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Using NetSuite "locations" for returns whacks COGS!

edited Aug 25, 2008 8:53AM in Accounting / ERP 9 comments

Folks,

We initially struggled with how to handle customer returns in NetSuite. We eventually settled on using two additional locations for returned items, in addition to our main location, as follows:

- Open Box
- Damaged

When a customer returns a perfectly fine widget, we issue a credit memo with the location at the line-item level being "Open Box". We eventually fulfill this item from the same location (at a cheap price) to some lucky customer, and so ideally the # of items in the Open Box warehouse is usually zero.

The only problem is that the COGS of all these credit memos is wrong! In fact, Netsuite has created a whole whack of credit memos into (and fulfillments out of) the Open Box warehouse that have no G/L impact on either Cost of Sales or Inventory. Those lines are just missing!

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