Direct Returns: Process Activity

In this activity, you will learn how to process a direct return of stock items through a point-of-sale (POS) terminal, and how to process a replacement of the returned items.

Story

Suppose that on January 30, 2024, an employee of the small retail customer FourStar Coffee & Sweets Shop came to the SweetLife store and asked for an exact replacement of a large jar of apple jam that is leaking. This jar is one of ten jars that were bought two days ago, on January 28, 2024.

Acting as the sales manager of the SweetLife company, you need to process the return of the jar and the sale of the new jar by using the POS terminal. The previous sale, dated January 28, 2024, was recorded through the sales invoice (created automatically through the integration of the POS system and MYOB Acumatica), which was paid in full and now has the Closed status. You need to replace the inventory item with the same item at the same price, so that no payment needs to be processed.

Configuration Overview

In the U100 dataset, for the purposes of this activity, the following tasks have been performed:

• On the Enable/Disable Features (CS100000) form, the following features have been enabled:
  • Inventory and Order Management, which provides the standard functionality of inventory and order management
  • Inventory, which gives you the ability to maintain stock items by using forms related to the inventory functionality and to create and process sales and purchase documents that include stock items
  • Advanced SO invoices, which provides support for direct sales and returns and integration with POS systems
• In the SweetLife store, the integration between the store’s POS system and MYOB Acumatica has been configured to work as follows:
  • When the sales manager processes a return through the POS system, the POS system creates an invoice of the Credit Memo type with the item or items being returned on the Invoices (SO303000) form.
  • If any lines of a direct return relate to an existing sales order, the POS operator selects the needed order directly via the terminal when processing a return.
    Note: In this activity, to simulate the POS functionality that occurs in a production system, you will add a return line with a link to the original sales invoice.
  • To process a replacement, the sales manager adds to this credit memo a line with the same inventory item or items and a quantity with the opposite sign.
  • When the sales manager releases the credit memo, MYOB Acumatica creates an inventory issue that includes two lines with different operation types: one line adds the returned item or items to inventory, and another line issues the replacement item or items from inventory.
• On the Customers (AR303000) form, the COFFEESHOP customer has been created.
• On the Stock Items (IN202500) form, the APJAM96 stock item has been created.
• On the Invoices (SO303000) form, the sales invoice for which you will process a return has been entered into the system.

Process Overview

In this activity, to handle a direct return, you will create a credit memo on the Invoices (SO303000) form. You will add the appropriate lines to the credit memo, some of which are linked to the original sales order and some of which are for replacement items and have a negative quantity. Then you will release the invoice to process both the receipt of returned items to inventory and the issue of replacement items from inventory.

System Preparation

Before you start replacing the inventory item with the same item at the same price, do the following:

1. Launch the MYOB Acumatica website with the U100 dataset preloaded, and sign in as sales manager Joseph Becher by using the becher username and the 123 password.
2. In the info area, in the upper-right corner of the top pane of the MYOB Acumatica screen, make sure that the business date in your system is set to 1/30/2024. If a different date is displayed, click the Business Date menu button, and select 1/30/2024 on the calendar. For simplicity, in this activity, you will create and process all documents in the system on this business date.

Step 1: Entering a Credit Memo

To enter a credit memo, do the following:

1. On the Invoices (SO303000) form, add a new record.
2. In the Summary area, specify the following settings:
   • Type: Credit Memo
   • Customer: COFFEESHOP
   • Date: 1/30/2024
   • Post Period: 01-2024
   • Description: Replacement of the leaking jar
3. On the form toolbar, click Remove Hold. Notice that the credit memo has the Balanced status.

Step 2: Adding the Return Line

To add a line with the item to be returned, do the following:

1. While you are still viewing the credit memo on the Invoices (SO303000) form, on the table toolbar of the Details tab, click Add Return Line.
2. In the Add Return Line dialog box, which opens, select the unlabeled check box in the line dated 1/28/2024 with the APJAM96 item, and click Add & Close. The system adds the return line to the credit memo and closes the dialog box.
3. In the line added to the credit memo, change the Quantity to 1 (because only one of the jars is being returned). In the Orig. Inv. Nbr. column in the line, notice that the system has inserted the reference number of the original invoice for which the return is being performed.
4. On the form toolbar, click Save.

Step 3: Adding the Replacement Line

To add the line with the replacement item the credit memo, do the following:

1. While you are still viewing the credit memo on the Invoices (SO303000) form, on the Details tab, add one more line (for the replacement item) with the following settings:
   • Inventory ID: APJAM96
   • Warehouse: RETAIL
   • Quantity: -1

     The quantity is negative because the item is to be issued from inventory.

   • Unit Price: 45.15 (the same as in the line with the item being returned)
2. On the form toolbar, click Save.

Step 4: Releasing the Credit Memo

To release the credit memo, do the following:

1. While you are still viewing the credit memo on the Invoices (SO303000) form, on the form toolbar, click Release.

   Notice that the status of the credit memo is now Closed. On release of the credit memo, the returned item has been received to inventory, and the replacement item has been issued from inventory. Because the price of the returned item was the same as the price of the replacement item, the credit memo balance is 0.00; thus, no payment needs to be processed.

2. On the Details tab, in either of the lines, click the link in the Inventory Ref. Nbr. column. On the Issues (IN302000) form, the system opens the inventory issue that was generated on release of the credit memo.
3. On this form, review the settings of the inventory issue, and make sure the inventory issue has the Released status, as shown in the following screenshot. Notice that the line with the returned item has the Credit Memo transaction type, while the line with the replacement item has the Invoice transaction type.