The Special Purchase Requisitions Screen allows creation of a Purchase Order which was previously requested from a sales order writer. This includes merchandise returns.
This workflow functions best when there is a dedicated G/L account specified in Accounting > General Ledger > G/L Control Table > Vendor Return Inventory.
Please note that the Special PO Requisition works only when the Sales Order is still in “open status.” If the Sales Order has been invoiced, a regular negative quantity Purchase Order must be used to facilitate the shipment of the items back to the vendor.
When a customer returns an item on a Sales Order, the system gives 4 options for “disposing” of the merchandise (Stock, Vendor, Discard, Inspect and Warranty).
When “Return to Vendor” is selected, the merchandise is automatically transferred into your Returned Goods Warehouse. Multi-branch organizations have a Universal Returned Goods Warehouse which applies to all active warehouses. To view the contents, go to Inventory > Inventory Value Report, bypass the first window by clicking OK, and select only Returned Goods on the second window.
- Enter a negative sales order
- Go to Sales > Order and complete the header tab. Do not put the item(s) on a truck.
- Proceed to Detail > Line Items to enter the returns.
- Use a negative sign to indicate a returned quantity.
- A Purchasing and Pricing History window will open. Choose the item(s) from the original sales order if applicable.
Caution: Inform will allow return of a system-recognized item even if the customer has no purchase history.
- The Return Action window will open. Choose Return to Vendor.
- The merchandise will be placed in the warehouse designated as Returned Goods. Proceed to the Final Tab and use a Miscellaneous Charge Code, if necessary, to add a restocking or other fee as a positive amount.
- Ship Confirm the return. It will not appear on a Truck Manifest.
Do not invoice the Sales Order until the return is completed. If the sales order is closed before the return is processed, it will have to be handled as a regular negative value PO.
- Request a special purchase order
- Go to Purchasing > Special Purchase Requisition.
- Select PO Type: Vendor Return and click Search. All pending items requested to be returned to vendors will display on a formatted screen.
- Select one vendor at a time and click Purchase. If you select “too many” disparate items, the system will combine everything into a return to one vendor.
- A list of existing open Purchase Orders for the vendor will display. Click New to establish a new PO to handle the return.
- Select the appropriate items to be returned to create the PO.
- Return the merchandise and process the stock receipt
- Go to Purchasing > Stock Receipts to complete the return in the system.
- If the vendor credit amount is known, the credit memo can be entered directly through the stock receipts screen. Product sent back from the Returned Goods Warehouse will use the Vendor Return Inventory G/L account.
- Alternatively, you can wait for the vendor to acknowledge receipt before entering the credit in A/P Invoice Entry. The G/L account number in the invoice distribution will be Vendor Return Inventory.
- Invoice the customer credit.
- Assign the orders to a billing batch after you have confirmed that vendor credit will be issued.
- The customer can use the credit to offset future purchases. You may also apply the credit to current balances owed via Cash Receipts Posting.