Returns orders are created for merchandise returns or price adjustments for the customer. Merchandise returns can be returned and stocked back into inventory or returned but not re-stocked (damaged goods).
Depending on your company's needs, there are three main process flows for return orders:
Standard Return Process - This is the complete return order process used for any type of return order.
Express Return Process - Use this process to perform an abbreviated return process that quickly outputs a credit memo for the customer without requiring credit memo authorization. To set up this process flow, you must select the Express Return Orders check box for a return order class in Order Class Maintenance.
Express Return Receipt Process - This process allows you to select specific steps to skip from the standard return order process during receiving. To set up this process flow, select the Use Express Return Receipt check box on the Effect on Inventory tab in Customer Service Control Maintenance.
To process a return order:
In Order Entry, enter a return order.
Enter a customer code or name in the Customer Code or Customer Name field.
Verify/change order entry and customer defaults, such as the shipping and sales location, ship complete, ship backorder complete, freight free, sales representative, payment terms, etc.
Enter a Returns type order class in the Order Class field.
If you have an associated invoice, enter the invoice number in the Associated Invoice field. The Allow Return of Products not on a Selected Invoice option in Customer Service Control Maintenance controls whether returned products must be on this invoice.
Add order notes and/or remarks if necessary using the Notes or Remarks button in the ribbon.
Click the Ship To tab, and verify/change the ship-to address, sales tax, and routing information (routing is for in house fleet delivery systems only).
Click the Bill To tab, and verify/change the bill-to address and credit card information. For information on entering credit card numbers, see Credit Card Number Entry.
Click the Additional Charges tab, and add additional charges if necessary.
Click the Edit Items button in the ribbon. The O/E Line Item Entry window appears.
Enter a product code in the Product Code field. You can also click the Previous Invoices or Invoices for Item button in the ribbon to select products from previous invoices for the selected customer or selected invoices for a product.
Enter the quantity being returned in the Qty field. You do not have to enter a negative sign. It will display automatically after the quantity is entered.
Select the adjustment type (Price or Inventory). A price return suggests the return order is for a price variance. Thus, the amount in the Price field would be the variance amount. Inventory adjustments allow you to select whether you plan to receive to determine whether inventory returns will be received and restocked or not stocked (quantity variance).
Enter a valid return code corresponding to the adjustment type in the Return Code field. A return code is a requirement for each line of the return order. This code is the first step in determining the effect of the return for this line, and is also used to determine account masking. Return codes are defined and maintained in Return Code Maintenance.
Verify/change the unit of measure, price, and price adjustment, then click the Enter button to enter the line item in the Items grid.
Verify all settings in the Items grid.
Add line item additional charges if necessary using the Additional Charges button in the ribbon. For more information, see Additional Charge Entry.
Add notes and/or remarks for a line item if necessary using the Notes or Remarks button in the ribbon.
Repeat substeps j to q for all products for the order.
Click the OK button in the ribbon.
Click the OK button in the ribbon. The order is created. The order status is now Open.
In Return Order Receiving Entry, verify received quantities equal the quantities on the return order, and receive any returned merchandise.
Verify the shipping location is the location for the receipt. The location defaults to the default location for your user ID.
If you want to only display return orders for a specific customer, clear the All Customers check box, and enter a customer code or name in the ID or Name field.
Click the Show Data button in the ribbon if you made a change in substep a or b.
If you want to position a specific return order at the top of the Return Orders grid, enter the order number in the Position to Order # field.
Select the return order you want to receive.
Click the Receive button in the ribbon. The Return Order Receipt window appears.
If the return order quantity is the same as the received quantity, click the As Is button in the ribbon to completely receive the line items. Otherwise, enter the quantity received for each line item in the Received Qty column.
Click the Receive button in the ribbon. The receipt is received, and the receipt number is displayed. This action receives the merchandise and allows confirmation. If you have not received all line items or a partial quantity, the return order is left open for future receipts.
