Return Damaged Goods Through Order Entry

In the Order Processing module, if a credit memo is issued for an item being returned and the item will be put back in stock,  it will then be available to sell.  However, if a customer is returning a defective item, it should not be returned to stock (because the system will consider the item then available to sell, but it really isn’t).  Below are some options on how to handle damaged / defective goods that are returned from a customer.

OPTION 1:   Enter the credit memo through Order Processing for the original item, letting the quantity go back into stock. 

• On the first screen of the order, change Field 6: ‘Sale type:’ to a 3 - Credit
• Go immediately into the Purchase Order module, Task 4 (Ship-back Entry & Editing), Sub-task 1 (Enter New Shipper)
  • Enter and post a shipper for the vendor and item number.  This takes the item quantity out of stock.
  • Send the item back to the vendor to await a credit from the vendor.

OPTION 2:   Enter the credit memo through Order Processing for the original item

• On the first screen of the order, change Field 6: ‘Sale type’: to a 3 -Credit, then Field 12: ‘Skip qty adj:’ appears on the screen, enter in a N or Y.
  • Note: If this field is changed to a Y, the quantity of the items on the credit memo will not be added back into inventory.

OPTION 3:   Using a pre-fix.   First a couple of parameters need to be checked, go to:

• Order Processing (Module 6)
  • System Management Functions (Task 32)
    • Modify Parameter Files (Sub-task 22)

Look for the following parameter:  DAMAGED’ITM’PREFIX=899   This is the Prefix used for entering damaged items back into the Inventory Control module followed by the actual item number.  Any prefix can be used, i.e., 999, 900, 899, etc…however for the example 899 will be used.

• On the first screen of the order, change Field 6 ‘Sale type:’ to a 3 - Credit, then following message will appear:   “If you are putting an item back in stock and it is defective: use the original item # with 899 in front of it.”

• On the second screen,  enter 899 in front of the original item number.  For example, if the original item number is OCE-12345, you would enter:  899OCE12345. 
• The system will treat 899OCE12345 as a NON-STOCK item

Ø      The NON-STOCK pop-up screen will ask for the description, product code, report class, cost, etc…

§         The system will remember and use all of the information from item OCE-12345 for this return.  So when 899-OCE12345 is on the Credit memo and the NON-STOCK pop-up screen appears, it will use the same product code, report class, average cost, same price, group discount, etc… as item OCE-12345.

Ø      By using 899OCE12345 on the order:

• The quantity doesn’t go back in to the OCE-12345 item.
  • ​A report may be printed for all the items starting with item number 899 and  ending with item 899ZZZZZZ.  This report will show dollar amounts for damaged items.

Because the 899-OCE12345 is treated like a NON-STOCK another parameter to take a look at is.  Look for the following parameter:  ADD’NSTK=

·        1st character: Y-default to yes,   N-default to No;  A-always add the item;   V-never the item or   X – item must first be in the Inventory Master file

·        2nd character: `Can items be processed without adding to Inv/Whs?' Y-yes or N-no (ONLY used if first character=Y or N)

Ø      If the first character of this parameter is set to Y, when you type in a non-stock item number, the system will prompt: “Add item to inventory?Y” and it will default to a Y.  By pressing the ENTER key it will add the non-stock item to the Item Master and Warehouse Master files. 

Ø      If the first character of this parameter is set to N, when you type in a non-stock item number, the system will prompt: “Add item to inventory? N” and it will default to a N.  By pressing the ENTER key it will not add the non-stock item to the Item Master and Warehouse Master files.

Ø      If the first character of this parameter is set to A, when you type in a non-stock item number, there is no prompt to ask if the item should be added to inventory, it will automatically add it to the Item Master and Warehouse Master files.

Ø      If the first character of this parameter is set to V, when you type in a non-stock item number, there is no prompt to ask if the should be added to inventory, but it will not add it to the Item Master and Warehouse Master files.

Ø      If the first character of this parameter is set to X, you can’t process non-stock items.  The item MUST be in the Item Master file before it can be put on an order. 

§         If this parameter is set to X, you will get the message: "No match found for selected item#/class", or the message “Item # not found in inventory”.     If this is the case, you either need to change the ADD’NSTK=    parameter to allow NON-STOCK’s  OR change the DAMAGED’ITM’PREFIX=  to blank and not use OPTION 3.