When your customers return your items back due to damage, an OE credit note is the best way to credit your customer's account. This credit needs to be recorded correctly to the damaged goods GL account. If your OE Credit Notes are not posting to the correct GL account, follow the procedure below to correct the system.
1 - Make sure you are recording the OE credit note correctly. When issuing a credit note, take care to select "Damaged Items" in the Credit Type column (in the OE detail grid).
2 - Check that the correct GL account is selected for Damaged Goods in IC.
- Navigate to Inventory Control module.
- Open the Categories icon under IC setup.
- Use the Magnifying glass to search for the item's Category and select. Here the General ledger accounts for this Category is defined. One of the fields on this window is "Damaged Goods". Please set this field to reflect the correct GL Account where you want to record your losses due to damaged goods.
- Save and close the window.
Next time there is a OE Credit Note due to damaged items, it will get posted to the correct account.