Overview

One of the challenges of managing returns is ensuring the return is linked to the sales transaction it is being generated against and that only items originally shipped are returned. Data entry mistakes can result in returns of items and/or lots that were never shipped or quantities that exceed what was originally shipped.

The NorthScope Sales Order Return transaction allows users to quickly generate returns against Posted Invoices without the risk of returning items and/or lots that were never sold or returning more than was sold.

Processing a NorthScope Return against a posted Invoice provides the user with a simple interface that allows them to direct the return to the correct Site, assign the Carrier, enter the returned quantity, and identify which lots are being returned from what was originally shipped. It also keeps track of all previous returns to ensure that the return only return quantities and lots that are remaining. Posting the return will update the original invoice to only allow returns for the remaining items that have yet to be returned.

Prerequisites

• Transaction Class setup
  • Return Transaction Class
  • Order Transaction Class
    • Transaction Class for Returns -property
• Reason Codes & Notes
  • Return Reason Codes
• Preferences
• Require a Note for all Returned Lots
• Require a Reason Code for all Returned Lots

Understanding the data flow

When a return is saved as ‘Ready to Post’ and the Host system integration is set to Timed/Immediate, a return is created in the host system as a Sales Transaction in the Sales module. If the original transaction had created sales program settlements, the return transaction creates negative settlement transactions to correct the settlement balance. The return transaction creates reverted journal entries.

Step 1: Selecting the invoice for return

The first step in the return process is to search for the invoice. Expand the Sales Order module and select Transactions, click the ‘New’ toolbar icon and select ‘Return’. This opens a ‘Find an Invoice’ page, where invoices can be searched. Enter the original Invoice number to the ‘Invoice #’ field. Note: Enter the Invoice number, not the Order number.

Note: The status of the original transaction must be Ready to Post or Posted.

The Return Site and Return Carrier can also be selected, but these fields are not required. The ‘Return Site’ lookup displays all active sites and the ‘Carrier’ lookup displays all active carriers. After entering the ‘Invoice #’ (and Return Site and Return Carrier), click the ‘Find Invoice’ toolbar icon.

Step 2. Entering the return information

When the invoice is successfully found, the header section and the grid section populate with the transaction details.

Note: An invoice cannot have multiple returns open simultaneously. A return must be posted before a new return can be created. If a user is trying to create a return for an invoice, which already has an open return, a message is displayed for the user with the open return transaction ID.

The header section displays the following information:

• Invoice #: This field displays the entered Invoice #. When the invoice information has been retrieved the invoice number field becomes disabled.
• Invoice Date: This field displays the date the invoice was created. This is for informational use only and cannot be edited.
• # Prev. Returns: Displays the number of previous posted returns created for the invoice.
• Transaction Class: The field defaults to the ‘Transaction Class for Returns’ selected on the original transaction’s transaction class. The transaction class can be changed.
• Return Invoice #: This field defaults to (Use Next Document) if the ‘Default Next Return Number From’ property on the transaction class record is set to “Return Transaction Class”, but the ID can be edited. If the property is set to ‘Source Invoice’, the ID defaults to the original invoice number with a prefix ‘R-‘.
• Return Date: This field allows users to enter a Return Date. The field defaults to the current date, but it can be edited. The date is used as the transaction date.

The grid section displays all items assigned to the invoice with their production batches. An item can be displayed multiple times in the grid, if it was allocated from multiple lots. The grid section displays the following details:

• Clean Out: Checking the Clean Out check box, populates the ‘Returned Units’ and ‘Returned Weight’ with the ‘Rem. Units’ and ‘Rem. Weight’ amounts. Un-checking the check box zeroes the ‘Returned Units’ and ‘Returned Weight’ fields.
• Item: Description: Displays the ID and description of the item assigned to the invoice. This field is for informational use only and the field cannot be edited.
• Production Batch: Displays the Production Batch where the item was allocated from. If the item was allocated from multiple production batches, the item is listed multiple times in the grid. This field is for informational use only and the field cannot be edited.
• Sold Units: Displays the total amount of the units that were allocated from the Production Batch and sold. This field is for informational use only and the field cannot be edited.
• Rem.Units: This field displays the Remaining Units that have not been returned. This is calculated by extracting previously returned units from the Sold Units. This field is for informational use only and the field cannot be edited.
• Units UOM: Displays the unit-of-measure for units. This field is for informational use only and the field cannot be edited.
• Sold Weight: Displays the total weight that was allocated from the Production Batch and sold. This field is for informational use only and the field cannot be edited.
• Rem. Weight: This field displays the Remaining Weight that has not been returned. This is calculated by extracting previously returned weight from the Sold Weight. This field is for informational use only and the field cannot be edited.
• Weight UOM: Displays the unit-of-measure for weight. This field is for informational use only and the field cannot be edited.
• Returned Units: This field allows users to enter the units of the item that is being returned. When the Clean Out check box is used, the field populates with the ‘Remaining Units’. The quantity cannot be greater than the Remaining Units. 
• Returned Weight: This field allows users to enter the weight of the item that is being returned. When the Clean Out check box is used, the field populates with the ‘Remaining Weight’. The quantity cannot be greater than the Remining Weight. 
• Return Site: This field allows users to select the site where the item is being returned. If the Return Site was selected in the header section, the Return Site in the grid section defaults to this site for each line item. The Return Site is required to create a return transaction.
• Return Warehouse Lot: This field allows users to enter the Warehouse Lot where the item is being returned. This field is only editable when the Return Site is a warehouse lot tracked site and the field is required.
• Return Reason Code: This field allows users to enter Return Reason Code. The Reason Codes are pulled from the Reason Codes & Notes master list (Company > Reason Codes & Notes > Sales Order: Transaction Detail: Return). This field is not required to create the return transaction even if the preference ‘Require a Reason Code for all Returned Lots’ is set to Yes. The reason codes can be added later on the transaction record allocation screen.

