From time to time you may need to adjust your stock balances for returned goods etc. You can enter such adjustments in the Goods Receipt register. This method will be useful for goods that are being returned where there was no original Sales Order (i.e. there was an Invoice only). In this case, entering and approving the Credit Note will not usually update stock levels because of the difficulty of obtaining a correct stock valuation. Instead, you should return the goods to stock using a Goods Receipt. Take care to enter the correct cost prices, in agreement with the stock valuation method (Cost Model) you have selected: you will probably need to find out the true value of the Item from flip C of the original Invoice. The stock valuation in the Nominal Ledger will be updated from the Goods Receipt.

The entering of Credit Notes is described here while a discussion of the stock implications of Credit Notes can be found here. Cost accounting is described here. If there is an original Sales Order, the stock implications of a return are catered for using the Returned Goods register.

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