Whenever you sell a product, ConnectBooks deducts the item from inventory by creating an invoice in QuickBooks. When a product is returned, ConnectBooks adds it back to inventory by generating a credit memo in QuickBooks.
Handling Damaged and Unsellable Returns:
FBA Transactions
When a product is returned, Amazon inspects it to determine if it is sellable. During the inspection period, we assume the item is in good condition and add it back to inventory. (If you prefer to assume the item is damaged and not add it to inventory until Amazon confirms it is sellable, please contact support to customize this setting.)
If Amazon determines the item is unsellable, we remove it from inventory using unsellable refunds on our reports and create a zero-dollar invoice in QuickBooks to reflect this.
Example: If you sell a phone, we remove it from inventory. If there's a refund, Amazon takes about two weeks to check if it's resellable. During this time, we add the phone back to inventory. If Amazon later says it's unsellable, ConnectBooks removes it using unsellable refunds.
If Amazon reimburses you for the damaged refund, we will record it as an adjustment.
Non-Amazon marketplace and FBM transactions
Since only the seller sees the returned items, ConnectBooks automatically adds them back into inventory. The seller should inspect the returns upon receipt and manually remove any damaged items from QuickBooks inventory.
If the item is damaged and doesn't go back into inventory, the seller loses its value, which will show as a loss in QuickBooks and on the ConnectBooks P&L report.
Click here to learn how to customize additional return settings.