DBD: Order Processing - Returning Direct Ship Order

DBD: Order Processing - Returning A Direct Ship Order (Credit Customer And Vendor)

Step 1: Enter the Return Order

To start this procedure you will want to go into Order Entry and enter a new Sales Order. The new order will be the same as the original order, or it will be for just the lines that are being returned to the vendor. The only difference on this order is that the quantities will be negative.

Order Line Entry — Pricing tab, negative quantity

The order summary will show the negative quantity and the negative order dollar amount. This dollar amount should be equal to the original order, or the portion that is being returned to the vendor.

Sales Order Entry — order summary with negative amount

Step 2: Process Purchase Order Receiving

You will then need to take this through Purchase Order Receiving.

You can use the original vendor invoice number if the invoice is still open, or you may use a new invoice number if the vendor supplies you with one.

P/O Receiving — Lines tab, negative quantity

In the receiving, make sure that you are still receiving a negative quantity with a positive cost.

This will then result in a vendor invoice for a negative amount.

A/P Invoice Entry — negative Gross Inv Amt

Step 3: Enter the Credit Invoice to the Customer

After creating the vendor invoice, you will then enter in the credit invoice to the customer. Use the Assign Next button to assign the next invoice number, and your new order number should already be in the Order Number field.

A/R Invoice Entry — new order number

Work through the customer invoice continuing to use the negative quantity and positive dollar amounts. When you get to the summary screen you should now have an invoice total that is the negative amount of the original invoice, or just the portion that the customer has returned.

A/R Invoice Entry — summary with negative Invoice Total

Step 4: Update and Balance Out

Once you are done entering the customer invoice, you can update your receiving and invoicing. At this point the new invoices will be showing under the vendor and customer. They can be used to balance out the original invoices in A/P Check Processing and A/R Cash Receipts respectively.

Frequently Asked Questions

Q: How does a return order differ from a regular order?

A: It's the same process as regular Order Entry, but the quantities are negative instead of positive. The unit sell price and unit cost remain positive.

Q: What vendor invoice number should I use for the return?

A: Use the original vendor invoice number if it's still open, or a new invoice number if the vendor supplies one.

Q: What should the quantity and cost look like during PO Receiving for a return?

A: You should still be receiving a negative quantity with a positive cost, which results in a vendor invoice for a negative amount.

Q: How do I create the credit invoice for the customer?

A: Use the Assign Next button to get the next invoice number — your new (negative-quantity) order number should already populate the Order Number field. Work through it the same way, ending with a negative invoice total matching the return amount.

Q: Should I add anything special if sending the credit invoice to the customer?

A: Consider adding a message line stating this is a credit for their returned order (or the returned portion), so it's clear on the document.

Q: How do the new invoices get applied against the originals?

A: After updating receiving and invoicing, the new vendor and customer invoices appear and can be used to balance out the originals in A/P Check Processing and A/R Cash Receipts.

Tags: order-processing, returns, direct-ship, credit-customer, credit-vendor, DB-distributor