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AHJS's avatar
AHJS
Experienced Cover User
2 months ago

Supplier replacing faulty stock at no charge

Hi community

 

After some help please on how to handle an issue.

 

We purchase stock from our main supplier in Italy and have recently received a bad batch and all units are unsalable, the total of which was 1608 units.  As well we are now out of stock.  We have embargoed the stock in the warehouse so it doesn't leave/be sold and are yet to write it off in MYOB.

 

The supplier are sending us 1440 units via airfreight at no cost, on an invoice as eur 0.00.  The shortfall of units is because of height restrictions for airfreight pallets.

 

How do I account for this correctly in MYOB?

 

We run AccountRight Plus on desktop, 2024.4.0 build 2024.4.1.12

 

Many thanks

AJHS

Desktop

2 Replies

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  • Earl_HD's avatar
    Earl_HD
    MYOB Moderator
    2 months ago

    Hi AHJS,

    Thanks for your post. In this type of scenario, we recommend reaching out to an accountant or financial advisor for an accurate solution.
     

    If you have any further questions or need additional assistance, please don't hesitate to start a new post. We're here to help!

    Regards,
    Earl

  • Mike_James's avatar
    Mike_James
    Ultimate Partner
    2 months ago

    Hi AHJS , assuming you will pay the suppliers original bill, then you will end up with 1440 units for the price of 1608 units, ignoring any minor charges in NZ to bring the air shipment to your warehouse. So you could make an inventory adjustment to reduce the onhand quantity by 168 units but leave the cost unchanged, ie set the cost on the IJ to zero. The unit cost of the 1440 will increase. 

     

    There might be other ways to account for this depending on what you want to achieve. 

     

    I've also ignored the disposal or return costs for the faulty units, if applicable.