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1. Run a Crop Inputs Inventory Report for that product through the current date and note the unit price of the ending inventory. In the example below Deadline Bullets is valued at a $1.5788 unit price which is a weighted average of $1.74 beginning inventory and purchases at $1.43.
2. Record a Deposit, Accounts Receivable or Accounts Payable. Enter the vendor's applied credit value as Total Amount. On the first line select your "linked" chemical purchase account and record a negative quantity and negative dollar value using the ending inventory unit price. Enter the dollar variance between the applied credit amount and the linked account amount in an unlinked chemical expense account.
Below is the Crop Inputs Inventory Report after recording the return. Note that the ending inventory unit is still $1.5788 and there are no red or yellow-colored warning message.
Q. Could I have just backed out the inventory at the value of the last purchase?
A. Yes, but only if there are no applications recorded between the purchase and return dates and the quantity of the return does not exceed the quantity of the purchase.
Another alternative is to "back-date" the return to any time between the original purchase and the application. However, you still need to be careful to use the correct ending unit price for any "linked" account.
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