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How to account for freight carrier damage of fulfilled sales orders?
Hi Everyone,
What is the best way to account for customer shipments damaged by a freight carrier:
-Original sales order is fulfilled and invoiced. Customer payment is applied to invoice and invoice is paid in full.
-Freight carrier damages part of the order in transit.
-Normally anything damaged by the freight carrier is not sent back by the customer but occasionally it is and can be reentered into inventory.
-A new item is sent to the customer to make the customer whole.
-The freight carrier sends checks for items damaged in transit rather than taking having us take vendor credits in these cases. That's just how they do it and won't change it.
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