In Return Order Receipt Confirm, confirm the receipt of returned merchandise.
Enter a receipt number in the Receipt # field. The Items to be Returned grid displays the line items of the selected receipt.
If the quantities are not correct, click the Return button in the ribbon. The Receipt Item Return window appears, and allows you to enter a disposition code, quantity returned, and bin for each line item. One product can have several disposition codes. Click the Enter button in the ribbon after you enter this information, then click the OK button in the ribbon.
If the quantities are correct, click the As Is button in the ribbon. The Items tab changes to allow you to enter a disposition code and default bin for the return. This is the last determining factor as to the dispersal of the merchandise and the accounts that are affected. This is accomplished by the disposition code selected and the quantity entered. Click the OK button when you are finished.
If you do not want to automatically adjust inventory, clear the Adjust Inventory check box.
If there are additional charges for the return order, click the Additional Charges tab and enter the charges. When you are finished entering charges, click the Items tab.
Click the OK button in the ribbon. The receipt is confirmed.
In Return Order Credit Memo Authorize, review the return order.
Enter the customer code or name in the ID or Customer field.
Enter the return order number in the Order Number field.
Enter the return receipt number in the Return Ticket # field. Line items appear for the selected receipt.
If you want to view the line items for the order, click the View Order button.
Enter any price and price adjustment changes in the Unit Price and Price Adjustment columns.
If you want to add additional charges for a line item, click the Item Charges button, and enter the charges.
If you want to add additional charges for the entire order, click the Additional Charges tab and enter the charges.
Click the OK button in the ribbon.
In Confirmed Pick Demand Inventory Adjust, adjust inventory if you cleared the Adjust Inventory check box in step 3d.
Select filtering options for selecting orders for inventory adjustment. You can indicate the sales or shipping locations, customer, shipper, pick demand, and/or route. You can also indicate a specific order or customer purchase order number.
Click the Show Data button in the ribbon. The Results tab displays the pick demands that meet the criteria you selected in substep a.
Select the check box in the Adjust column of each pick demand for which you want to adjust inventory. You can click the Select All button in the ribbon to select the check box in the Adjust column for all displayed pick demands.
Click the Print Options tab, and select options for the Inventory Adjustment Report that is output when you adjust inventory for pick demands.
Click the Adjust Selected button in the ribbon to decrease the inventory and secure the costs for the products. If account masks resolve correctly, this allows you to create a credit invoice for the customer.
In Invoice Create and Print, create and print the invoice.
Select one or all shipping and/or sales locations.
Select one customer or all customers and/or one order and pick demand.
Verify the invoice date and posting period are correct.
Select whether to create and print invoices or only create invoices.
If you do not want to print a summary report, clear the Print Summary Report check box.
If you want to change the batch number, click the Batch tab in the ribbon, and use the ribbon buttons to select or open a batch. Click the Home tab in the ribbon after you have selected a batch.
If you are printing invoices, click the Print Options tab and select output and processing options.
Click the Print or Create button in the ribbon.
In Invoice Post, post the invoice to the general ledger.
Verify the posting period and year. The period and year default to the current posting period and year for the Customer Service module.
Select a transaction and posting option.
Click the Print Options tab and select output and processing options.
Click the OK button in the ribbon. The posting is completed.
For a visual overview of this process, see Return Orders Diagram.
To process a return order:
In Order Entry, enter a return order.
Enter a customer code or name in the Customer Code or Customer Name field.
Verify/change order entry and customer defaults, such as the shipping and sales location, ship complete, ship backorder complete, freight free, sales representative, payment terms, etc.
Enter a Returns type order class in the Order Class field. The Express Return Orders check box must be selected for this order class in Order Class Maintenance.
If you have an associated invoice, enter the invoice number in the Associated Invoice field. The Allow Return of Products not on a Selected Invoice option in Customer Service Control Maintenance controls whether returned products must be on this invoice.
