Friday, February 19, 2016

Update your Returns at Sellable in IL - This is a Must for Taxes

This is something that came to my attention recently from @mileswhip.

I am a big fan of Inventory Lab as it saves me a ton of time tracking sales.

Inventory Lab does something a little curious with returns.  They automatically mark all returns as "Defective" when they come back to Amazon. They will never mark it as "Sellable".

If something is marked as Defective, the assumption is that it is getting sent back to you since it isn't sellable.  When you send it back in to sell as "like new" you would normally put in a buy cost of $0.00 or $0.01 since the cost was already captured the first time.  If however, it is marked as defective and is sold again, Inventory Lab will capture the buy cost a second time.  It will then look as if you made less money than you actually did.  Your knowledge of your own profit will be off and you will be underpaying your taxes.  If you are using Inventory Lab for taxes, you absolutely must pay attention to this.

All of your refunds processed through Amazon will show in this screen. The default disposition for the refunds is “Defective”. It is very important that users periodically review this page and indicate if an item was actually sellable. An item marked defective that is actually sellable and returned to inventory will result in your accounting being incorrect as the buy cost of the item would be captured twice.

Luckily, there is an easy fix.  It's annoying that you have to do this manually but it is rather simple and not terribly time consuming if you do it every once in a while.

Here is what to do:

Go to your reports on Amazon (Reports>Fulfillment and then click Returns on the side).

Change the "Event Date" to whatever time frame you want and then run a report.  You will sell all your returns that made it back to Amazon there.

 You are looking for the ones that say "Sellable"  those are the ones that made it back into your inventory.  

In Inventory Lab, click on Inventory>Refunds. You will see see that all of your orders will say "Defective"

Copy each Order ID from Amazon that was marked as sellable into paste into the search bar in Inventory Lab.  You can then change that item from Defective to Sellable.  It will then add a "Buy Cost Credit" associated with that item so that you don't have your item cost counted twice.

As I said, annoying but easy.