Definition: Amount charged by a seller for accepting a returned merchandise and paying a refund.
IMPORTANT:
Many jurisdictions have rules (laws) governing restocking fees including when and how stores communicate to customers about the fees. Policy signs placed conspicuously on the selling floor and within the register areas is a common rule. In some Jurisdictions there may be a limit or it may be illegal for any amount to be charged. Verify your jurisdiction rules before applying a re-stocking fee.
|
When doing a return it may be appropriate to charge the patient a re-stocking fee. The recommended best-practice method when applying a re-stocking fee to a patients invoice is to do the return on the original invoice and apply the re-stocking fee (Inventory Miscellaneous Item) on a separate invoice.
The reason to create a separate invoice is that a return could occur in a different financial period. The revenue from the re-stocking fee should be accounted in the current accounting period.
