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  13. (Accounting) Return goods from...

(Accounting) Return goods from normal stock

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The following describes the accounting transactions the system creates when you return goods from the normal stock to your supplier.

Standard cost

Prerequisites
The following prerequisites apply if the cost type is Standard cost:

Stock on hand 125
Returned quantity 125
Purchase price 28.25
Standard cost in Item file 50.00

Created transactions

Transaction type Description Amount
Debit		 Amount
Credit		 Calculation/Result/Additional info
901 Stock value   6250.00
Standard cost in Item file * Quantity

50.00 * 125 = 6250.00

This transaction decreases the stock value, using the standard cost value, i.e. the standard cost defined in the Item file is always used.
931 Return to supplier 3531.25  
Purchase price * Quantity

28.25 * 125 = 3531.25

This transaction is the return value which normally is accounted on a purchase account in DC1 Financials.
945 Gain/loss returned goods 2718.75  
Stock value – Return value

6 250 – 3 531.25 = 2718.75

This transaction accounts the difference between the stock value and the return value. In this example it is a loss.

Note: If you account the transaction type 945 on the same account as 901 in DC1 Financials, you can never reconcile the stock valuation list in DC1 Distribution with the amount of this stock account in DC1 Financials. In this example the stock valuation list would show 0 pieces (nothing left in stock), i.e. the amount 0.00. The account in DC1 Financials would show the amount 2718.75. Tip: Transaction type 945 can, for example, be accounted as the transaction type 813. The transaction type 813 is used for price differences in the Invoice matching routine in DC1 Financials. For more information see Overview of accounting transactions during supplier invoice matching.

Average purchase cost

Prerequisites
The following prerequisites apply if the cost type is Average purchase cost:

Returned quantity 125
Purchase price 15.00
Average cost in Item file 12.00

Created transactions

Transaction type Description Amount
Debit		 Amount
Credit		 Calculation/Result/Additional info
901 Stock value   1500.00
Average cost in Item file * Quantity

12.00 * 125 = 1500.00

This transaction decreases the stock value, using the average cost value.
931 Return to supplier 1875.00  
Purchase price * Quantity

15.00 * 125 = 1875.00

This transaction is the return value which normally is accounted on a purchase account in DC1 Financials.
945 Gain/loss returned goods   375.00
Stock value – Return value

1500.00 – 1875.00 = -375.00

This transaction accounts the difference between the stock value and the return value. In this example it is a gain.

Note: If you account the transaction type 945 on the same account as 901 in DC1 Financials, you can never reconcile the stock valuation list in DC1 Distribution with the amount of this stock account in DC1 Financials. In this example the stock valuation list would show 0 pieces (nothing left in stock), i.e. the amount 0.00. The account in DC1 Financials would show the amount -375.00. Tip: Transaction type 945 can, for example, be accounted as the transaction type 813. The transaction type 813 is used for price differences in the Invoice matching routine in DC1 Financials. For more information see Overview of accounting transactions during supplier invoice matching.

FIFO

Prerequisites
The following prerequisites apply if the cost type is FIFO:

Returned quantity 125
Purchase price 15.00

The following FIFO transactions exist in the FIFO file:

Transaction date Price Qty received Qty delivered Remaining qty Stock value
15/10-12 138.00 25.00 5.00 20.00 276.00
31/10-12 138.00 75.00   75.00 1035.00
6/11-12 1475.00 200.00   200.00 2990.00

The following transactions are created:

Transaction type Description Amount
Debit		 Amount
Credit		 Calculation/Result/Additional info
901 Stock value   1759.50
FIFO price on the oldest FIFO transaction * Quantity

(Oldest FIFO transaction): 13.80 * 20 = 276.00
(Second oldest FIFO transaction): 13.80 * 75 = 1035.00
(Most recent FIFO transaction): 14.75 * 30 = 448.50
Total: (125) 1759.50

This transaction decreases the stock value, using the values from the existing FIFO transactions. If the returned quantity is not covered by the oldest FIFO transaction, the price on the second oldest transaction is used for the remaining quantity, etc.
931 Return to supplier 1875.00  
Purchase price * Quantity

15.00 * 125 = 1875.00

This transaction is the return value which normally is accounted on a purchase account in DC1 Financials.
945 Gain/loss returned goods   115.50
Stock value – Return value

1759.50 – 1875.00 = -115.50

This transaction accounts the difference between the stock value and the return value. In this example it is a gain.

Note: If you account the transaction type 945 on the same account as 901 in DC1 Financials, you can never reconcile the stock valuation list in DC1 Distribution with the amount of this stock account in DC1 Financials. Tip: Transaction type 945 can, for example, be accounted as the transaction type 813. The transaction type 813 is used for price differences in the Invoice matching routine in DC1 Financials. For more information see Overview of accounting transactions during supplier invoice matching.

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