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Version 9 ar returns
- 1. Sales – A/R Returns and Exchanges SAP Business One, Version 9.0
- 2. Objectives At the end of this module, you will be able to: Describe how to handle issues that arise from deliveries Returns Redeliveries Exchanges © 2013 SAP AG. All rights reserved. 2
- 3. Business Example To increase customer satisfaction, the company has a liberal policy for returning items for replacement, exchange, or credit. When problems arise from the delivery, a Return document is used to give credit or to provide an option for redelivery from the original sales order. Sometimes the customer wants to return an item to exchange it for a different item. In those cases, the option for negative rows on a sales document can be used to return an item and exchange it for another. © 2013 SAP AG. All rights reserved. 3
- 4. Correction Documents Sales Order Delivery Return © 2013 SAP AG. All rights reserved. A/R Invoice A/R Credit Memo 4
- 5. Return Delivery Return © 2013 SAP AG. All rights reserved. 5
- 6. Return example We shipped the customer a quantity of 5 keyboards The delivery created a journal entry for decrease in inventory value and the cost of goods sold The customer asked to return the 5 keyboards Cost Account Stock Account 50 50 When the return is processed, a journal entry is created to record: A credit to the cost account for the full amount a debit to the sales returns Cost Account Sales Return 50 50 account © 2013 SAP AG. All rights reserved. 6
- 7. Effect of a Return Return Cost Account Sales Returns 50 50 Warehouse (Quantity) General Ledger (Value) © 2013 SAP AG. All rights reserved. 7
- 8. Redelivery A redelivery can be created for a sales order after items are returned. Option exists to reopen sales order. The open quantity of item is increased in sales order. © 2013 SAP AG. All rights reserved. The option to allow redelivery can be chosen by a user or set to occur automatically. Redelivery reduces the need for duplicate orders. Subsequent deliveries are easier and more transparent. Same functionality exists in purchasing. 8
- 9. Redelivery Example Initial Sales Process Sales Order: Status: Closed Open Qty: 0 Sales Order, Qty. 10 Delivery 1 Qty. 10 Return (Based on Delivery) Sales Order: Status: Open Open Qty: 3 Delivery 1 Return, Qty. 3 Subsequent Delivery of Open Quantity Sales Order: Status: Closed Open Qty: 0 Sales Order © 2013 SAP AG. All rights reserved. Delivery 2 Qty. 3 9
- 10. Prerequisites for Redelivery © 2013 SAP AG. All rights reserved. 10
- 11. Exchanges by negative rows Make corrections directly in a marketing document without a credit memo Negative rows can be added to: Delivery A/R Invoice Return A/R Credit Memo Example: customers can get a credit for sending back packaging while ordering more items. © 2013 SAP AG. All rights reserved. 11
- 12. Exchange example The customer orders 5 batteries The customer discovers the batteries are not the correct kind The customer wants to exchange batteries Create a delivery to ship out the correct batteries Add a negative row to return the incorrect batteries © 2013 SAP AG. All rights reserved. 12
- 13. Demo – Returns, Redeliveries and Exchanges © 2013 SAP AG. All rights reserved. 13
- 14. Summary Here are some key points: The Return document is used to process items returned from a customer after a delivery. It allows you to reverse the stock postings and any related accounting postings of a delivery either partially or fully. An option exists to reopen the related sales order for redelivery when posting returns. Configuration for this option is set in document settings for the sales order. Another option for correcting deliveries and managing exchanges is negative rows. The sales documents enabled for negative rows are: A/R Invoice, A/R credit memo, Delivery and Return. Several purchasing documents are also enabled for negative rows. © 2013 SAP AG. All rights reserved. 14
- 15. Thanks! You have completed the topic on returns and exchanges. Thank you for your time! © 2013 SAP AG. All rights reserved. 15
- 16. © 2013 SAP AG. All rights reserved. No part of this publication may be reproduced or transmitted in any form or for any purpose without the express permission of SAP AG. The information contained herein may be changed without prior notice. Some software products marketed by SAP AG and its distributors contain proprietary software components of other software vendors. Microsoft, Windows, Excel, Outlook, PowerPoint, Silverlight, and Visual Studio are registered trademarks of Microsoft Corporation. IBM, DB2, DB2 Universal Database, System i, System i5, System p, System p5, System x, System z, System z10, z10, z/VM, z/OS, OS/390, zEnterprise, PowerVM, Power Architecture, Power Systems, POWER7, POWER6+, POWER6, POWER, PowerHA, pureScale, PowerPC, BladeCenter, System Storage, Storwize, XIV, GPFS, HACMP, RETAIN, DB2 Connect, RACF, Redbooks, OS/2, AIX, Intelligent Miner, WebSphere, Tivoli, Informix, and Smarter Planet are trademarks or registered trademarks of IBM Corporation. Linux is the registered trademark of Linus Torvalds in the United States and other countries. Adobe, the Adobe logo, Acrobat, PostScript, and Reader are trademarks or registered trademarks of Adobe Systems Incorporated in the United States and other countries. Oracle and Java are registered trademarks of Oracle and its affiliates. UNIX, X/Open, OSF/1, and Motif are registered trademarks of the Open Group. Google App Engine, Google Apps, Google Checkout, Google Data API, Google Maps, Google Mobile Ads, Google Mobile Updater, Google Mobile, Google Store, Google Sync, Google Updater, Google Voice, Google Mail, Gmail, YouTube, Dalvik and Android are trademarks or registered trademarks of Google Inc. INTERMEC is a registered trademark of Intermec Technologies Corporation. Wi-Fi is a registered trademark of Wi-Fi Alliance. Bluetooth is a registered trademark of Bluetooth SIG Inc. Motorola is a registered trademark of Motorola Trademark Holdings LLC. Computop is a registered trademark of Computop Wirtschaftsinformatik GmbH. SAP, R/3, SAP NetWeaver, Duet, PartnerEdge, ByDesign, SAP BusinessObjects Explorer, StreamWork, SAP HANA, and other SAP products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of SAP AG in Germany and other countries. Business Objects and the Business