SA Table Code Value Setup - Return Adjust Reason field descriptions

The reason is a unique value that identifies this table value.

Specify a description for the Return Adjust Reason code.

Nonenterable field that displays the ID for the Return Adjust Reason code.

Specify the reason code when the stock item returned is going back to the vendor or cannot be returned to inventory because it is covered by a warranty, it was a special order, or the item is damaged.

Select this option to require an invoice number on Return Merchandise orders. Each return stores the original invoice number upon which the return is based. The billed price and cost are also included on the return to provide an audit trail of how and where returns originated.

This option is further controlled for individual operators using Authorization Security. The security level for the authorization point, reqinvfl, can be set in SA Authorization Security Administration for one or a group of operators. You can set their Security Level to Not Authorized, Authorized, or Grant Authority. For example, if a user's Security Level is Not Authorized, and a return reason requires an invoice number, but that information is not available, they are not permitted to enter the Return Merchandise order unless a supervisor with Grant Authority temporarily overrides the requirement.

Handling the return transaction is costly. Processing returns must either be recovered from the customer or vendor, or taken from profit. You can specify a return reason that includes a restocking charge to be subtracted from the customer’s credit. The restocking charge value can be a amount or percentage. The restock charge defaults in Sales Order Entry-Taxes and Totals when you enter the return order. You cannot override a restocking charge that is part of the return reason. If you use restocking charges, indicate the corresponding General Ledger account in SA Operator Setup or Product General Ledger Distribution Setup. If the restocking account is not defined, the suspense accounts set up in SA Company Setup-Required are used, and you must make manual adjustments to correctly distribute the charge.

Determines the disposition of the return. Valid return types are return to vendor, return to stock, unavailable, partial unavailable, and scrap.

• A vendor return type causes the unavailable balance for the item to increase. It displays on the Sales Warranty Returns Report as a reminder to enter it on a vendor return.
• A stock return type causes the item’s Product Warehouse Product Setup On Hand balance to increase during Sales Entry Invoice Processing Report.
• An unavailable return type increases the item’s Product Warehouse Product Setup unavailable balance, but the item is not displayed on the Sales Warranty Returns Report.
• A partial return type allows you to enter a quantity to be returned to stock and a quantity to be entered as unavailable.
• A scrap return type indicates that returns assigned to this return/reason code will not be brought back to on hand or unavailable inventory. You must specify the Scrap Account number to associate the GL account number for the scrap write off. This effects both stock and nonstock returns.

During Sales Entry Invoice Processing Report, if a scrap return type is found on a return line, then the item is written off and inventory is not updated. The write off is posted to the Scrap GL account.

Ensure a Return Adjust Reason is set up for tax corrections.

Product usage is the core element of all inventory ordering controls. This usage determines when to order and how much to order, which has a direct effect on your customer service and stocking levels. The handling of usage as it relates to returns is critical to all aspects of inventory management. If returns never affect usage, you will probably be overstocked in certain situations. If they always affect usage, your customer service level may suffer. To help keep usage correct, you can indicate if each return reason affects usage. This gives you the capability to alter return usage requirements. When entering a return in Sales Order Entry, the Usage option is selected, but you can override it. If the customer has returned the product, you want this return to affect usage.

Select this option if the return reason is a warranty exchange return reason. A warranty exchange is two transactions that occur simultaneously. The first transaction is for the return, and the second is for an exchange of the same item. Any return reason marked as a warranty exchange automatically generates both line items for the order. Cost and price are zeroed on each to allow the return to be invoiced without a false credit showing on the customer’s account and causing discrepancies in sales analysis. This functionality is designed to be used as an exchange, not a warranty service, which is why cost and price are zeroed out. Service Warranty is designed to specifically handle warranty servicing transactions.

Select this option if you require a warranty tag. The system does not validate the warranty tag, but you must specify a warranty tag during entry of the return before you can proceed.