We originally did price adjustments using a location we created called “Price Adj”. We enter an item # select location “Price Adj” enter the qty and the price adj amt and zero the cost. This seems to work like a charm. We have recently been told that we should be using Charge Items to do this. The problem is it literally takes minutes everytime I want to do a Charge Item because it has to search thru the Sales Shipment lines. The Location method does the same job in seconds. The only problem is it’s creating inventory when we use the “Price Adj” location. Even tho it’s a location nobody ever sees and eventually I guess we could do an item joural to wipe out all the bogus inventory. Most of all I have set up the “Price Adj” location to hit the same G/L accounts that the Charge Item does. Also when we print out our credit memo’s it lists the item and description and amount of the credit i don’t think Charge Item credits do this. Does anyone know a downside to using the Atl. Location method for Price Adjustments & Shortages?
Does everyone use Charge Items to make credits for price adjustments, shortages or merchandise damaged in transit? Has anyone else used an Alt. Location to accomplish this task?
I think your method of using a location is unusual. The main advantage of using item charges is that the cost is applied directly to a specific transaction and inventory information (such as margin analysis) is more accurately reflected. But it is a little long winded I admit. I find item charges best for charging/crediting things like re-stocking charge and transport. With price adjustments that relate to the product itself, I think it is usually easier to credit the orginal transaction in full and issue a new invoice line with the correct price. Again this help to keep all your inventory correctly costed and easier to audit the movements. There are many various ways to do these transactions and no particular right or wrong…