
When the goods arrive, create a new purchase order or receiving report to bring the stock back into inventory.
Video source: speedy:damagedgoods-beingreplacedbysupplier1010140841.flv
Created by Sharon Brum at 10/14/2010 8:41:43 AM