Re: [SL] How to apply a discount/credit given to a supplier order?

[<sql...@li...>]

Totally clear, and original advice still stands, especially with the  
profit difference apparently being a whole $25-$50.  Now if you were  
talking thousands or millions of dollars then of course it would be  
worth pursuing, but you'll be spending tens or even hundreds of  
dollars worth of your time to save literally just a couple dollars in  
taxes.  As far as reporting COGS etc, the fact is your COGS will  
actually be accurate(!), and the rest will even out over a fairly  
short period of time if you're doing any volume of business at all.
    Or, to put it another way, "don't worry about it".  :)


Thanks,

Michael



On Jul 12, 2009, at 9:15 PM, sql...@li...  
wrote:

Well its not $200 in profit. My COGS is $200. My profit might be only
$25-$50.
My question is how do I enter this whole "discount" that was given to me
without it affecting the cost of the products I purchased.

For example if I purchased the following:

item 1 = 50
item 2 = 25
item 3 = 10
item 4 = 50
item 5 = 65
credit = 50
subtotal = $200
after credit = $150

Of course I dont have an item called "credit" or what I am asking is how
do I enter that credit for $50.

I can of course pretend the price of all of the items is lower and
somehow make them total to $150, but thats not the right way since it
would affect my reports in COGS, profit, etc.

Say the following:

item 1 = 40
item 2 = 15
item 3 = 10
item 4 = 45
item 5 = 40
credit = will not enter it since we're dropping the price of everything.
subtotal = $150
total = $150

This will in a way solve the problem, but I really do not think this is
the correct way to approach the problem.

Am I making my point clear, or am I confusing you?


On Sun, 2009-07-12 at 20:59 -0700,
sql...@li... wrote:
> Technically, the credit belongs to the old entity.  But of course
> you've probably already closed the books, filed taxes etc. so...
>     Considering the only real impact is the tax etc on the $200
> "profit", I rather suspect you'll find that the value of your time,
> (or your accountant's), handling this the "right" way, far exceeds
> the minor additional expense in taxes if you just enter it in the
> system at the actual cost.
>     Just a thought.  :)
>
>
> Thanks,
>
> Michael
>
>
> On Jul 12, 2009, at 6:59 PM, sql...@li...
> wrote:
>
> I used to order from a this provider some products through a previous
> company account I had with them.
>
> I created a new entity and informed the supplier of this. Instead of
> them making me a new account on their end, they just renamed my old  
> one
> to keep the history and such.
>
> However in the previous company I had requested I get issued some  
> credit
> for some items that arrived bad. They apparently did a whole  
> inspection
> that took a while perhaps to get refunded from the manufacturer
> themselves. I had totally forgotten about this credit honestly.
>
> The other day I place an order and the representative told me he  
> finally
> applied that credit he owed me on my current order invoice.
>
> So now I am not sure how to input this in SL because it really isn't
> directly related to my new company.
>
> Should I do a GL transaction to adjust?
>
> For example the supplier invoice reads $200, but after the credit it's
> $150. So I do not just want put the cost of the items to be actually
> less when I create a vendor invoice, since that would just throw my
> profit off by a bit.
>
> What is the correct way to adjust this accordingly? If its a GL
> transaction, would I do this backward than traditional?
> ie. debit my bank account and credit the account for this item?
>
> If someone can suggest something I would appreciate it.
>
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