We have a problem when a product returns because some customer didn’t got it ( Fake order etc ).
Our problem is that into the “taxes” we also have the shipping cost and when we have a return the taxes will “return” because we will not get taxed for something that we didn’t sell but the shipping cost is something that we have paid and will not return. If while doing the return we exclude the shipping cost then this stays as unpaid to the customers profile, which is correct and false in the same time.
Our remedy for “failed” orders like this either to cancel the invoice and make a journal entry with the cost of shipping or to make a return ( so we can have tracking ) and then do a journal entry with the cost of shipping.
There must be a way to do a return and don’t return the shipping cost without leaving an unpaid amount to this customer and just pass the charge into the “postal expenses account” ( this is the name of our account ).
I don’t understand why you would not cancel the whole sales invoice. The sales invoice is the money you will receive from your customer for products sold, shipping and handling and taxes. If customer isn’t paying because of an error, the whole invoice should be credited including the shipping cost.
Yes, you incurred shipping cost even if the customer isn’t paying. This cost is handled by a purchase invoice.
There is something missing in your explanation. Do you have an automated script which creates the shipping expense and payable from your sales invoice?
We don’t track - have purchases invoice for the shipping. So there is no purchase invoice for the shipping company that would take care this one.
Also we don’t want to cancel the invoice but instead make a return so we can track based on name of customer if he did a “fake” order at the past. We wish there was any other way, like a notification based on customer tagging.