...

1. Creating a Return Authorisation
2. Sending Alternative product
3. Inspecting returns
4. Returning to stock or scrapping
5. Claiming from the supplier

Return Authorisations (RA)

Return Authorisations are to manage stock returned for various reasons that then require decisions about credit, replacement, stock writeoffs and Supplier claims

...

Returns are always directly related to a single Sales order and hence can use the cost of the product on that order for the credit note.

Starting a Return Authorisation from a Sales Order

A Return Authorisation can be started from a Sales Order - The RA will then have the price the product was sold at and hence the credit due.

Starting a Return Authorisation from the RA screen

To start directly from the RA screen

...

Then the list of Sales Orders will be shortened to those that included that Article - the order / invoice involved is required to get the price paid by the customer.

Once a Sales Order has been identified that has items being returned

Enter what is being returned, the reason, the action to take and any claim % likely on the supplier.

...

Reason for Returning (Scenario)

Select the reason for returning the item. One of:

• Order ErrorErrors
  • Rep made an error
  • Customer made an error
• Picking / Shipping Error
  • wrong item was sent to the customer
  • more was sent than ordered
• Goods Damaged in transit
• Goods Damaged in use
• Defective Goods
• Goods not wanted
• Short Dated Goods
  • for perishable products
• Wastage
  • Common if a customer can return unsold items eg expiring product
• Product Recall
• Sale or Return 
  • product that it is agreed the customer can return if not able to resell
• Other - not in above list

Action on Returning item

This is the action the system will take.

...

• Replace Only
  • if the customer has a problem with what you have sent and simply wants it replaced - ie colour
• Credit /refund Only
  • no need to send anything or return anything
  • Credit will be created
    • Default Credit default account can be set on GL Control Accounts - otherwise will be default revenue account
  • Refund screen will open = only save it if you plan to send a refund - otherwise close the screen without saving
• Return Only
  • Will inspect the return item
• Refund then Return
  • Create Credit Note n Refund Immediately - await product return
• Replace then Return
  • Send a replacement and wait for a return
• Return and Send AlternateReturn
  • Send Alternate then Return
  • • Expect a return but do not wait for it to send an alternate
  • Send Alternate then Return
    • Send alternative immediately expect return
  • Return-Inspect-Refund
    • Refund approval is required after return inspection
  • Return-Inspect-Replace
    Invoice (
    • Replacement will require approval after the inspection
    • Invoice 
      • if an additional item was sent but not invoiced
      )

    RA's for items that were not on an original order

    Note
    If a Return Authorisation is to be created for only items that were not in the original order, e.g. an item that was not ordered but was delivered, then click 'Create an empty RA to add items not in order'

    ...

    • Added lines must have a Reason of 'Delivery Error'.
    • Added lines must have an Action of 'Return and Inspect' or Invoice.

    

    RA Actions - Valid Reason/Action combinations

    The following table shows the valid Reason/Action combinations: 

    Action > Reason V	Potential Reason	Replace Only	Credit Only	Replace-Return-Inspect	Return-send correct item	Return-Inspect-Credit	Return-Inspect-Replace	Return and Inspect	Invoice
    Order Error Rep/Agent Customer Shipping Not Wanted	Sales order was entered incorrectly

       

    X

    X

       

    Delivery Error	sent to customer but not on sales order	X	X

     

    X

      

    		X	X
    Goods Damaged(Not Delivered)	Returned before customer receipt	X	X

          

    Goods Damaged(Delivered) In transit In use	Returned after customer receipt	X	X	X

     

    X

    X

      

    Defective Goods	Some defect not related to delivery	X	X	X

     

    X

    X

      

    Short-dated goods	Expiry date to short at time of delivery	X	X	X

     

    X

    X

      

    Wastage	Stock considered waste	X	X	X

     

    X

    X

      

    Product Recall	Supplier recall	X	X	X

     

    X

    X

      

    Activities that follow Actions

    The following table shows what activities take place for each action.

