Vendors sometimes offer to buy back product at the end of the season. Often the product never leaves the premises, but a credit is issued for the product. The vendor then re-bills the product next season.
How to Handle Inventory Protection
- Enter a negative quantity Direct Purchase Invoice with the cost being credited from the vendor. This enters a credit unpaid bill in A/P Bills and takes the product out of inventory. If the product is being returned, this is the end of the process.
- Generally, one of the following situations occurs with the inventory:
- The product is returned and a check is received for it. In this case, when the check is received, select the credit invoice at the A/P / Pay Bill screen, and with the Memo Check option selected and Checking Account set to the Cash on Hand (Undeposited Cash) account, choose OK.
- The product is kept in the warehouse. Enter a positive quantity Purchase Receipt which brings the product back into the inventory on hand, but not company-owned. Later, when the invoice for the product is received, process the receipt at the Purchase Invoice screen.
