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Cost Accounting Transactions from Returned Goods

If you are using a FIFO stock system and/or cost accounting (maintaining stock values in the Nominal Ledger), two complications can arise from the issuing of a Credit Note:

1. some Credit Notes will involve the return of goods to stock, whereas others may not; and
   

2. FIFO becomes impossible to calculate without intervention, as there is no way for the system to know the actual cost of the goods being returned.

For these reasons, to maintain an accurate stock valuation it is recommended that you follow a particular course of action when issuing Credit Notes and returning goods to stock. Please refer to the Credit Notes and Stock page for full details.

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