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Nominal Ledger Transactions from Returns

When you approve and save a Returned Goods record, a Nominal Ledger Transaction will be generated automatically if you have so determined in the Sub Systems setting in the Nominal Ledger and in the Number Series - Returned Goods setting, and if at least one of the Items on the Return is a Stocked Item (or a Plain Item if you are using the Cost Accounting for Plain Items option in the Cost Accounting setting).

The Stock Account debited by such Transactions is determined as follows:

  1. The Stock Account for the specified Location will be debited.

  2. If this is blank or if you have not specified a Location, and if you are using the Use Item Groups for Cost Accounts option in the Cost Accounting setting, the Stock Account for the Item Group to which the Item belongs will be debited.

  3. In all other cases, the Stock Account in the Account Usage Stock setting will be debited.
The Cost of Sales or Returned Goods Account credited by such Transactions is determined as follows:
  1. The Cost Account for the Item will be credited.

  2. If this is blank and you are using the Use Item Groups for Cost Accounts option in the Cost Accounting setting, the Cost Account for the Item Group to which the Item belongs will be credited.

  3. In all other cases, the Returned Goods Account specified in the Account Usage Stock setting will be credited.

  4. If the Returned Goods Account is blank, the Cost Account specified on Account Usage Stock setting will be credited.
If there are any Extra Costs, these will be posted to the Extra Costs Account specified in the Account Usage Stock setting.

Any Objects in the Return (both those on the 'Currency' card representing the Customer and the Salesman and those on flip B of the 'Items' card representing the Item) will be assigned to the credit posting to the Cost of Sales or Returned Goods Account.

Below is shown an example of a Nominal Ledger Transaction created from a Return:

If you are using the Negative Amounts option in the Transaction Settings setting in the Nominal Ledger, the Transaction will be slightly different, with negative amounts being credited to the Stock Account and debited to the Cost of Sales or Returned Goods Account.

Once the Transaction has been generated, you can look at it straight away using the 'Open NL Transaction' function on the Operations menu (subject to access rights set in the Access Groups setting in the System module).