1. Returns Management Presented by: Carol Kossoris, CPA, MBA
Heartland Business Systems

2. Agenda Returns Transaction Entry Inventory Gotcha’s
Payables Transaction Entry
Sales Transaction Entry
Receivables Transaction Entry
Q&A
We will start with the hard stuff, Vendor Returns including the Inventory errors you may run into.
Then we will cover the Customer Returns.

3. Returns Transaction Entry
Show of hands:
Please stand all those who have done Vendor Returns through Purchasing
Now sit down if you sometimes run into error messages when doing Vendor Returns
Those of you that just sat back down should discuss with those standing, how they do a days work in a day.

4. Document Types
Return
Return w/Credit
Inventory
Inventory w/Credit

5. Document Types-Return
Returning against a PO
The item is not matched to an invoice and a vendor credit will not be issued
The item has not been removed from inventory
If the item is being replaced, check Replace Returned Goods to reopen the PO if Received or create a new PO if Closed
DEMO
Generally, you would choose “Returns” if the product just arrived and upon inspection it was determined to be defective and needed to be immediately returned.
Vendor Doc No can be used for an RMA number if you have one.
Purchase Order SOFTEL BACK FABRIC
Receivings Transaction Entry
Return Transaction

6. Document Types-Return w/credit
Returning against a PO
The item is matched to an invoice and a vendor credit will be issued
The item has not been removed from inventory
The item is not being replaced
The return transaction must be manually applied to the invoice from the vendor
Choose “Returns w/credit” if the product just arrived and upon inspection it was determined to be defective and needed to be returned but the Invoice has already been received.

7. Document Types-Inventory
The item layer being returned is from an Inventory Receipt
An Inventory Adjustment or Sales Return
The item from a PO has been removed from inventory
The item is being replaced
PO Number will be grayed out

8. Document Types-Inventory w/credit
The item layer being returned is from an Inventory Receipt or the PO Invoice has been posted
An Inventory Adjustment or Sales Return
The item is not being replaced
The return transaction must be manually applied to the invoice from the vendor
Replace Returned Goods will generate a new PO
DEMO
The least restrictive type.
Inventory must be on hand and available
DEMO Return Transaction SOFTEL BACK LEATHER, Replace Goods, View New PO

9. Inventory Gotcha’s

10. Partials-Returned Item not being Replaced
You must manually close the purchase order line after the non- returned Items have been Invoiced using the Edit Purchase Orders screen
Then adjust costs if needed on the Adjust Costs screen.
Then if necessary, correct the accrued and inventory accounts with a journal entry.

11. Wrong PO Item Received Return with Replace Returned Goods
Receive correct PO Item

12. GP has Allocated my Item I need to Return
Release the Allocation
SOP Qty Fulfilled = 0
Reverse an MO Receipt
Cannot Release Allocation (SOP Invoice Posted)
Decrease Adjustment
Invoice PO Item
Enter Credit/Return in AP
If replacing Item-New Internal PO or Increase Adjustment
If you cannot Release the Allocation-start with an Inventory Adjustment
Decrease Adjustment-Cost Consideration next slide

13. Inventory Adjustment with an Average Perpetual Item
Adjust all quantities out
Adjust in only the returned quantity at the receipt cost
Adjust out returned quantity
Adjust in remaining at old average cost.

14. Payables Transaction Entry

15. Document Type = Return Treated in GP like a Credit Memo
Inventory module is not affected

16. Sales Transaction Entry

17. Type ID = Return
To return goods once the Items are on your dock (Not a true RMA module)
Sales quantity total in Inventory Quantities will be reduced
Sales Returned Quantities Entry to select quantity type to return the inventory to
On Hand, Returned, In Use, In Service, Damaged
No dock receiving paperwork out-of-the-box
Could use Other Form if paperwork is needed
Use Batch (Work) for Authorized Returns List not yet at the dock

18. Receivables Transaction Entry

19. Document Type = Return Treated in GP like a Credit Memo
Inventory module is not affected

20. Q&A

21. Thank You Carol Kossoris, CPA, MBA Senior ERP Consultant
Financial and Distribution Certified
Heartland Business Systems
@GPUG