This is the Part-2 of the sales return order series where we are talking about disposition codes and its impact on inventory and financials.
If you have not visited Part-1, the click here to read.
Now in this blog we are going to talk about Disposition Action Scrap: As per this disposition action we must scrap the item and give credit to customer.
Let’s understand the scenario:
Customer US001 purchases item A0001, 1 quantity now due to some defects customer would like to return the product and want the money back.
Now when we do return for this transaction, we are supposed to have following financial entry:
On posting Credit note:
Now since we are using Scrap disposition code, this will post scrap entry in system:
Inventory Loss/gain (Scrap) Debit
Create return order
Create Item arrival
Note: This is optional , If we do not have use warehouse management process enabled at storage dimensions. We can skip and directly do registration and post packing slip
Add disposition code and post item arrival
Post packing slip
Post credit note
View Credit note transactions
View scrap transaction
That’s it for this blog. Hope this helps you .
Thank you !!! Keep reading and sharing !!!