When a customer returns product to go back to the vendor, you need a temporary location to manage the returned product until it makes its way back to vendor. Inform ERP handles this situation with a virtual Return Goods warehouse.
At the time of initial implementation, DDI System will set up one and only one Return Goods warehouse for you, regardless of the number of vendors, warehouses, or branches. See Set up warehouses.
DDI recommends consulting with DDI Customer Care before adding or modifying any warehouse settings.
The Return Goods workflow proceeds as follows:
- When you enter return as described in Create a return order , the transaction takes place in the Return Goods warehouse.
- When you are ready to return them to the vendor, locate all Return Goods: go to Purchasing > Special Purchase Requisitions. From the P/O Type list, choose Vendor Return, and then click Search.
- You can then make a return PO, and it deducts out of this warehouse. Select the check box beside the product, and then click Purchase. You can do this for only one vendor at a time.
On the Add Vendor pop-up, make sure the vendor to whom you want to return the goods appears, and then click OK.
You will be prompted to select an existing P/O with this vendor or create a new one.
- The new or existing Purchase Order appears with the return goods on it. Click Save to complete processing. The Purchase Order to return the product to the vendor and collect the cost is made.
- Finally, create a Stock Receipt for the return PO: Purchasing > Stock Receipts. When you receive a negative PO, Inform ERP reduces the inventory: the initial customer return gets invoiced and increases inventory, resulting in one in stock. When you receive the negative PO, it reduces the inventory back down to zero.
Note: If you will be using the Return to Vendor option in the Sales Order but will not be using the Special PO Requisition to create the return PO to the Vendor, then you can create the return PO manually coding it to the Return Goods Warehouse.