Re: Thoughts on Voiding Invoices

["Chris Travers" <..hidden..>]

Here is what I am thinking-- I have done this before for another
customer mostly, but this would require some revisions:

Invoices that are posted have no post button, but have a "void" button
and a "returns" button.

If you click "void" the invoice is flagges for further review and a
new invoice is created which reverses the the inventory, cogs numbers,
etc. The purchase is assumed to be extremely recent, so the cogs
numbers are taken from the most recent purchases.  I can't think of
any situation where this will get you in trouble so I am going to
stick with it. (In those cases where the workflow is sufficiently
broken to create problems, the void and original invoice are flagged
so an accountant can easily spot the problem.)  Note though that under
certain circumstances the reversed COGS numbers will be different than
the actual invocied COGS numbers if a lot of invoices are issued at
once and then one in the middle was voided.

A returns button will bring up a new invoice with all the parts as
negative.  THe clerk then adjusts he number of the parts and creates a
new invoice.  These parts are bought back at last cost, and the
invoices flagged for easy review.  Long-term, we probably want to have
additional logic that prevents multiple returns of the same item, but
baby steps are best.

Best Wishes,
Chris Travers

On 9/23/06, Joshua D. Drake <..hidden..> wrote:
> David Tangye wrote:
> > On Fri, 2006-09-22 at 22:20 -0400, Alejandro Imass wrote:
> >> If the company uses "notes of credit" as we call them here, then the
> >> merchandise should return at last cost (it's like buying the
> >> merchandise).
> > Hmm that is interesting. I do not think business people I know would
> > 'buy back' at last cost if the the item in question originally cost
> > less. They would more likely buy back at the lowest price, but it would
> > be a business decision based on balancing goodwill against the profit
> > imperative. Either way I am pretty sure that it is not an issue of
> > accounting best practices at all.
>
> If I purchase something from vendor a, and then return it, I expect to
> get the exact amount of the purchase back.
>
> The only exception to that is in the case of restock fees which some
> vendors charge.
>
> Joshua D. Drake
>
>
> >
> >
> >
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