    Action	Potential Reason	Replacement order	Inspect before next step	Credit	Inspect after next step	Invoice	Stock Adjustment
    Replace Only

     

    X

     

    X

    scrap

      

    Credit/Refund Only

       

    X

    scrap

     

    		x
    Replace-Return-Inspect

     

    X

     

    X

    X

     

    		x
    Return-send correct item (Alternate)	Order Error	Item wanted

     

    X

    X

     

    		x
    Return-send correct item (Alternate)	Delivery error	Item ordered

     

    X

    X

     

    		x
    Return-Inspect-Credit

      

    (or refund)

    X

    X

      

    		x
    Return-Inspect-Replace

     

    X

    X

    X

      

    			x
    Return and Inspect

        X  Invoice     X 

    (or Return Only)					X
    Invoice						X

    RA's Cannot include Action of "Invoice" with any other Action

    Note
    A Return Authorisation cannot include items with an Action of Invoice as well as items to be replaced. If this is required then create 2 separate Return Authorisations

    How will the goods return to the Warehouse

    Options include:

    1. Done = the pickup date will be set to today.
    2. Delivery Driver picks them up as he drops other goods (will be on their manifest).  The date will set to their next expected delivery day.
    3. Sales Rep picks them up on next visit to the store (will be on their daily sales run). The date will set to their next rep visit day.
    4. Couriers or other carriers

    

    Replacement Items where different to those being returned

    If the wrong Article was delivered then the Article being returned was never on the outbound sales order

    When the wrong Article was ordered then it will be replaced with an alternative Article.

    Update the order lines to be shipped

    

    Submit the RA for Authorisation

    Note
    Only the Action "Invoice" does not need Approval

     

    
    

    

    RA's that are Awaiting Approval

    

    Who Authorises RA's

    Users must have the secure feature Secure FeaturesFeatures#CanAuthoriseReturnAuthorisations

    The Process After Approval

    The next step will depend on the lines of the RA

    1. If any line is requires inspection prior to credit the entire RA will await inspection before any credit is created
    2. If any line is Return prior to replacement order the entire RA will await return
    3. If no items require inspection or return the credit note will be created.

    Inspecting Returns

    The user will require the secure feature Secure FeaturesFeatures#CanInspectReturnAuthorisations

    The Warehouse will default to the same warehouse as the original order

    Attach photos if required to each line - these will later be available to supplier claims.

    Return To Stock

    • If the item is perishable then the stock will be returned to the 'Default Chilled Return Bay' of the Warehouse, if any, otherwise to the 'Default Chilled Return Bay' of the host company.
    • If the item is not perishable then the stock will be returned to the 'Default Ambient Return Bay' of the Warehouse, if any, otherwise to the 'Default Ambient Return Bay' of the host company.

    ...

    1. When Return To of Stock is chosen on the RA Inspection form a Stock Location text filter box and drop down list are displayed.
    2. The drop down list shows:
       • The default return bay, ambient or chilled as required.
       • The bays that this article has been in, with the most recent first.
       • Other bays that match the Storage Requirement of the article.
       • Other bays.
       • If text is entered as a filter then bays that match the text filter will be listed first.
    3. The Stock Location initially defaults to the second bay on the list, i.e. the one after the default return bay

    Delivery Error = no COGS Required

    If Reason is 'Delivery Error'  and Action is 'Return and Inspect' then 'Return To' must be Stock. No stock is returned to inventory and no COGS journal is written because this item was over-delivered and was never taken out of stock.