Objects logo, BusinessObjects, Crystal Reports, Crystal Decisions, Web Intelligence, Xcelsius, and other Business Objects products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Business Objects Software Ltd. Business Objects is an SAP company. Citrix, ICA, Program Neighborhood, MetaFrame, WinFrame, VideoFrame, and MultiWin are trademarks or registered trademarks of Citrix Systems Inc. Sybase and Adaptive Server, iAnywhere, Sybase 365, SQL Anywhere, and other Sybase products and services mentioned herein as well as their respective logos are trademarks or registered trademarks of Sybase Inc. Sybase is an SAP company. HTML, XML, XHTML, and W3C are trademarks or registered trademarks of W3C®, World Wide Web Consortium, Massachusetts Institute of Technology. Crossgate, m@gic EDDY, B2B 360°, and B2B 360° Services are registered trademarks of Crossgate AG in Germany and other countries. Crossgate is an SAP company. Apple, App Store, iBooks, iPad, iPhone, iPhoto, iPod, iTunes, Multi-Touch, Objective-C, Retina, Safari, Siri, and Xcode are trademarks or registered trademarks of Apple Inc. All other product and service names mentioned are the trademarks of their respective companies. Data contained in this document serves informational purposes only. National product specifications may vary. IOS is a registered trademark of Cisco Systems Inc. RIM, BlackBerry, BBM, BlackBerry Curve, BlackBerry Bold, BlackBerry Pearl, BlackBerry Torch, BlackBerry Storm, BlackBerry Storm2, BlackBerry PlayBook, and BlackBerry App World are trademarks or registered trademarks of Research in Motion Limited. © 2013 SAP AG. All rights reserved. The information in this document is proprietary to SAP. No part of this document may be reproduced, copied, or transmitted in any form or for any purpose without the express prior written permission of SAP AG. 16
Editor's Notes
- Welcome to the topic on handling returns and exchanges in the sales process.
- In this topic, we will explore how to handle issues that arise from deliveries. We will process returned items, redeliver items, and see how we can use negative rows in a sales documents to handle partial credits and exchanges.
- To increase customer satisfaction, the company has a liberal policy for returning items for replacement, exchange, or credit.When problems arise from the delivery, a Return document is used to give credit or to provide an option for redelivery from the original sales order.Sometimes the customer wants to return an item to exchange it for a different item. In those cases, the option for negative rows on a sales document can be used to return an item and exchange it for another
- A redelivery can be created from a sales order after items are returned.An option exists to reopen the original sales order.The open quantity of an item is increased in sales order according the quantity in the return document.The option to allow redelivery can be chosen by a user or set to occur automatically.One advantage is that redelivery reduces the need for duplicate orders.Another advantage is that subsequent deliveries are easier and more transparent. You can view the connection between the documents in the relationship map. The same functionality in exists on the purchasing side for purchase orders and goods receipt POs. When you create a goods return, the purchase order can be reopened to receive replacement items on a goods receipt PO.
- Let us look at a business example for redelivery.The customer has ordered 10 laptops. The sales order was copied to a delivery for the 10 laptops. When the delivery was saved, the sales order was automatically closed. Since all 10 were delivered there is no open quantity on the sales order.There was problem with 3 of the laptops. The delivery was referenced to create a Return for a quantity of 3. The user chooses to reopen the sales order so that the quantity of 3 can be redelivered.A subsequent delivery is created from the original sales order. The open quantity of 3 is delivered, so the sales order is automatically closed and the open quantity on the sales order returns to 0.
- To offer users the option of redelivery, the setting must be made in advance.You can enable the functionality on the Document Settings window for sales orders. Choose the option to enable reopening of orders wile creating returns based on orders.An additional option is available to always allow the reopening of items in the original order. If this is chosen, then the sales order is always reopened. If left unchecked, a box will appear as the return is saved to ask if the user would like to reopen the items in the original order.
- Negative rows have been an option since release 8.8. Negative rows allow you to give credits directly on sales or purchasing documents. Using negative rows you can make corrections directly in a marketing document without a using a separate credit memo.The sales documents enabled for negative rows are: A/R Invoice, A/R credit memo, Delivery and Return.Negative rows can also be added to marketing documents in the procurement process. The purchasing documents enabled for negative rows are: A/P invoice, A/P credit memo, Goods Receipt PO and Goods Return.On most sales documents, like a delivery or A/R invoice, the negative row is a credit. However a negative row added to an A/R credit memo will actually be a debit line which charges the customer rather than credits the customer. That is because a positive total on a credit memo indicates a credit; therefore a negative amount on an A/R credit memo will indicate that the customer owes us.Another good example of a use for a negative row is to give a customer credit for sending back packaging while they are ordering more items.In most localizations, you can have a document with a negative amount. This can be useful in case the amount on the credit rows exceeds the amount on the debit rows in an A/R invoice.
- In our business example, our customer has ordered 5 batteries.The customer quickly realizes that the batteries are the wrong kind.The customer would like to exchange the incorrect batteries for the correct batteries.We can create a sales document, such as a delivery or an A/R invoice to ship out the correct batteries The same document can include a negative row (or credit row) to receive the returned batteries into stock and credit the customer.