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How can we return products to supplier? There is Return product function in Incoming Shipments, But the journal entry does not decrease the Goods in Stock and doesn't decrease the liability to supplier. It just moves products from one location to another. Is there any possibility to return the products with normal resulting journal entries? Credit - Products, Debit: Liability?

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If you are not seeing journal entries for the return then either

  1. the cost price of your product is $0 or
  2. you have not configured "Real Time (automated)" inventory valuation for that product.
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