by Barbara Plagens for KCP Dynamics
In the last blog, we created a Sales Return Order in Microsoft Dynamics NAV 2016. This week, we continue by updating and processing the Sales Return Order.
As a reminder, in the last blog we created a Sales Return Order, by using the Copy Document functionality to copy a Posted Sales Invoice for a Sales Order to Customer 20000 – Selangorian Ltd. The Sales Order included two lines; the first line for a quantity of one Sarajevo Whiteboard (1984-W), the second for 25 Moscow Swivel Chairs (1980-S).
Mark, the Sell-to Contact at Selangorian called to report that two of the chairs are defective. An agreement is reached with Mark to return the two chairs and send replacements. Internally, Cronus contacted the vendor and after discussion agreed to repair the returned chairs for a credit instead of returning the chairs to the vendor.
Our Sales Return Order appears as shown below.
Update the Sales Return Order
When a customer is not returning all purchased items from the copied document, use the following steps to update the Sales Return Order:
- Delete any lines for items not being returned; e.g. delete the line for the SARJEVO Whiteboard, blue.
Update the remaining lines for items being returned; e.g. complete the following:
a) Return Reason Code: select a reason; e.g. select the option to repair the returned items.
NOTE: When the Default Location Code field is populated for the selected Return Reason Code, the Location Code field on the line updates to the Default Location Code. When the Inventory Value Zero checkbox is selected for the Return Reason Code, the Unit Price field is updated to a zero value.
b) Quantity: update the quantity; e.g. change the Quantity to 2.
In our example, the Sales Return Order now displays as shown below.
Create Return-Related Documents
From the Sales Return Order, it is possible to create the replacement documents needed to manage the return. This feature enables companies to provide superior customer service.
Use the following steps to Create Return-Related Documents:
1. From the Sales Return Order, click Home → Create → Create Return-Related Documents; the Create Ret.-Related Documents page displays.
NOTE: Selections made in this page are determined by the actions needed to fulfill the commitment for the Sales Return Order. In our scenario, we do not plan to return the inventory to the vendor and we do not plan to purchase additional inventory – we have sufficient quantity on hand to replace the defective items.
2. Complete the Return to Vendor section:
a) Vendor No: accept the entry or select a vendor to use for the Purchase Return Order and the Purchase Order.
b) Create Purch. Ret. Order: select the checkbox to create a Purchase Return Order to send the items being returned by the customer back to the vendor.
c) Create Purchase Order: select the checkbox to create a Purchase Order to order additional inventory from the vendor to replace the items returned by the customer.
3. Complete the Replacement section:
a) Create Sales Order: select the checkbox to create a Sales Order to send replacement items to the customer.
Our Create Ret.-Related Orders page appears like the screenshot below.
a) Select the document of interest.
b) Click Navigate → Line → Card; the document displays.
c) Close the document to return to the Returns-Related Documents page.
6. Click OK to close the Returns-Related Documents page and return to the Sales Return Order.
NOTE: The Return-Related Documents are processed as if they were created manually; the order of processing depends on which documents were created. For example, when a Purchase Return Order is included in the documents created, the Sales Return Order needs to be Received before the Purchase Return Order is Shipped; in other words, the inventory must be returned to your company before you can return it to the vendor.
In addition, company policy may determine whether it is necessary to wait for items to be returned by your customer before ordering replacement items from a vendor or shipping replacement items to your customer.
Process the Sales Return Order
The exact steps for processing the Sales Return Order may vary depending on whether your company uses NAV warehouse functionality and whether you separate the posting process. For our example, the Receipt and Invoice are posted simultaneously.
Use the following steps to post the Sales Return Order:
1. Update the Sales Return Order:
a) Posting Date: accept or update as needed.
b) Return Qty. to Receive | Qty. to Invoice: accept the default or update to reflect the actual quantity received.
2. Post the document:
a) Click Home → Posting → Post; a posting dialog displays.
b) Accept the default or update as needed.
c) Click OK; the dialog page closes, the Sales Return Order posts.
NOTE: Posting the Invoice from the Sales Return Order results in the posting of a Sales Credit Memo. When the Inventory Value Zero checkbox is checked for the Return Reason selected on the Sales Return Order line, the Sales Credit Memo and replacement Sales Order have a Unit Price of zero.
Thank you for checking out our blogs on Sales Return Orders.
Please feel free to contact KCP Dynamics with your questions and check back for more tips and tricks for Microsoft Dynamics NAV 2016 from KCP Dynamics!