Supplier Returns

The Supplier Returns module facilitates the returning or exchange of stock to local and overseas suppliers and claiming and tracking of credit claims on physical inventory items from suppliers. Four forms are used to manage this module:

• Supplier Return Code– determines the type of credit being actioned and controls the updating of inventory, the ledger and creditors (Mandatory)

• Supplier Return Request – creates the request to be logged with the supplier (Optional)

• Supplier Return Shipping – where goods are being returned or exchanged, this form transfers the stock to an In Transit warehouse until the credit has been processed (Optional)

• Supplier Return Credit – updates the stock on hand, ledger and creditors (Mandatory). Work flows can be either option 1 or 2 or 3. The FX Rate for foreign creditors is the current rate applicable from the Foreign Exchange table and can be changed in the credit form

Supplier Return Process

The process flows from Request to Shipping to Credit.  You may start the process at any point, but must continue through each stage once started.  IE, if you start with a Request, you can't skip Shipping and go to Credit next.  You have to create a Shipping too, then Credit.  You can skip the Request and start at Shipping, but then you need to also process the Credit.  You can skip Request and Shipping and go straight to Credit.  The Credit will both move the stock out of inventory and create the credit against the supplier.

An In Transit warehouse needs to be created in each physical warehouse where Supplier Return transactions are to be created if you'll be using the Shipping function. It is not required if Credits only are to be used. 

Supplier Return Request

A Supplier Return Request is the optional first step in creating a credit on a supplier for the return, replacement or pricing credit on goods. Items can be selected from purchase orders with the supplier or manually selected or added to the grid. No journals are posted at this stage and there is no impact on the stock UNLESS the Returns Warehouse is NOT the current warehouse. In that instance, a Warehouse Transfer is created to move the stock and a journal created when Returns Codes are RG or EX.

Supplier Return Shipping

A Return Shipment step is optional and can be linked to an existing Return Request. The form is created in the warehouse where the stock exists.

If the original stock no longer exists, activating will display a message with the part number in conflict. Re-select the quantity from the serial dialog box by over-typing Qty to Ship. When the Return Shipment transaction is activated a Warehouse Transfers Outwards is created to move the stock to the In Transit Warehouse and a journal is posted to reflect that movement where return code is Return or Exchange or Short Delivery.

The Return Request is also updated with the shipping document details and status.

You can add items to the Details tab of the supplier return shipping by linking a supplier return request, manually adding items, or use the Add From PO in the header of the form to select items from a PO.  Only POs for the supplier selected on the Shipping will be offered.

When you enter Quantity To Ship, the serial selection form will open so you can select the exact stock lines you are shipping. Even if the item is not a serialised item you will be required to do this.

The Shipping needs to be activated to move the stock to the In Transit warehouse.  The point of doing this is so the stock cannot be picked on a sales order.  Once the Shipping is activated it creates a journal and a Warehouse Transfer Out behind the scenes.

Supplier Return Credit

Credits for return codes Returns, Short Delivery and Pricing Difference will create a credit in the supplier record where a quantity and a value exist. Value being claimed can either be increased or decreased for a part item.

One shipment can be used to create multiple credits or multiple Shippings can be used to create one credit. The tick box Complete is used to indicate that the action on a line is finished. Creating a new Return Credit from a shipment will only display those lines from the shipment that are incomplete.

The Return Shipping document is updated with the Return Credit details and status.

Supplier Return Codes

Return Codes are created to attach to the physical inventory items that credits are being claimed for or tracked or goods exchanged. Return Types dictate the return process as the steps required to return an incorrectly priced product is different to returning a damaged one. The Return Types are hard coded and are linked to each return code. Return codes types must be set-up before you can start using the Supplier Returns module. There are 6 codes that are set-up in a new database - these can be edited, deleted or added to. The Return Types control the updating of inventory, creditors and the ledger as follows:

• Return– reduces stock on hand, creates a credit in the creditors account, inventory and creditors ledger accounts are updated.  Any pricing difference between the cost of the stock and credit being claimed is posted to the cost price adjustment account

• Exchange – reduces and increases stock on hand when the items are shipped and exchanged. Journal entry impacts the inventory ledger only

• Short Delivery – reduces stock on hand when items are shipped. Journal impacts inventory and creditors ledger

• Pricing Difference – unit cost on the stock on hand records are updated. Journal impacts the inventory and creditors ledger. Pricing difference is posted to the cost price adjustment account

• Short Delivery (Tracking) – no impact on stock or the ledger

• Pricing Difference (Tracking) – no impact on stock or the ledger 

NOTE: The Return Type list box remains enabled against each Return Code UNTIL the code is used on a request, shipping or credit document. Once a code has been used, the Return Type field becomes disabled