Scenario
When Restock checkbox is unmarked on Item Receipt from Return Authorization and user encounters an Unexpected Error:”Cost of Goods Sold Not in Balance”, it is possible that user sets the account for Write-off Account for Returns the same with the account that is set as COGS Account.
- When an Item Receipt comes from a Return Authorization and the Restock Checkbox is marked, the GL Impact shows:
- Debit to Asset Account
- Credit to COGS Account
- Since you restock the Item you also need to return its corresponding Asset Account to the accounting books.
- When an Item Receipt comes from a Return Authorization and the Restock Checkbox is unmarked, the GL Impact shows:
- Debit to an Expense Account that is set in the Write-off Account for Returns
- Credit to COGS Account
- Note: The error is possible if same Account is set in the Write-off Account for Returns and COGS Account because it would result to a debit and a credit to same Account.
Solution
- Navigate to Setup > Accounting > Accounting Preferences > Order Management tab
- On the Returns section
- Change the Write-off Account for Returns to an Expense Account different to the account set as COGS Account
- Click Save