SAP Business One Software Makes Returns and Exchange Processes Simple and Easy
Many in distribution and retail now have liberal policies for item replacement, exchange, and/or credit. To increase customer satisfaction, it is important to be able to effectively handle the process of returned items and the redelivering of items. With SAP’s business management software for small and midsize businesses, SAP Business One (also known as SAP B1 and Business One), processing the return of an item is simple and easy. The software makes it easy for you to process negative rows in a sales document to handle partial credits and exchanges.
„ When problems arise from the delivery, a Return document is used to give credit to the customer or to provide an option for redelivery from the original sales order.
„ Sometimes the customer wants to return a product to exchange it for a different item. In those cases, the option for negative rows on a sales document can be used to return an item and exchange it for another.
Within the sales process, the two main correction documents in SAP Business One are the A/R credit memo and the Return document. The Return document is used to process items returned from customers following a delivery. The A/R credit memo is used to process returned items. Credit memos can also be made to give credit for amounts not connected to items. Rows with credit amounts can be entered directly on invoices and deliveries.
In most instances when an item is damaged or of poor quality, the customer will return the product. A Return allows you to reverse a the effects of a delivery. The system adds a reversed stock transaction to return the item back to inventory and references the delivery note.
When the return is processed, a journal entry is created to record:
- A credit to the cost account for the full amount
- A debit to the sales returns account
Return Document
The return document in SAP Business One increases the quantity in the warehouse by the quantity of the returned item.
The system also creates a journal entry that posts the value of the returned goods to the debit side of a sales returns account and to the credit side of the cost account.„ The value of the returned goods is not posted back to the original stock account in order to keep it separate from the value of the undamaged goods. The sales returns account and the cost account are retrieved from the Sales Returns field and the Cost Account field on the Inventory tab of the item master record.
Redelivery
Processing a redelivery in the system reduces the need for duplicate orders. An additional benefit is that subsequent deliveries are easier and more transparent. A redelivery can be created from a sales order after items are returned. An option exists to reopen the original sales order. The open quantity of an item is increased in the sales order according to the quantity in the return document. The option to allow redelivery can be chosen by a user or set to occur automatically. You can view the connection between the documents in the relationship map. The same functionality in exists on the purchasing side for purchase orders and goods receipt POs. When you create a goods return, the purchase order can be reopened to receive replacement items on a goods receipt PO.
Exchanges by Negative Rows
„Negative rows allow you to give credits directly on sales or purchasing documents. Using negative rows you can make corrections directly in a marketing document without a using a separate credit memo. The sales documents enabled for negative rows are: A/R Invoice, A/R credit memo, Delivery and Return. Negative rows can also be added to marketing documents in the procurement process. The purchasing documents enabled for negative rows are: A/P invoice, A/P credit memo, Goods Receipt PO and Goods Return. On most sales documents, like a delivery or A/R invoice, the negative row is a credit. However a negative row added to an A/R credit memo will actually be a debit line which charges the customer rather than credits the customer. That is because a positive total on a credit memo indicates a credit; therefore a negative amount on an A/R credit memo will indicate that the customer owes us. Another good example of a use for a negative row is to give a customer credit for sending back packaging while they are ordering more items. In most localizations, you can have a document with a negative amount. This can be useful in case the amount on the credit rows exceeds the amount on the debit rows in an A/R invoice.
Small and Midsize Enterprise Resource Planning (ERP) Business Management Software for The Manufacturing and Wholesale Distribution Industries
SAP Business One SAP’s best selling ERP system. It is the fastest selling ERP solution on the market for these reasons:
1. It is simple to use. Please see the SAP Business One iTour
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As a singular data system, right “out of the box” the software offers completely integrated:
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Want your growing small or medium business enterprise (SMB and SME) to run better? SAP Business One is designed to make workflow more efficient through out your entire enterprise. We can help you streamline warehouse inventory management with the use of mobile solutions, out-maneuver competitors, improve interactions with each customer, have better solutions for finding new customers, and transform your business with the latest in technology. Looking forward to helping you and your business get to the next level. For immediate answers to questions about SAP Business One sales, support, and services, Contact Cornerstone today!
SAP Small Business Enterprise Resource Planning (ERP) Systems | SAP Business One Software, Related Services and Tech Support
Why do so many growing Manufacturing, Online Retail and/or Wholesale Distribution businesses located in FL, as well as companies located through out the U.S., rely on Cornerstone for enterprise resource planning (ERP) business management systems, software services and technical support? As an award-winning Business Partner and Value Added Reseller as well as SAP Business One Gold Partner, our expertise is outstanding. Cornerstone Consulting has been providing state-of-the-art business software systems, as well as related technical support, to small and mid-sized manufacturing and wholesale distribution enterprises for more than thirty years. Looking forward to helping your business leverage SAP Business One software and cutting-edge technology.
