Table of Contents

Overview

Explains the two processes available

Return of product provided to customers that they can return if they do not sell
General Returns

Manages the returns to claim process

Creating a Return Authorisation
Sending Alternative product
Inspecting returns
Returning to stock or scrapping
Claiming from the supplier

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

Commonly used to reduce the risk to the retailer of trying new products

The customer has to have purchased the Sale or Return Items (there must be a sales order in the system)

The Customer has to return items not sold to receive the credit

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

SaaSplications Online Help > Return Authorisations, Supplier Claims, Sale or Return items > Stock Article Screen.jpg

Sales Reps enter a Return and create a Credit immediately

SaaSplications Online Help > Return Authorisations, Supplier Claims, Sale or Return items > creating a credit for a sale or return item.jpg

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.

SaaSplications Online Help > Return Authorisations, Supplier Claims, Sale or Return items > supplier GL account.jpg

Update the Supplier Claim Lines

SaaSplications Online Help > Return Authorisations, Supplier Claims, Sale or Return items > supplier claim entry.jpg

Actions for the Claim

SaaSplications Online Help > Return Authorisations, Supplier Claims, Sale or Return items > return claims actions.jpg

Preview the Credit Note Details Report - email when ready

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

SaaSplications Online Help > Return Authorisations, Supplier Claims, Sale or Return items > claim report example.jpg

Once Approved - Create the Credit Note for the Returns Claim

SaaSplications Online Help > Return Authorisations, Supplier Claims, Sale or Return items > creditor credit note.jpg

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

RA's can be either Packs (As sold) or units (as per units per pack).

Sale or Return items cannot be returned using an RA.

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.

SaaSplications Online Help > Return Authorisations, Supplier Claims, Sale or Return items > sales order start return authorisation.jpg

Starting a Return Authorisation from the RA screen

Alternatively you can start directly from the RA screen

choose from products sold in the last 3 months (List of Articles)
List of Orders to find the orders that included that Article.

SaaSplications Online Help > Return Authorisations, Supplier Claims, Sale or Return items > start a RA.jpg

Once you have selected the Item involved

Then the list of Sales Orders will be shortened to those that included that Article

SaaSplications Online Help > Return Authorisations, Supplier Claims, Sale or Return items > select the batch to return.jpg

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.

Units are only available if the Article has a Pack Size >1. Units are a fraction of a Pack and the smallest qty that can be returned.

For Example if a product is sold as: Qty/Unit = Pack, Pack size = 4, UOM = 6 bottles... Then 24 Bottles are in a pack and 6 bottles are in a Unit and 6 bottles is the smallest qty that can be returned and they will be returned as 1 Unit

SaaSplications Online Help > Return Authorisations, Supplier Claims, Sale or Return items > create the RA.jpg

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

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'

If there are items to be returned that were not in the original order, e.g. an item that was not ordered but was delivered, then enter the details in the top part of the RA Items tab and click 'Save Item'.

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

SaaSplications Online Help > Return Authorisations, Supplier Claims, Sale or Return items > item that was not on original order.jpg

RA Reasons

None
Order Error = the sales order was entered incorrectly
Delivery Error = the product was sent in error to this customer and was not on the sales order
Goods Damaged (Not Delivered) = returned before being delivered to the customer
Goods Damaged (Delivered)
Defective Goods = some defect not related to delivery damage
Short Dated Goods
Wastage = the stock is considered wastage and the customer wants the supplier to remove it
Product Recall

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	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)	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
Replace Only		X		X	scrap
Credit Only				X	scrap
Replace-Return-Inspect		X		X	X
Return-send correct item	Order Error	Item wanted		X	X
Return-send correct item	Delivery error	Item ordered		X	X
Return-Inspect-Credit			X	X
Return-Inspect-Replace		X	X	X
Return and Inspect					X
Invoice						X

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

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:

Done = the pickup date will be set to today.
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.
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.
Couriers or other carriers

SaaSplications Online Help > Return Authorisations, Supplier Claims, Sale or Return items > how will the goods return.jpg

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

SaaSplications Online Help > Return Authorisations, Supplier Claims, Sale or Return items > update the lines to be shipped.jpg

Submit the RA for Authorisation

Only the Action "Invoice" does not need Approval

SaaSplications Online Help > Return Authorisations, Supplier Claims, Sale or Return items > submit for Authorisation.jpg

RA's that are Awaiting Approval

SaaSplications Online Help > Return Authorisations, Supplier Claims, Sale or Return items > Finding Return Authorisation that are submitted for approval.jpg

Who Authorises RA's

Users must have the secure feature Secure Features

The Process After Approval

The next step will depend on the lines of the RA

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

Inspecting Returns

The user will require the secure feature Secure Features

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.

SaaSplications Online Help > Return Authorisations, Supplier Claims, Sale or Return items > return inspection.jpg

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

If none of the items require a credit or if the credit note has already been created then the Return will be Closed.
Otherwise the return Status will change to 'Decision Required'.

A user with the secure feature Secure Features 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.

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

The Credit Note will always credit the items in the original order.
The GL account on the debit line of the credit note will be the same as the GL account on the original order invoice for that item.

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.

If the Reason is 'Order Error' and the Action is 'Return-send correct item' then the replacement order will be for the item wanted by the customer, otherwise it will be for the originally ordered item.

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

SaaSplications Online Help > Return Authorisations, Supplier Claims, Sale or Return items > supplier claim from RA.jpg