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Return Inventory

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Inventory which has been sold is sometimes returned by the customer and you need to inspect it and either return it to the shelf for re-sale or send it back to the vendor for replacement or credit.  

Inventory being received on a purchase order which has been damaged in transit also needs to be returned back to the vendor. POSitive can handle this return inventory easily.

There are three types of returns

•    Customer Returns

- a customer wants to return a purchased item.  What you need to do is create an invoice to process the return and give the customer a refund.  Then you need to process the returned inventory item, putting it back in stock, or discarding it.

See Topics

  Accepting Customer Returns.

  Process Customer Returns.

•    Store Returns

- you have received an inventory item from your vendor and you want to send it back to the vendor for repair, replacement, or credit.  What you need to do is run RMA to vendors.

See Return Item Processing Form.

•    Warranty Returns.  

If you are a service center and do warranty work, you will be able to use POSitive to send items to the vendor or to a third party for repair or replacement.  

See Special Returns

 

Advance Setup

After you have decided on your store policy regarding customer returns you need to make some settings in POSitive to reflect those policies.

•Policy Statement - You can print your return policy at the bottom of each invoice.  This will help customers know up front what they need to do.  Go to Maintenance: Definitions: Policy Statements  (see Policy Statements)
 

•Return Definitions - When customers make a return, you will select a reason for the return.  The pre-defined reasons may be edited to more closely match your business needs.  One of these options can be set to Automatically Re-Stock the returned item. Go to Maintenance: Definitions: Customer Returns (see Reason For Return)
 

•Automatically Gather Customer Information
You may create a no charge inventory item which will prompt for critical customer information such as name and phone number and a signature line.  This information can be printed on the return invoice and can be searched for from invoice history.
 
Setup For Gathering Customer Information

The following 4 methods range from simple to sophisticated.  Choose the method which will best suit your needs.

Method 1 - while creating the return invoice, press CTRL-N.  You can type a note which contains any information you need such as phone number, name, address, etc.  Press F10 when finished typing the note.  Process the invoice normally.

Method 2 - create an inventory item, which does not track stock nor charge monies, but includes a Transaction Note (select Item Notes and enter text under Transaction Notes tab) as a reminder for the clerk to type customer information.  

Method 3 - create an inventory item, assigned to a special category which will launch Selling Prompts which require the clerk to respond to the questions.  Edit the Category (Maintenance: Category) and choose Selling Prompts.  Fill in as needed.  See Categories for more details.

Method 4 - create an inventory item which will trigger Advanced Printing to print a special form for the customer to fill out and sign which you will retain for your records.  Create a form which could be a variation of the invoice form.  Go to Station Settings: Printers/E-Mail: Invoices.  Choose the Advanced Printing tab and choose Add.  Fill in the details and the condition SKU = 'xxx' (whereas xxx is the SKU of the inventory item).  See Advanced Printing for more details.

 
Report on Gathered Customer Information

Depending upon the Method used for gathering information, (see above) you can use one or more of the following reporting options.

Option 1 - Go to Invoice History and click on the "Invoice Quick Find" (binocular icon) button.  In the Item Note field, enter a short phrase of what to search for.  TIP: if you consistently enter the same note, you will find multiple invoices.  (This works for Setup methods 1, 2, 3

Option 2 - Go to Invoice History and  click on the "Invoice Quick Find" (binocular icon) button.  In the SKU field enter the SKU of the specially created inventory item.  (This works for Setup methods 2, 3, and 4)

Option 3 - Go to Report Center: Sales Reports: Inventory and select "By One Item."  Enter the SKU of the specially created inventory item.  Choose "Print Notes Under Items" or "Print Notes In Place of Customer Info."   Set the Date Range and choose Print [F7].  (This works for Setup methods 2, 3, and 4)

 

•Require Customer Name For Returns - It is recommended, but not necessary, to require a customer name when accepting returns.  There are pros and cons for this setting.
 
hmtoggle_plus1        Commentary - Pros and Cons

Customer Name Required For Returns - If product is being returned this requires that you record the name and address of the customer making the return.

