Direct Returns: General Information

A point-of-sale (POS) system is an electronic system that is used to record the sales, payment, and return transactions of a retail store. The POS system can be operated by a cashier or can be a self-service terminal where customers perform all operations. Your organization can integrate MYOB Advanced with an external POS system for simplified processing of direct returns if the Advanced SO Invoices feature is enabled on the Enable/Disable Features (CS100000) form.

With a direct return, a customer returns stock items directly to the retail store rather than shipping them. In the POS system, a direct return is processed through the creation of a credit memo—a sales-related document of the Credit Memo type created on the Invoices (SO303000) form.

Learning Objectives

In this chapter, you will do the following:

  • Create a credit memo (an invoice of the Credit Memo type) for a direct return
  • Add to the credit memo a return line with a link to an original sales document
  • Add to the credit memo a replacement line
  • Process the direct return to completion

Applicable Scenarios

You may need to create and process a direct return in the following cases:

  • A customer returns goods directly at the store. In this case, you process a credit memo in the system.
  • A customer returns goods directly at the store and requests the replacement of returned items. In this case, you process either a credit memo or a sales invoice, and the document includes both return lines and replacement (sales) lines.

Direct Return Process

You use the Invoices (SO303000) form to enter a credit memo (an invoice of the Credit Memo type), and you add a line for each returned or replaced item. To add a line (or multiple lines) with a link to related sales invoice, you click Add Return Line on the table toolbar of the Details tab. In the dialog box that opens, you select the invoice line or lines to be added as return lines to the document you are creating. In the added line, you can correct the quantity to be returned if partial return of the item quantity is requested (for example, if four units of the item were purchased and the customer is returning only two). For serialized items, you should add a separate line with this item and a quantity of 1 for each serial number.

To release the credit memo, you click Release on the More menu. This causes the system to automatically generate a batch of general ledger transactions, as well as an inventory issue for the stock items. For return lines, the system adds lines with the Credit Memo transaction type to the inventory issue. On release of the generated inventory issue, the items are received to inventory, and a batch of GL transactions is generated.

Also, when you release the credit memo, the related AR credit memo becomes available for review and further processing on the Invoices and Memos (AR301000) form.

Workflow of a Direct Return

For a credit memo created for processing a direct return, the typical processing involves the actions and generated documents shown in the following diagram.