Happy Monday, NetSuite professionals. For the Credit Memo, G/L Impact, does it go to the Returns Account? or it goes to the production revenue?

the screenshot is from the G/L impact on a credit memo?

yes

so what's the actual question?

the CFO is asking why is it going to production revenue and not "Returns" account

actually, it will not go to returns - why should it? The reason for credit does not have to be a return. The credit goes back to where it came from so to speak.

Yeah, it’s just a reversal

hmmm so when does it go to returns account?

I'm not sure what you want us to say. You can see what the GL impact is from your screenshot & have had it confirmed how it works. I'm not even sure having a different GL account for returns makes sense. How would the $ placed into the returns account then get moved out, for example? What would the process be?

sorry, I am not accounting person, so not sure what to say when they ask I want to create different item account Mapping to make sure customer returns goes to returns account.

yes, companies do use return accounts, indeed. But not within NST environment; within NS there are customer return authorizations and vendor return authorizations, ie. these are processes vs GL accounts. Very similar conceptually to intercompany processes if you think about it. This is a different accounting mentality, and for some CFOs it needs to be explained multiple times

Update on this There is a Free SuiteApp that does this, 318158 : sales Return Accounting