E-commerce
Customer Return — Damaged Product (Not Restocked)
Processing a return where the product is damaged and cannot be resold.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Sales Returns & Allowances | Contra-Revenue (+) | 99.00 | - |
| Cash / Bank (Refund) | Asset (-) | - | 99.00 |
| Inventory Loss — Returns | Expense (+) | 45.00 | - |
| Cost of Goods Sold (Reversal) | Expense (-) | - | 45.00 |
💡 Accountant's Note
Revenue is reversed but the product cannot go back into inventory. COGS is also reversed, but the cost of the damaged item is recognized as an Inventory Loss expense — the net effect is still a loss on the order.
Professional Excel Template
Get the automated version of this entry. Includes built-in IFRS checks, VAT calculators, and SAP-ready upload formats.
QA
Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.