Topic: Choosing the Correct Return Account

Dealing with A/R and A/P returns is a common task for any bookkeeper. Most acccounting exercises are set up to use a Renenue or Purchases account, by default. The thing you should remember when dealing with a Return is: Always look at the available accounts to see if there is a special one for Retuns.

In this Sales Invoice we are dealing with a return . The field you want to check is .  By default this will be a revenue account like sales. Double click on  to bring up the Select Account Box.

When you open this box the default account, here Sales will be selected.

If you see a special account set up to handle return and allowances then click on that account and then click on the Select button.

The Select Account window will disappear and the entry now looks like the following.

Good Luck Remembering this Rule - You will see it again!