How to track a defective item that is sent back to the supplier for replacement where the supplier gives you a credit for the shipping charges you incurred to return the defective item.
You create an "Out-on-RMA" transaction to track the defective item sent back to the supplier. When the replacement item is returned, you edit this Out-on-RMA transaction to put in back into available stock. You invoice the supplier for the amount of freight costs and post it at the same time as a credit to your freight/shipping expense account. This is then moved from A/R to A/P via the CONTRA option in Accounts Payable.
The following tutorial explains the steps of this process.
Video source: training:rma_replacement_item_freight_cost_credit_by_supplier0809050709.flv
Created by Harry Czerednikow at 9/5/2008 7:09:22 AM