Return Reasons and Stock Write-off

Record return reasons and write off stock with the right postings and audit trail.

Return Reasons can be used to add clarity to stock movements. Used primarily on Sales Return Order lines, but also available on Sales Order lines and Item journals, return reasons also give you the ability to report on and control what happens to that stock on receipting, i.e. move to a quarantine location or write it off automatically.

Return Reasons should not be confused with Reason Codes. To find out more about Reason Codes, click here:

Sales and Purchasing: Reason Codes

Microsoft: Setting Up Source Codes and Reason Codes for Audit Trails

Prerequisites

Items have been created.

Sales processing set up.

Setup

Navigate to Return Reasons, here you can create multiple codes for all the reasons stock might be moved, i.e. input error, damaged in transit, unwanted by customer, mis-pick, sold for a particular event, goodwill. The codes can be used by themselves for reporting and specifically on Sales Return Orders to manage what happens to that stock on receipt.

Return Reason fields

Field	Note
Code	A unique reference for the return reason code.
Description	A description to help identify the code.
Default Location Code	Where this is set, when a return reason is added to a sales return order line, the Location Code on that line is changed. Stock will be moved to this location. This can be used, for example, where you have a quarantine location.
Inventory Value Zero	The returned stock is posted with zero value. This option should be used with care, as it results in stock being available to sell with zero cost. Also note that any Additional Charges against the original document are still posted. This option should be used on sales return order lines created manually. If you use it against lines created when running 'Get Posted Document Lines to Reverse' the cost adjustment routine will add the original cost to the item ledger entry created on the return. See below for an example scenario on when this option could be used.
Automatic Neg. Adjustment	Tick this option to have Bevica process Sales Return Orders normally on receipt, then post a negative adjustment for the entire line quantity, removing the stock from inventory. Note: you are unable to use a return reason code that has Automatic Neg. Adjustment ticked to return stock into a location that has Bin Mandatory set.
Sales Quantity (Base)	See Reporting at end.
Purchase Quantity (Base)	See Reporting at end.

Processing

You can add the Return Reason field to the following document lines:

• Sales Return Order
• Sales Order
• Purchase Return Order
• Purchase Order

Reporting

You can view and report on Return Reasons on the following document lines:

• Item Ledger Entry
• Value Entry
• Posted Sales Shipment
• Posted Sales Invoice
• Posted Purchase Receipt
• Posted Purchase Invoice

The Return Reasons page has two additional fields, Sales Quantity (Base) and Purchase Quantity (Base) that display quantities returned against each code. You can use Filter Totals To filter fields: Date Filter and Location Filter to further refine the values.

Return Reasons list showing Sales Quantity (Base) and Purchase Quantity (Base) totals