Returns for Replacement at the Same Price: Process Activity

The following activity demonstrates how to prepare and process to completion a customer return of items with the exact replacement of items (that is, with the same items for the same price), which does not require an invoice to be processed.

Attention: This activity is based on the U100 dataset. If you are using another dataset, or if any system settings have been changed in U100, these changes can affect the workflow of the activity and the results of the processing. To avoid any issues, restore the U100 dataset to its initial state.

Video Tutorial

This video shows you the common process but may contain less detail than the activity has. If you want to repeat the activity on your own or you are preparing to take the certification exam, we recommend that you follow the instructions in the activity steps.

FEEDBACK

Story

Suppose that you are Grace Norman, a sales manager in the SweetLife Fruits & Jams company. On January 30, 2023, the GoodFood One Restaurant customer asks for the replacement of five small jars of orange jam (ordered on January 25, 2023) with the same number of the same jam jars because the lids appeared to be dented. The returned jars must be temporarily placed to inventory so that the quality assurance would assess them to track the source of the damage. You authorize the return.

Acting as the sales manager, you need to process the return of items to inventory with shipping the exact replacement of the returned items to the customer.

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
  • On the Sales Orders Preferences (SO101000) form, the Automatically Release IN Documents check box has been selected.
  • On the Order Types (SO201000) form, the RR order type has been configured and activated.
  • On the Customers (AR303000) form, the GOODFOOD (GoodFood One Restaurant) customer has been defined.
  • On the Stock Items (IN202500) form, the ORJAM08 and APJAM08 stock items have been created.
  • The following sales documents, for which you will process a return, have been created:
    • On the Sales Orders (SO301000) form, the sales order for the GOODFOOD customer that includes the ORJAM08 and APJAM08 stock items and is dated 1/25/2023
    • On the Invoices (SO303000) form, the invoice for the GOODFOOD customer has been created in the amount of $201.74.
    • On the Shipments (SO302000) form, the shipment to the GOODFOOD customer that includes the ORJAM08 and APJAM08 stock items and is dated 1/25/2023

Process Overview

To process a customer return with an exact replacement, you will create an order of the RR (Return with Replacement) type on the Sales Orders (SO301000) form, and add to it the line or lines of the sales invoice that has been prepared for the sales order for which you need to process a return. You will receive the returned items to inventory by creating a shipment with the Receipt operation. Then you will process another shipment to record the delivery of the replacement items to the customer. Because the returned and replacement items have the same price, you will not need to process any accounts receivable documents.

Finally, you will update the inventory by using the Update IN command on the Process Shipments (SO503000) form; this action generates inventory documents that record the receiving and issuing of the items in this order.

System Preparation

Before you start preparing and processing the customer return for replacement at the same price, do the following:

  1. Launch the MYOB Advanced website, and sign in as a sales manager Grace Norman by using the norman username and the 123 password.
  2. In the info area, in the upper-right corner of the top pane of the MYOB Advanced screen, make sure that the business date in your system is set to 1/30/2023. If a different date is displayed, click the Business Date menu button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all documents in the system on this business date.

Step 1: Creating a Return Order of the RR Type

To create a return order of the RR type, do the following:

  1. On the Sales Orders (SO301000) form, add a new record.
  2. In the Summary area, specify the following settings:
    • Order Type: RR
    • Customer: GOODFOOD
    • Date: 1/30/2023
    • Requested On: 1/30/2023
    • Description: Authorized replacement of orange jam
  3. On the form toolbar, click Save.

You have created a sales order of the RR (Return with Replacement) type, but have not added lines to it. Now you can add to the return order the line of the sales invoice that had been prepared for the sales order for which you need to process a return.

