Modules»Purchase Order»Return Merchandise for Credit
  • RSS Feed

Last modified on 12/21/2015 11:39 AM by User.

Return Merchandise for Credit

Go to:

  • Purchase Order (Module 7)
    • Ship-Back Entry & Editing (Task 4)
      • Enter New Shipper (Sub-task 1)

 

Step 1.  Enter a New Shipper.  The computer will automatically generate a new shipper number.  The Return Authorization Number (field #2) is user defined – field accepts both alpha and numeric symbols.  Enter all items being returned to the vendor, if many items are being returned, PRINT the shipper (using ‘Action’ 2) first to verify items and quantities.

 

 

Step 2.  Post the Shipper.  Use “Action” 3 to POST the shipper.  Once the shipper has been posted the following occurs:

  • Quantities in the Warehouse Master File (found in Task 19 of the I/C module) are reduced, but the cost remains the same.
  • The items are moved to Task 23: Shipped-Back Items (No Credit) in the Purchasing module.  Note: run the report out of Task 23 at month-end.  The total can be used to create a GL journal entry because the items on the report are no longer counted in the inventory total, however you still ‘own’ them.
  • The report from Task 23 can also be used to keep track of expected credit memos from vendors for returned items.

 

 

Step 3.  Enter Vendor Credit Memo.   Go to:

  • Purchase Order (Module 7)
    • Vendor CR-Memo Entry & Editing (Task 5)
      • Enter New Credit Memo (Sub-task 1)

 

When the credit memo is received from the vendor, enter the information.  At the bottom of the first screen, after all the information has been entered, the system prompts:  “Obtain shipped items list? (Y/N)”, answer Y and enter in the correct Shipper #.  Verify the quantities and cost of items being credited. 

 

You may select “Action” 2 – PRINT to verify accuracy, especially if there were a lot of items returned, plus it can be attached to the vendor’s credit memo.  Then use “Action” 3 – POST/VOUCHER to post the credit memo.  Once this step is completed, the following occurs:

  • The voucher is moved to Accounts Payable – Task #1 (Voucher Entry & Editing).
  • The item(s) are removed from Task #23 in the Purchasing module – Shipped Back Items (no credit).
  • Costs are updated in the Item Master (Task 17) and Warehouse Master (Task 29) files in the I/C module.
  • The item(s) are moved to the Purchased Item History file (Task 18)

 

Step 4. End of the Month.  Various reports may be run, in any number of ways, in Purchased Activity Summary (Task 10).

 

Also remember to run the reports from Task #23 (Shipped-Back Items – no credit) and Task #22 (Received Item – no invoice) to make GL journal entries to account for items that are either future payables or credits and as additions or subtractions to inventory.