In my earl posts about posting groups, I have showed purchase and sales processes. But both of these processes have its opposite processes.
If our customer wants to return items to us, we can use the Sales Return Order for this. When we finish posting, we will get Return Receipt and Sales Credit Memo as result.
On other side, if we want to return items to our vendor, we can use the Purchase Return Order for this. As result of posting, we will get Return Shipment and Purchase Credit Memo.
First, I will describe sales return process. When we post Return Receipt, we will get only these G/L Entries:
But, when we finish posting and post Sales Credit Memo, we will get more G/L Entries:
The similar situation is in purchase return process. When we post Return Shipment, we will get again only these G/L Entries:
But, when we post Purchase Credit Memo for this item, we will get more G/L Entries:
And, on the end when we run Adjust Cost – Item Entries batch job, we will get the following G/L Entries (variance between expected and actual cost):