How to treat Returns Items from vendors

You have ordered 10 items from a vendor, but when you receive the goods, five of the items are damaged and must be returned. Create a credit note by copying the original sales invoice and reduce the quantity to 5 in the Create credit note form or Return the items by creating a new sales order and put in a negative quantity of 5 in the quantity field on the sales order line.

Inside the business logic

Influence scope of sales order and item returns

When we sale items, it will influence three modules: Inventory, the item’s on hand value will increase; Ledger, confirm this capital movement in finance; Vendor , record how many the vendor owen ours.

Item returns is an opposite operation of sales order, for example the goods delivered were the wrong size/color, the expiration date had passed, the delivered goods were damaged during transportation, it will reduce the item’s onhand quantity and worth, create an voucher in finance to reverse the voucher that created when sales it.

Negative Quantity

create a vendor return is to specify a negative quantity on the purchase order line in a new or existing purchase order.

Copy Original Purchase Invoice

The copy feature is a time saving feature as it prevents you from having to key in all the original purchase information from scratch.

Returned Item

create a purchase order using the order type ‘Returned Item.’ This is the only method that forces the user to enter a Return Merchandise Authorization Number (RMA number) and a Return action.

Actual operate

Propare

Create a item:

Use inventory movement journal to create item’s onhand value.
Post Packing Slip
Negative Quantity

Create a sales order , sales 30 items and post Packing slip.

Before post packing slip:

After post packing slip:

Voucher in Genenal Ledger:

Use Negative Quantity method to return six items:

Post packing slip :
100 physical value was reduce, and it’s the responses in Genenal Ledger:

Copy Original Purchase Invoice

Before post invoice, we can’t use Copy Original Purchase Invoice;
Returned Item

Create a purchase order using the order type ‘Returned Item.’:
Post Invoice
Negative Quantity

We post invoice:

After invoice, batch number 000020 is not exist in on hand form.

Use Negative Quantity to return invoiced item:

Then the items in batch number 000020 is available again:
Copy Original Purchase Invoice

Use Copy Original Purchase Invoice Methods is the same as Negative Quantity , just input operate is more simply.
Returned Item

The last method is Returned Item:

Before post invoice: