Stand alone sales A/R return

[former_member218051]

Hello Experts,

Why system did not pass a journal entry in case of stand alone sale A/R return document.

We have a chain

Sales Order --> A/R Delivery --> A/R Invoice.

Because invoice got closed. We punched a stand alone return document and then punched A/R Credit Memo.

In the return document there is no journal entry passed so the item cost in the audit report is zero.

Thanks in advance.

[Former Member · Accepted solution]

Hi,

The recommended procedure to handle this is: to create a standard credit memo only without creating sales return. This will solve your problem.

Thanks,

Gordon

[former_member662620 · Accepted solution]

Hi All,

In my option, all of above answers are somehow correct. I would like to summarize it.

Basically when you create standalone Return, this document only affects sales returns account and COGS account. But how to caculate the value which is returned? Currently by default B1 will use current cost of this item as the return cost. In your case, current item cost is zero, so that return value is caculated as zero. That's why there is no posting in your return.

Regarding standalone AR credit memo, it will affect account receiable for BP, revenue account and tax account. It also affects COGS and sales return account which is same as standalone credit memo.

Back to you case, if you create standalone AR credit memo, it will create a posting. But the posting only affect AR for BP and revenue account. Your sales return account is still not posted.

Finally, there are two ways to solve your problem.

1. You can just create standalone return or AP credit memo. Later you can reset the item cost via MRV suggested by Hafeez.

2. If you are using version 8.82 or above, you can use a new feature which enable you set item cost in return directly. You can find the setting in document setting->per Document  table-> return

[azeemhafeez]

Hi Samant,

You have to write Item Cost for the items for which there is no cost record in SAP. So therefore while posting stand alone AR Sale Return document, you should have written the item cost for the respective items. Due to unavailability of the item cost, SAP entered these items with zero cost and thus posted no JE for this transaction.

For correction you have to go to Inventory--->Inventory Transactions--->Inventory Revaluation. Here select Revaluation Type as "Price Change" and then select the item(s) along with its respective warehouse and quantity. In below area write down new price (item cost) for the items and post it. The Stock accounts of the respective items would be debited and the G/L increase account would be credited in the transaction. After posting this the cost of affected items would be correct now.

Hope this would help you in solving the problem.

Regards,

Azeem

[kothandaraman_nagarajan]

Hi,

How did you closed above invoice?

Thanks & Regards,

Nagarajan

[former_member218051]

Hi,

due to payment it got closed implicitly.

Thanks

[jitin_chawla]

Hi,

Can you please check in the Stock Audit Report whether there was an Item Cost prior to adding the return document in the system?

Kind regards,

Jitin

SAP Business One Forum Team

[former_member218051]

Hello Jitin,

Yes, the item was revalued at zero cost. After that a stand alone return was punched and it was copied to A/R credit memo. But A/R credit memo is not appearing in the audit report.

Thanking You

Pradnya

[Former Member]

Hi,

As the item Cost was revalued to zero, in return doc SAP took the stock in warehouse with zero cost and hence though the qty increased, no JE was passed.  When you created a A/R Credit Memo, JE will be  passed which will correct the BP account and the revenue account only as through return the inventory was already taken care.

In the Inventory Audit report, you will only see the 'Return' entry with zero amount and only the 'cumulative qty' will be updated. A/R Credit Memo entry will not be displayed.

Hope that helps.

Thanks,

Priya