Hosted QuickBooks Tip of the Week: Issuing credits in QuickBooks for Damaged or Faulty Products
Sometimes it is not cost effective for clients to return damaged or faulty products because you can’t put them back into inventory. If you enter a credit for the original item, QuickBooks will put the item back into inventory. In order to resolve this you can do an inventory adjustment to remove the product after issuing the credit.
Simply create an item named Damaged Returns and link it to an account named Returns. You will want to make the Returns account an income account. Use that item in the credit instead of the original part number.
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