Table of Contents

Overview

Explains the two processes available

Return of product provided to customers that they can return if they do not sell (Sale or Return)
General Returns (Return Authorisations)

Manages the returns to claim process

Creating a Return Authorisation
Sending Alternative product
Inspecting returns
Returning to stock or scrapping
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

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.

Starting a Return Authorisation from the RA screen

To 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.

Once you have selected the Item involved

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.

The Return quantity must be less than the ordered quantity unless a delivery error has occured

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

Units cannot be replaced if the stock article usage does not include "Sell" - only packs can be replaced.

Reason for Returning (Scenario)

Select the reason for returning the item. One of:

Order Errors
- 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.

All lines will wait for any inspection

If any lines on the RA require inspection - all items will wait for the inspection. So if you want to send replacements immediately - put them onto a separate RA

When creating an RA, if action requires a replacement order and item has a minimum or multiple selling quantity then return quantity must comply with the minimum or multiple.

Select the action to be taken for this item. One of:

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 Alternate
- 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
- 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

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.

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 (or Return Only)					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

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

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 Features#CanAuthoriseReturnAuthorisations

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#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.

When Return To of Stock is chosen on the RA Inspection form a Stock Location text filter box and drop down list are displayed.
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.
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

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#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.

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 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

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

Sales Reps enter a Return and create a Credit immediately

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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