Add order notes and/or remarks if necessary using the Notes or Remarks button in the ribbon.
Click the Ship To tab, and verify/change the ship-to address, sales tax, and routing information (routing is for in house fleet delivery systems only).
Click the Bill To tab, and verify/change the bill-to address and credit card information. For information on entering credit card numbers, see Credit Card Number Entry.
Click the Additional Charges tab, and add additional charges if necessary.
Click the Edit Items button in the ribbon. The O/E Line Item Entry window appears.
Enter a product code in the Product Code field. You can also click the Previous Invoices or Invoices for Item button in the ribbon to select products from previous invoices for the selected customer or selected invoices for a product.
Enter the quantity being returned in the Qty field. You do not have to enter a negative sign. It will display automatically after the quantity is entered.
Select the adjustment type (Price or Inventory). A price return suggests the return order is for a price variance. Thus, the amount in the Price field would be the variance amount. Inventory adjustments allow you to select whether you plan to receive to determine whether inventory returns will be received and restocked or not stocked (quantity variance).
Enter a valid return code corresponding to the adjustment type in the Return Code field. A return code is a requirement for each line of the return order. This code is the first step in determining the effect of the return for this line, and is also used to determine account masking. Return codes are defined and maintained in Return Code Maintenance.
Verify/change the unit of measure, price, and price adjustment, then click the Enter button to enter the line item in the Items grid.
Verify all settings in the Items grid.
Add line item additional charges if necessary using the Additional Charges button in the ribbon. For more information, see Additional Charge Entry.
Add notes and/or remarks for a line item if necessary using the Notes or Remarks button in the ribbon.
Repeat substeps j to q for all products for the order.
Click the OK button in the ribbon.
If you selected Inventory in substep l, the Return Order Receipt Confirm window appears, and you must continue to the next step.
If you selected Price in substep 1, the Print Credit Memo window appears, and you must skip to step 3.
In Return Order Receipt Confirm, confirm the receipt of returned merchandise.
Click the As Is button in the ribbon. The Items tab changes to allow you to enter a disposition code and default bin for the return. This is the last determining factor as to the dispersal of the merchandise and the accounts that are affected. This is accomplished by the disposition code selected and the quantity entered. Click the OK button when you are finished.
The Receipt Item Return window appears, and allows you to enter a disposition code, quantity returned, and bin for each line item. One product can have several disposition codes. Click the Enter button in the ribbon after you enter this information, then click the OK button in the ribbon.
If there are additional charges for the return order, click the Additional Charges tab and enter the charges.
Click the OK button in the ribbon. The receipt is confirmed. The Print Credit Memo window appears.
In Print Credit Memo, output the credit memo.
Select the appropriate batch for the credit memo.
Verify the correct date and posting period are selected for the credit memo.
Click the Print Options tab and select output options for the credit memo.
Click the Print button in the ribbon. The credit memo is printed. A message confirms the return order is created.
In Invoice Post, post the invoice to the general ledger.
Verify the posting period and year. The period and year default to the current posting period and year for the Customer Service module.
Select a transaction and posting option.
Click the Print Options tab and select output and processing options.
Click the OK button in the ribbon. The posting is completed.
To process a return order:
In Order Entry, enter a return order.
Enter a customer code or name in the Customer Code or Customer Name field.
Verify/change order entry and customer defaults, such as the shipping and sales location, ship complete, ship backorder complete, freight free, sales representative, payment terms, etc.
Enter a Returns type order class in the Order Class field.
If you have an associated invoice, enter the invoice number in the Associated Invoice field. The Allow Return of Products not on a Selected Invoice option in Customer Service Control Maintenance controls whether returned products must be on this invoice.
Add order notes and/or remarks if necessary using the Notes or Remarks button in the ribbon.
Click the Ship To tab, and verify/change the ship-to address, sales tax, and routing information (routing is for in house fleet delivery systems only).
