Inventory Returns (A/R) GL Account

[Former Member]

What is the purpose of this GL account (Asset Cabinet, Inventory Category). I know that entries are posted when you create either an A/R Return or Credit Memo. The account falls under the Assets and Inventory sub category but it keeps accumulating. Are we suppose to reconcile and move it to the Inventory Finished Goods G/L account or is there another procedure that we are suppose to do.

Regards,

Peter

[Former Member]

Thank you for all your help. We are taking your advise.

[former_member583013]

Peter,

Most times is would be prefered to set the Inventory Returns account same as the Inventory G/L.....

This way the Debits and Credits to the Inventory account are posted automatically to the same account and there is no manual reconciliation required.

I believe you should chage this.....so that the future transaction can post the Inventory G/L

Suda

[former_member186095]

Hi,

Asset drawer or cabinet, inventory category are important and actually it will be needed to accumulate if there is a return or credit memo.

Rgds,