The General Ledger Sales Return Posting preference controls how sales returns are recorded in Crystal's General Ledger. You can keep posting returns to your Sales Returns account, or have each return reverse the original sale using the same accounts.
The Two Options
Option | How returns post | Best for |
Post to the Sales Returns account (default) | The revenue reversal is debited to the Sales Returns contra-revenue account. | Stores that want to see gross sales and return activity separately, such as to track return rates. |
Reverse original sale and use the same accounts as the original sale | The return directly offsets the original sale, using the same accounts the sale posted to. | Stores that want returns to reduce revenue directly in the same income accounts. |
đ Note: Changing this preference applies to new returns only. Past transactions are not changed.
Change the Preference
Go to Admin â Preferences.
Scroll to the General Ledger Sales Return Posting preference.
Select Post to the Sales Returns account or Reverse original sale and use the same accounts as the original sale from the dropdown.
Example
Example: a $5,000 ring sold with $300 tax is returned for a cash refund.
Post to the Sales Returns account (default):
Account | Debit | Credit |
Sales Returns | $5,000 | |
Sales Tax Payable | $300 | |
Cash | $5,300 |
Reverse original sale and use the same accounts as the original sale:
Account | Debit | Credit |
Sales Revenue (or the income account used on the original sale) | $5,000 | |
Sales Tax Payable | $300 | |
Cash | $5,300 |
The COGS reversal (Inventory Asset debited, Cost of Goods Sold credited) is the same under both options.