Some damaged goods (also called fallouts) are
returned to the vendor for replacement or credit. In
other cases, it might not be worth the time or effort to return the goods. For
example, if you purchased 2-cent screws, you might not want to return a handful
of screws to the vendor for credit. The freight to return them would cost more
than the credit.
When you discard damaged goods, you can track them in the QuickBooks Damaged
Goods log. To keep the inventory quantities for the item correct, adjust
inventory when you discard an item.
To do this task
Go to the Mfg & Whsle menu, click Inventory Activities, and then click Damaged Goods Log.
Enter information about the damaged items into the Damaged Goods log. You
can fill in the log once a day or as things are determined to be damaged
throughout the day.
Create an item
adjustment for the faulty items that were discarded.
Important: Make sure that you record all item adjustments before every inventory
Use the Inventory Adjustment account to make adjustments. This is typically
a Cost of Goods Sold account or an Expense account.