How to Reconcile ‘Inventory Returned Not Credited’ Account in NetSuite

The 'Inventory Returned Not Credited' account functions as a suspense account, recording item returns via Vendor Return Authorizations. It is debited upon item fulfillment (shipment to vendor) and credited when the related Bill Credit is recorded. If both transactions occur within the same period, the account should net to zero. NetSuite does not offer a standard report for this reconciliation.To manage this, a custom report can be run at the end of each period to monitor the account. Follow these steps to create an alternate solution report:

1. Navigate to Reports > Financial > General Ledger.

2. Click Customize.

3. On the Edit Columns tab, set/remove the following:o Remove Account and Type columns.o Add Created From column from the Add Fields portlet and Transactions folder.

4. On the Report Preview portlet, set the following:o Remove Account and Type field from the report.o Drag Created From column to the leftmost part of the report.o Mark Group box.o Add Transactions : Amount Column and mark Add Running Balance box.

5. Click the Filters tab and add filter Account By Type : Name and set it to equal to Inventory Returned Not Credited.

6. Click the More Options tab, set the Expand Level field to Level 3.

7. Click Preview or Save the report.

8. Set the desired date range.This report displays all transactions posted to the account, subtotaled or grouped by the 'Created From' field, which typically represents the Vendor Return Authorization (VRA) number. Transactions that do not net to zero should be reviewed, as they indicate VRAs pending item return or bill credit.Additional information regarding foreign currency variance:If a Vendor Credit is applied, Foreign Currency Variance is created.If a Vendor Credit is not applied, there is no Foreign Currency Variance.Example Scenario:

9. Create a Vendor Bill - Date November 6, 2012Navigate to Transactions > Payables > Enter BillsExchange Rate is 2; Item Rate is $100GL Impact:

Inventory Asset ----------- 200Accounts Payable ------------------ 200

1. Create a Vendor Return Authorization - Date November 7, 2012Go to Transactions > Purchases/Vendor > Enter Vendor Return AuthorizationExchange Rate is 1.5; Item Rate is $100Return the item (Item Fulfillment GL Impact):

2. From Item Fulfillment, if we click on Credit button - we will be directed to Bill Credit pageSet the Exchange Rate to 1.1; Item Rate is still at $100>Save the bill creditGL Impact:

Accounts Payable ---------------- 110Inventory Returned not Credited ------------------ 110

Now, edit the Bill Credit then on the items tab>click on Apply subtab- apply this bill credit to the bill>click SaveGL Impact:

Accounts Payable ---------------- 110Inventory Returned not Credited ------------------ 110Accounts Payable ---------------- 90Realized Gain/Loss --------------------------------- 90