There will be times when merchandise needs to be shipped to customers or back to the manufacturer. All merchandise and shipping costs need to be accounted for. A shipping log will be established to keep track of all shipments out of the facility. The shipping log should track the product shipped, the date shipped, the shipping costs, a check number if applicable and the return date if applicable.
If the product is being shipped to a customer, the merchandise must be rung up through the register as well as the shipping costs. A receipt should be sent to the customer with the product. All customer product shipping information must be recorded in the shipping log.
If any product currently in inventory is being shipped back to a manufacturer, the product needs to be accounted for in the shipping log and with a Return Order Form (RO). If the product is out of the shop during an inventory count, the shipping log and PO will allow for tracking of the product. A vendor return authorization number needs to be established and recorded before any product is shipped back to a manufacturer. If the product is being returned and not coming back to the facility, the product needs to be removed from the inventory using the proper POS procedures and the paperwork needs to be turned into the accounting department. The shipping costs for facility shipping should be charged to the proper G/L account.