     

    
    

    COGS Journal's are written as stock is returned

    A COGS journal is written for each item inspected as well as those with Action 'Credit Only' or 'Replace Only'

    The GL account for the credit line of the COGS journal will be:

    • If the Reason is 'Defective Goods' or 'Goods Damaged(Not Delivered)' and there is a 'Cost of Sales - Faulty Stock' account on the 'Maintain GL Control' form (Administration menu, Control, Maintain GL Control) Sales tab then this account.
    • If the original sales order used a Sales Order Profile to determine the COGS account to be used for the order then that account.
    • Otherwise the 'Cost of Sales' account on the 'Maintain GL Control' form (Administration menu, Control, Maintain GL Control) Sales tab.

    The GL account for the debit line of the COGS journal will be:

    • If the item is returned to Stock then the 'Default Stock Asset' account on the 'Maintain GL Control' form (Administration menu, Control, Maintain GL Control) Stock/Manufacturing tab.
    • If the item is returned to Samples and there is a Samples account on the 'Maintain GL Control' form (Administration menu, Control, Maintain GL Control) Stock/Manufacturing tab then this account.
    • If the item is returned to 'Supplier Claim' or if the Reason is 'Supplier Support' and the Action is 'Credit Only' or 'Replace Only'
      • If the supplier has a 'Supplier claim GL acct' on the Creditor form (Creditors menu, Creditor Maintenance) Creditor tab then this account.
        • The item must have a Claim% greater than 0.
      • Otherwise the 'Stock Write Off' account on the 'Maintain GL Control' form (Administration menu, Control, Maintain GL Control) Stock/Manufacturing tab.
    • If the Reason is Wastage and there is a Waste account on the 'Maintain GL Control' form (Administration menu, Control, Maintain GL Control) Stock/Manufacturing tab then this account.
    • Otherwise the 'Stock Write Off' account on the 'Maintain GL Control' form (Administration menu, Control, Maintain GL Control) Stock/Manufacturing tab.

    After Inspection - Decision Required

    When all of the lines of a Return have been inspected then

    ...

    A user with the secure feature Secure FeaturesFeatures#CanAuthoriseReturnAuthorisations will need to Authorise the creation of replacement orders and credit notes by choosing "Confirm" from the status menu.

    Credit Note Created

    If any of the items in the Return require a credit then a Credit Note will be created.

    ...

    Note that the Credit Note is linked to the replacement order, if any, otherwise it is linked to the original order.

    Replacement Order

    If any of the items in the Return require replacement then a replacement order will be created.

    ...

    Note
    If ANY of the items in the Return require inspection before credit (i.e. Actions 'Return-Inspect-Credit' or 'Return-Inspect-Replace') then the replacement order will be created after the Return has been Confirmed after Inspection, otherwise the replacement order will be created after the Return has been Approved after submission.

    Supplier Claims

    Where you plan to claim on a supplier use Supplier Claims based on supplier funded promotions, Customer Returns, Stock Write offs

    

    Sale Or Return

    Sale or Return is for stock provided to customers where you will take back and credit any stock they do not sell if returned before expiry

    ...

    Normal return in Sales or Return is in Units (not Packs) - so the correct number of units are required.

    Sale or Return is limited by Stock Article

    

    Sales Reps enter a Return and create a Credit immediately

    

    Note
    Email Addresses The list at the bottom right of the form is the addresses to which the credit note will be emailed when it is created. This defaults to the Customer's email address. Additional names and addresses can be entered and saved. Addresses can be selected by right clicking and choosing Select, or double clicking, on Name. The selected address can be changed and Saved or Deleted.

    Supplier Claims of Sale or Return items

    When a supplier will cover the cost of sale or return items - eg new product introductions, short expiry products etc, the Supplier will require a Supplier GL Claim Account to track the claims until they are approved.  This is normally a Current Asset Account as the claim is considered an asset until it is paid or cancelled.

    The Credit Note created will be listed in the supplier claims if the supplier has a claim account.

    

    Update the Supplier Claim Lines

    

    Actions for the Claim

    

    Preview the Credit Note Details Report - email when ready

    This will be attached to the email to the supplier and the credit note

    

    Once Approved - Create the Credit Note for the Returns Claim

    

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