•If checked, you will have greater inventory control and will be able to provide the customer with more services.  For example, you will have the option of tendering the refund in cash, check, credit card, or store credit.  You will also have a fuller history for the customer and will be able to make better decisions about your services for the customer in the future.  (Optional) Create a "--Generic Customer--" in the Customer Center for situations when exact customer details are not available.

•PROS/CONS - This means a return invoice cannot be a Cash Sale invoice.  It MUST be created for a specific customer, by name.

•If unchecked, you can make returns on a Cash Sale invoice, but refunds will be by cash only, not by check nor store credit.  However, you may choose to change the Cash Sale invoice to a customer sale invoice and receive the benefits of requiring customer names on returns.

 

•Prepare a Restocking Fee Item.   If a Flat Fee is to be used, create an inventory item named RESTOCKING FEE.  The item should be Non-Tracking, and should have a Selling Price equal to your fee (15.00, for example), Cost 0.00, activate "Ask For Price" on the Options tab.  When it is added to the invoice you will be prompted to keep the fee at 15.00 or change it.
 
hmtoggle_plus1        How To Charge a Restocking Fee

(Optional) If your store policy is to charge a restocking fee for returned items, you may do it in one of two ways.

  Percentage Fee - Press Enter on the item being returned.  Choose either the CTRL-D Discount button or edit the line item and In the DSC% field, enter a percentage such as 15.00.  The extended price will be reduced by 15%.

  Flat Fee - Add the RESTOCKING FEE inventory item (which has been done as an Advance Setup.)  Edit the entry to add a Price proportionate to the value of the item being returned.

 

OVERVIEW of RMA Features

Not a Feature of PFR

hmtoggle_plus1Choose to manage Returns From Customers and distribute returned inventory items: To Stock, Discard, or To Vendor

Choose To Return To Stock

The stock count of the item will be automatically updated.  It will be notated in the Transaction Log and on the Stock Manager listing of stock sources.

Choose To Discard

The item will be erased.  There is a report which will print, for a specified date range, all items which were discarded.

Choose To Vendor

Typically, items to be returned to the vendor were previously sold items which your customers have returned to you.  After you have received the items from the customers, you choose Manage Returns From Customers on this RMA Center window.

 Highlight an item

 Choose Return To Vendor [F4]

 The item will be removed from the list.
hmtoggle_plus1Choose to return "unsold" item(s) to the vendor

If the item to be returned to the vendor has never been sold to a customer but you need to send it back to the vendor, then you choose Process Other Returns To Vendor.  For example, you may have inventory which was sent to you in error or which may be an overstock.  If your vendor agrees, you may process these items as part of an RMA for credit.

 Enter the SKU [F3]

 Fill in any missing information

 Enter a Reason for wanting to return the item
hmtoggle_plus1Select Send To Vendor and request an RMA number from the vendor

In either, case the items processed will be transferred to the Send To Vendor list.**  From here you fill in details about the items being returned.  Most importantly, you will indicate what the vendor is supposed to do with the item, i.e., repair/replace, credit your account, etc.  And you will record the return authorization number as given you by the vendor.

 Select the vendor and choose Process RMA

 Highlight each item in turn, and fill in a Return Action note.

 (For any items not being processed now, highlight and choose New RMA Number)

 Enter the RMA number.

 Choose Process RMA [F9]  Each item which has a checkmark will be posted out.

** Exception:  If the item being processed is not linked properly to a vendor, it will instead be sent to an "Orphans" list and you will need to first Process Orphans.
hmtoggle_plus1Check on status of items sent back to the vendor

Once the RMA items have been sent, you can check up on them with the Items In Transit List or the RMA Aging Report.

 Reports show when the item was sent out and a 30-60-90 aging status.
hmtoggle_plus1When the vendor sends you replacement items, you then process them under Receive Inventory (RMA)

 Highlight the RMA

 Choose Receive RMA

 Highlight the item being received

 Enter new invoice number and date

 Select Return To Inventory

 Choose Receive RMA [F9]
hmtoggle_plus1Finally, RMA History keeps a record of all RMAs processed and items received back from the vendor so you can review past transactions.

 Highlight the RMA

 Click on View button

 Edit details if necessary