InventoryLab automatically captures the fees that Amazon charges to dispose of items for you or to send them back to you.
Accounting for Removal and Disposal Orders Prior to 2019
InventoryLab does not capture the loss of the buy cost for these items prior to 2019. If you have something disposed of or sent back to you, a best practice is to create a category in Other Expenses where you capture any loss you took on these items. Usually, your loss is the buy cost amount unless you were able to sell the item on another platform (Facebook group, eBay, Craigslist).
If the removal is due to a Customer Return, then you'll be able to set the return as Unsellable or Sellable to account for buy cost.
You'll also need to manually adjust any replenishments that include the quantity of the removed items by the quantity removed, if the removal is not due to a customer return. To do this:
1. Navigate to Inventory > FBA. Click on the MSKU of the item.
2. Click on the quantity in a sort sequence and subtract the quantity removed from the current total.
3. Click Save.
If you plan to send the item back into the fulfillment center, all you'll need to do is remove the sort sequence quantity. When the item is sent back in to the fulfillment center, the buy cost will be accounted for when it sells.
Accounting for Removal and Disposal Orders 2019 and Beyond
For Removals & Disposals starting in 2019, we account for your buy costs once the removal or disposal is complete.
If the item is removed due to a customer return, when you mark it as Sellable, we give you a buy cost credit so that the buy cost can be accounted for with the next sale. When marked as Unsellable, the buy cost stays with the original sale.
For a regular removal, if you mark it as Sellable, then you can account for the buy cost when you ultimately sell the item. When marked as Unsellable, we account for the buy cost of the item as a loss.
We also account for the inventory item by automatically removing the quantity from your replenishments pages once it is removed.