Step 2: Adding the Items to Be Returned

To add the line of the sales invoice to return order for which you need to process a return, do the following:

  1. While you are still viewing the return order on the Sales Orders (SO301000) form, on the table toolbar of the Details tab, click Add Invoice.
  2. In the Add Invoice Details dialog box, which opens, do the following:
    1. In the Type box, select Invoice.
    2. In the Reference Nbr. box, select the reference number of the invoice to GOODFOOD in the amount of 201.74 dated 1/25/2023. The invoice lines appear in the table of the dialog box.
    3. In the table, select the unlabeled check box in the ORJAM08 line.
    4. Click Add & Close, which closes the dialog box and adds the line to the Details tab.
  3. Review the details of the added line, and make sure that the related invoice reference number is specified in the Invoice Nbr. column.
  4. In the line, change Quantity to 5, which is the number of jars to be replaced.
  5. Also, in the line, make sure that the Auto Create Issue check box is selected. With this check box selected, the line with the item for replacement will be created and added automatically to the return order on receipt confirmation.
  6. On the form toolbar, click Save. Notice that the return order has the Open status.

Step 3: Receiving the Returned Items

To process the receipt of items to inventory, do the following:

  1. While you are still viewing the return order on the Sales Orders (SO301000) form, on the form toolbar, click Create Receipt to create a receipt of returned items.
  2. In the Specify Shipment Parameters dialog box, which opens, make sure that 1/30/2023 is selected as the Shipment Date and WHOLESALE is specified in the Warehouse ID box.
  3. Click OK. Wait for the system to complete the operation. The system closes the dialog box and opens the prepared shipment with the Receipt operation on the Shipments (SO302000) form.
  4. On the form toolbar, click Confirm Shipment to confirm the receipt of the returned items.

Now you can process the shipping of the items replacement to the customer.

Step 4: Shipping the Replacement Items

To process the shipping of the items replacement to the customer, do the following:

  1. Open the RR order that you have prepared on the Sales Orders (SO301000) form and review it. On the Details tab, notice that the line with the replacement item has been added automatically when you confirmed the receipt of the returned items. The line has the same inventory item and unit price as the item that had been returned. Also, it has Issue in the Operation column, and a negative quantity in the Quantity column.
  2. On the form toolbar, click Create Shipment to create a shipment of the replacement item to the customer.
  3. In the Specify Shipment Parameters dialog box, which opens, make sure that 1/30/2023 is selected in the Shipment Date box and WHOLESALE is specified in the Warehouse ID box. Click OK. Wait for the system to complete the operation. The system opens the prepared shipment with the Issue operation on the Shipments (SO302000) form.
  4. On the Details tab, in the only line, specify Main in the Location column.
  5. On the form toolbar, click Confirm Shipment.

The replacement item has the same price and quantity, so no invoice to the customer is required. To record the movement of items and complete the process, you need to update the inventory.

Step 5: Updating Inventory

To update the inventory, do the following:

  1. Open the Process Shipments (SO503000) form.
  2. In the Action box, select Update IN.
  3. In the End Date box, specify 1/30/2023.
  4. In the table, select the unlabeled check boxes next to the lines with two confirmed shipments to the GOODFOOD customer that you have prepared earlier in this activity.
  5. On the form toolbar, click Process. The Processing dialog box opens. Wait for the system to complete the operation. Close the dialog box. The table no longer lists any lines with shipments. For the selected shipment lines, the system generates two inventory issues: an issue with the Return transaction type for the receipt, and an issue with the Issue transaction type for the shipment of the replacement item.
  6. Open the order of the RR type that you have prepared on the Sales Orders (SO301000) form and review the return order. The return order now has the Completed status, as you can see in the following screenshot. On the Shipments tab, make sure that the reference numbers of the issues generated for both the receipt and the shipment are shown in the Inventory Ref. Nbr. column (also shown in the following screenshot), which indicates that the corresponding inventory documents have been generated.
    Figure 1. Return order processed to completion


  7. Click the link in the Inventory Ref Nbr. column in the first line. On the Issues (IN302000) form, which opens in a pop-up window, make sure that the issue has the Released status. Close the issue.
  8. Click the link in the Inventory Ref Nbr. column in the second line. On the Issues form, which opens in a pop-up window, make sure that the issue has the Released status. Close the issue.

The customer return with replacement for the same price is now complete.

Activity Recap

In this activity, we have illustrated how the sales manager has done the following:

  1. Created a return order of the RR type and has added the items the customer is returning
  2. Created and confirmed a shipment with the Receipt operation type
  3. Created and confirmed a shipment of the replacement items to the customer
  4. Updated the inventory to reflect the movement of received and issued items