item returned, but don't want to increase my inventory

cveale · 2010-12-14

Hello, I am using NAV 2009 SP1 RTC.
here is the situation, I sold a customer a piece of tile.
The tile broke so the customer returned it.

Now I want to return the customers money, but I do not want to put it back into my iventory because the tile is broken.

I am going to use the Sales Return Order.

Any ideas ?

Savatage · 2010-12-14

1 method: We use two locations: Active & Damaged - Pretty self explanitory 8)

When your system was set up - was there a plan on handling damaed Inventory?

cveale · 2010-12-15

The database is being set up as we speak.

So one way would be to set up a 'damaged' location.

Do the SRO, and receive it to the 'damaged' location.

Then at the end of the month, do a negative adjustment to get rid of it right ?

geronimo · 2010-12-15

another way would be to credit the item by using a g/l account so it doesnt pass through the stock?
but then you cant see it was damaged on the stock...

Savatage · 2010-12-16

at the end of the month - we run the phy inventoy joural - calculate inventory - filter on "damage" location so it just pull those entries & we zero them out & change the descrption to "Wipe out Damage Inventory"

Note in the inventory setup we set it to "Item & location" because we have more than 1.

We also print out the test report so we have a print out of what was done.

NOw, this is what we've always been doing so I 'm not upto date on alternative solutions.

But I know our accountants like to know what that total was each month so they can put in their figures.

basically we get returns alot. and some are resellable & some are not - so it's good for us to have the options of putting it back to stock or not.

So you can go over with the accountants if this solution is good for them and they can understand the process.

David_Singleton · 2010-12-16

cveale,

member here can give you ideas, and say how they have done it. I can add that most Customers I know of use multiple warehouses like Savatage suggests. But in reality that's what your partner is for. They will have done this multiple times for other clients, but most importantly only they know how your business works, so will know the correct advice to give you.

Have you talked with them about this?

themave · 2010-12-16

You do not need to setup a different location, you can use return reason codes

when you set them up there is a option check box Inventory Value Zero

so, you could setup a code Damaged with the inventory value zero check and if you entered that return reason code, it would not put it back into inventory

then setup a reason code for good item, where the inventory value zero is not checked.

(on Edit, this is in version 2 - 4, have not looked at later versions)

cveale · 2010-12-17

Good posts guys, thanks !

Question, I have 'exact cost reversing mandatory' turned on, and also 'location mandatory' turned on.

So in the SRO, if I use the 'Copy Document' functionality to bring in the original sale, it brings it in with the original location.

I would just change this location to 'damaged', and post. This way my costing will be the exact same as what it was when I sold it.

Do any of you ever use the 'inventory value zero' flag ? (on the reason code )

aseigle · 2010-12-17

themave wrote:

You do not need to setup a different location, you can use return reason codes

when you set them up there is a option check box Inventory Value Zero

so, you could setup a code Damaged with the inventory value zero check and if you entered that return reason code, it would not put it back into inventory

then setup a reason code for good item, where the inventory value zero is not checked.

(on Edit, this is in version 2 - 4, have not looked at later versions)

In the currect verion, using the Return Reason Code that has Inventory Value Zero will still bring the piece back into inventory, it will just do so with 0 value.

themave · 2010-12-17

aseigle wrote:

In the currect verion, using the Return Reason Code that has Inventory Value Zero will still bring the piece back into inventory, it will just do so with 0 value.

good to know, you can also on the return reason code enter a default location, so you could save a little work, by having the return reason put it in the damaged location at zero value all in one step.

aseigle · 2010-12-17

yes, that is the easiest way to return it to inventory as damaged at 0 value.

Alex_Chow · 2010-12-17

Another method is to return it as a Resource. Setup the resource number to be the same as the item number so you can see what items were returned. This way, you won't need to fuss with having to do inventory adjustments.

Savatage · 2010-12-17

Another use of the 2 locations for us - is that we can print a credit memo for the customer telling them exactly what was good and what was bad item by item & qty's. We currently have 85,000 items in our system and returns aren't always 1 or 2 items, it could be alot more. So location change works well for us because it allows us to enter batches of returns quickly, accurately & with item detail.

Reports based on location code make it easy to create reports on what's coming back, prices, qty's, which customers, etc.

cveale · 2010-12-21

Thanks for the input guys, i really appreciate it.

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item returned, but don't want to increase my inventory

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