Click the Bill To tab, and verify/change the bill-to address and credit card information. For information on entering credit card numbers, see Credit Card Number Entry.
Click the Additional Charges tab, and add additional charges if necessary.
Click the Edit Items button in the ribbon. The O/E Line Item Entry window appears.
Enter a product code in the Product Code field. You can also click the Previous Invoices or Invoices for Item button in the ribbon to select products from previous invoices for the selected customer or selected invoices for a product.
Enter the quantity being returned in the Qty field. You do not have to enter a negative sign. It will display automatically after the quantity is entered.
Select the adjustment type (Price or Inventory). A price return suggests the return order is for a price variance. Thus, the amount in the Price field would be the variance amount. Inventory adjustments allow you to select whether you plan to receive to determine whether inventory returns will be received and restocked or not stocked (quantity variance).
Enter a valid return code corresponding to the adjustment type in the Return Code field. A return code is a requirement for each line of the return order. This code is the first step in determining the effect of the return for this line, and is also used to determine account masking. Return codes are defined and maintained in Return Code Maintenance.
Verify/change the unit of measure, price, and price adjustment, then click the Enter button to enter the line item in the Items grid.
Verify all settings in the Items grid.
Add line item additional charges if necessary using the Additional Charges button in the ribbon. For more information, see Additional Charge Entry.
Add notes and/or remarks for a line item if necessary using the Notes or Remarks button in the ribbon.
Repeat substeps j to q for all products for the order.
Click the OK button in the ribbon.
Click the OK button in the ribbon. The order is created. The order status is now Open.
In Return Order Receiving Entry, verify received quantities equal the quantities on the return order, and receive any returned merchandise.
Verify the shipping location is the location for the receipt. The location defaults to the default location for your user ID.
If you want to only display return orders for a specific customer, clear the All Customers check box, and enter a customer code or name in the ID or Name field.
Click the Show Data button in the ribbon if you made a change in substep a or b.
If you want to position a specific return order at the top of the Return Orders grid, enter the order number in the Position to Order # field.
Select the return order you want to receive.
If you do not want to authorize the credit memo or print the credit memo immediately after recording the receipt, clear the Price/Charges Review or Credit Memo Print check box.
Click the Receive button in the ribbon.
In Return Order Receipt Confirm, confirm the receipt of returned merchandise.
If the quantities are not correct, click the Return button in the ribbon. The Receipt Item Return window appears, and allows you to enter a disposition code, quantity returned, and bin for each line item. One product can have several disposition codes. Click the Enter button in the ribbon after you enter this information, then click the OK button in the ribbon.
If the quantities are correct, click the As Is button in the ribbon. The Items tab changes to allow you to enter a disposition code and default bin for the return. This is the last determining factor as to the dispersal of the merchandise and the accounts that are affected. This is accomplished by the disposition code selected and the quantity entered. Click the OK button when you are finished.
If there are additional charges for the return order, click the Additional Charges tab and enter the charges. When you are finished entering charges, click the Items tab.
Click the OK button in the ribbon. The receipt is confirmed.
In Return Order Credit Memo Authorize, review the return order.
Enter any price and price adjustment changes in the Unit Price and Price Adjustment columns.
If you want to add additional charges for a line item, click the Item Charges button, and enter the charges.
If you want to add additional charges for the entire order, click the Additional Charges tab and enter the charges.
Click the OK button in the ribbon.
In Print Credit Memo, output the credit memo.
Select the appropriate batch for the credit memo.
Verify the correct date and posting period are selected for the credit memo.
Click the Print Options tab and select output options for the credit memo.
Click the Print button in the ribbon. The credit memo is printed.
In Invoice Post, post the invoice to the general ledger.
Verify the posting period and year. The period and year default to the current posting period and year for the Customer Service module.
Select a transaction and posting option.
Click the Print Options tab and select output and processing options.
Click the OK button in the ribbon. The posting is completed.