There are different ways to manage Returns from your Receivable customers, that you can use for different situations.
Different methods to manage returned goods and when to use them
Method 1: Return on the original Sales Order for single or a small number of items
Method 2: From the Sales module, Tasks menu, Return Goods
Method 3. Consolidated Credit, from Sales module, Tasks menu, Return Goods
Introduction
There are different ways to manage returned goods from your Receivable accounts. The method you choose would depend on the situation and reason for the returns.
To learn how to manage returning goods to your Suppliers (Payable Contracts), click to read about this here: Returning Goods to Suppliers.
Different ways to manage returned goods, and when to use each option
Method 1: Return on the original Sales Order for single or a small number of items
This ensures that the goods are returned at the correct pricing that they were sold at. This can be used for customers returning unwanted items at any time.
Method 2: From the Sales module, Tasks menu, Return Goods
This can be useful at the end of a project when your Receivable customer wants to return all the items left over from that project. All the items will be returned to the Sales Orders you select. A credit will be created from each Sales Order the goods are returned on.
Method 3. Consolidated Credit, from Sales module, Tasks menu, Return Goods
This can be used, for example, at the end of a Receivable customer’s project, where you may wish to create one Credit Note with a new reference, rather than to create multiple credit notes for individual Sales Orders.
Method 1. On the original Sales Order for a single item or a small number of items
This method is useful when your Receivable customer takes more items than may be required for the job, and then returns the items that are not needed.
- Start at Sales > Sales Orders.
- Select the Sales Order you want.
You can see a line for each item on this Sales Order, and the number of items for each line appears in the Quantity column, and the number taken in the Already supplied column.
- To record the number of items returned for a line, enter that number as a negative value in the NOW column.
For example in the second line in the example below, the customer wishes to return 3 items. If you put -3 in the NOW column, you can see that 5 of the second item were originally supplied, 3 have been returned and 2 are remaining on the Sales Order.
- Click Save and Close.
- You can select to print a new Packing Slip with the negative value for the returned goods, if required.
The Sales Order will be updated and the number in the Quantity column and also in the Already supplied column will be updated to 2.
If the Receivable customer has returned all the items on the line of the Sales Order, then the line will still appear, but it will have a value of zero, and it will not appear on the invoice.
Method 2: From the Sales module, Tasks menu, Return Goods
This can be useful at the end of a project when your Receivable customer wants to return all the items left over from that project and you want to allocate items to the correct Sales Orders. A credit will be created for each Sales Order. This method will also ensure that the goods are returned at the original pricing.
- Start at Sales > Return goods.
- Enter the Receivable customer code, or you can search and locate the customer.
- Enter or search for the Stock code, or you can scan the item.
- Select that item to display all Sales Orders for this Receivable customer, where that stock item appears.
- In the Returns column, enter the number of items being returned for each Sales Order you want to return them to.
- Next, click Add items to return list.
- If required, repeat this for another Stock item that is being returned.
Items will be displayed on the right of the screen.
When you have entered all Stock items:
- Click Save.
This now brings up the Taken By window.
If this Receivables customer requires this information to be entered:
- Enter or search for the person who is returning the goods.
- Click Save.
This will depend on the set up for this Receivables customer, if they require to have the Taken By person recorded on their Sales Orders or not.
Next you will see the Confirm window, with the message Show generated Packing Slips.
-
Click Save to produce the Packing Slips that show the number of
items returned.
Method 3: Consolidated Credit, from Sales module, Tasks menu, Return Goods
We usually want to record returned goods against the original Sales Order, to ensure that the goods are returned at the original pricing. However, if your customer wishes to have only one Credit for items on multiple Sales Orders, we can use this method.
This can be used, for example, at the end of a customer’s project when your customer returns all the leftover stock items from that project.
- This method is much the same as the previous method. The difference is that it allows a Consolidated Credit, and will create only one Credit Note rather than creating multiple Credit Notes for individual Sales Orders.
- Start at Sales > Return goods.
- Enter the Receivable customer code, or search and locate the customer.
- Check the field Create Consolidated Credit.
- Enter the Client Order No (If the customer has given you one).
- Enter or search for the Stock code, or scan the item. This will display the Stock Item.
- Double click that item to display all Sales Orders for this customer, where that stock item appears.
In the Returns column:
- Enter the number of items being returned for each Sales Order.
This will ensure that that the correct pricing and reference numbers are put on the new credit.
- Click Add items to return list.
- Repeat for each Sales Order that is applicable.
- If required, repeat this process for another Stock item that is being returned.
Items will be displayed on the right of the screen in the Returning list.
When you have entered all stock items to be returned:
- Click Save.
This now brings up the Taken By window if this Receivables customer requires this to be entered.
- Enter or search for the person who is returning the goods.
This now brings up one Packing Slip to print, showing the returned goods being displayed on one line each for each original Sales Order.
Return Purchased Stock Items to A Different Branch
If your customer returns goods to a different Branch than the one they were purchased from, you can record this at the time of the return and create the stock transfer from branch to branch.
Let’s look at an example where an item has been purchased, invoiced, and dispatched to the customer. Later, the customer has decided to return the purchased items, but to a different branch.
To manage this return efficiently, follow these steps:
- Start at Sales > Return Goods.
- Select the Receivable Account you want, and in the Current branch field, select the Branch where the item is being returned to.
- Untick the field Return to current branch only.
- Search for the stock code of the item to display the relevant Sales Orders for this customer.
- Highlight the appropriate Sales Order and in the Returns field for that line, enter the quantity of items being returned. Click Add items to return list and then click Save.
- A warning message will remind you that the goods were sold from another branch and you can now create the Stock transfer. Click Confirm transfer to proceed.
- Select the Taken by name and click OK. Now you can view the packing slips associated with the transfer. Click OK again.
- The next window invites you to go to the Stock transfer page for the original branch to create the transfer of the item between branches.
- Click Search returned items to update the list. You can see the item which will be marked as Delivered.
- Click into the line and in the Actions tab the item will have been transferred out. Here you can also preview the Stock transfer document. In the Details tab, the Notes field records that the goods were sold from one branch and returned to a different branch.
This confirms the successful return of goods to the original branch to the new branch.
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