Note: The return details (returned units & weight, warehouse lot, site and reason code) can be edited on the transaction record.

Click the ‘Build Return’ toolbar icon to create the return transaction.

Step 3. Creating the return

When the Build Return toolbar icon is clicked on the ‘Find an Invoice’ page, the transaction record is created. The grid section of the home tab displays the items that are being returned with the amount that was selected to be returned.

The ‘Order Date’ in the header section defaults to the ‘Return Date’ entered on the ‘Find an Invoice’ page. The site and carrier fields on the record populate with the values selected on the ‘Find an Invoice’ page.

On the shipment tab, the ‘Shipped’ and ‘Invoiced’ dates auto-populate with the ‘Return Date’, but these are editable. The ‘Invoice #’ auto-populates with the transaction ID.

Sales Programs are automatically reverted for the returned amounts. E.g. An order has 2 units and a Brokerage Sales Program amount $10. If one unit is returned, the return transaction creates a negative Brokerage Sales Program for $5. When the return transaction is posted, a negative settlement is created.

Return transactions credit the original invoices Accounts Receivable account for the returned amount and debit the Sales Return Account for the same amount. If the returned item does not have a Sales Return Account configured, a Sales Account is used as the debit account.  

Step 4. Editing return details

If the return details require editing, click the ‘Allocate Item’ grid toolbar icon.

Note: This step is not required, if the return details don’t require editing.

The ‘Allocate Item’ page is similar to the ‘Find an Invoice’ page and the grid section of the page displays all items from the original order transactions. Here users can edit the following details:

• Returned Units
• Returned Weight
• Return Site
• Return Warehouse Lot (only enabled if the selected site is warehouse lot tracked)
• Return Reason Code

An item that was set to be partially returned on the ‘Find an Invoice’ page is displayed on two lines. The first line displays the returned quantities and the second line displays the sold and remaining quantities.

Note: Returned Units/Weight cannot be greater than the Remaining Units/Weight. 

Editing return quantities

To remove an item from the return transaction, check the ‘Clean Out’ check box or enter zero quantities to the ‘Returned Units’ and ‘Returned Weight’ fields.

To add an item to the return transaction with full sold quantities, check the ‘Clean Out’ check box or enter the quantities to the ‘Returned Units’ and ‘Returned Weight’ fields. If the ‘Return Site’ is a warehouse lot tracked site, enter the ‘Return Warehouse Lot’ ID.

Note: Only the items from the original invoice can be added to the return transaction.

To increase the return quantity of an item that was set to be partially returned, enter the appropriate quantities to the ‘Returned Units’ and ‘Returned Weight’ fields. If the Return Site, Return Warehouse Lot and Return Reason Code are the same for all return quantities, enter the amounts to the first line. If one of the return details (e.g. Site) is different, enter the quantities to the second line with the return details.

To decrease the return quantity, enter the appropriate quantities to the ‘Returned Units’ and ‘Returned Weight’ fields. If the item was set to be partially returned, use the first line to correct the quantities.

Saving changes

Remember to add a reason code for each return line, if the Sales Order Preference ‘Require a Reason Code for all Returned Lots’ is set to Yes. Remember also to add a note for each returned Lot, if the Sales Order Preference 'Require a Note for all Returned Lots' is set to Yes.

Click Save to save any changes made and to refresh the page. After saving and closing the ‘Allocate Item’ page, the grid section of the transaction record is updated accordingly.

Step 5. Posting the transaction

Once all the return information has been reviewed, change the Status to ‘Shipped’ and Save the record. If the return transaction has multiple shipments, change the status of the shipments to Shipped in the Shipments tab before changing the transaction status. Then, change the status to ‘Ready to Post’ and Save. If the Integration Setup for SO Invoice is set to Timed or Immediate, the transaction is sent to the Host system as a return transaction.