Managing Returns of Items

This document explains what happens in the point of sale (POS) system and in M3 when a customer wants to return an item and be repaid either in cash or by a credit note.

Outcome

A return is entered in the point of sale system and a credit note or cash is given to the customer. Sales information is uploaded to M3 via a point of sale interface and the stock level is updated immediately. The general ledger and sales statistics are usually updated on a later occasion.

The following files are updated:

Before you start

Follow these steps

  1. The customer returns to shop with item

    The customer returns the item to the point of sale in the shop.

  2. Enter/Scan the returned item in the point of sale system

    Information about the returned item is entered in the point of sale system, including the original receipt number. A reason code that explains why the customer has returned the item can also be entered in order to store the information in the sales statistics.

  3. Identify the customer

    The customer is identified and checked to verify whether the returned item had any discounts or customer-specific prices at the time of the purchase. Customer-specific prices for an item are retrieved by using 'Price and Discount Inquiry Interface' (OIS320MI) and the 'GetPriceLine' (Get item price for an order line) transaction.

    This activity is optional and used only for known customers.

  4. Create returns receipt and credit note

    The return is entered together with other information, such as the credit note reference ID and the expiration date, in order to create a credit note and two returns receipts. The customer is repaid either in cash or by a credit note. A 1990 transaction is created.

    When repaid in cash, the receipt is as follows:

    Return Receipt No. 123456
           

    Item No.

    Quantity

    U/M

    Amount

    Item A 1- Pce –99.95
        Subtotal –99.95
        To receive 100.00
           
    VAT 25%   VAT –19.99

    When repaid with a credit note, the receipt is as follows:

    Return Receipt No. 123456
     

    Item No.

    Quantity

    U/M

    Amount

    Item A 1- Pce –99.95
        Subtotal –99.95
        To receive 100.00
        Credit note 100.00
        Credit note number 1002  
        Valid to 20031231  
    VAT 25%   VAT –19.99
  5. Upload sales information to M3 and update stock levels

    After the return is entered, it is uploaded to M3 through the point of sale application programming interface 'POS sales tickets interface' (OPS270MI). Two different transaction types are used:

    • Transaction type 1200=Returns of items
    • Transaction type 1990=Payments

    The credit note's reference ID and expiration date are added to transaction type 1990. A 1990 transaction is also created for a credit note or repaid cash. The credit note's ID number is updated in the Reference field in OPSALE. (See the table regarding credit notes below.)

    The stock level will be updated immediately and can be displayed in both 'Balance Identity. Open Toolbox (MWS060)' and 'Stock Transaction. Display History' (MWS070).

    When repaid in cash, the sales ticket input file OPSALE is updated as described in this table:

    Trans-action type Item No. Qty U/M Payment method VAT Amount
    1200 Item A –1 Pcs   –19.99 –79.96
    1990       Master Card (see note)   –100.00
    1990       Cash (see note)   –100.00
    1990       Rounding off (RND)   –0.05

    Note: There are two different ways to repay the customer in cash. You can repay in money (that is, coins and bank notes) or repay directly to the customer's bank account via the customer's credit card. Both are described in this table.

    When repaid with a credit note, the sales ticket input file OPSALE is updated as described in this table:

    Trans-action type Item No. Qty U/M Ref. Expiry date Payment method VAT Amount
    1200 Item A –1 Pcs       19.99 79.96
    1100       1002 20131231     100.00
    1990           Rounding off (RND)   –0.05
  6. Update general ledger and sales statistics

    The sales statistics (OSBSTD) and general ledger (FGLEDG) are updated in batch through 'POS Sales Ticket. Update' (OPS280). The 'Sales statistics interface' and 'Financial interface' parameters in (OPS280) must be selected before the batch is run. Note that you should also select the 'Inventory accounting interface' parameter. This means that the stock is updated by sales tickets that have been validated in 'POS Sales Ticket Toolbox' (OPS275) or 'POS Sales Ticket. Transfer' (OPS270).

    For the general ledger, the following accounting events and accounting types are created when repayment is made in cash:

    Accounting event Accounting type Amount Bank operation
    OP20 101 (Cash Payment) –100.00 45 (Cash)
    OP20 120 (Revenue) 00.05 46 (Rounding off)
    OP20 111 (VAT) 19.99  
    OP20 120 (Revenue) 79.96  

    Note that a bank operation is retrieved from the selected payment method.

    For the general ledger, the following accounting events and accounting types are created when repayment is made by credit note:

    Accounting event Accounting type Amount Ref. Expiry date Bank operation
    OP20 101 (Cash Payment) 100.00     45 (Cash)
    OP20 120 (Revenue) –100.00 1002 20131031  
    OP20 111 (VAT) 19.99      
    OP20 120 (Revenue) 79.96      

    The bank operation code is used to determine the account used in the general ledger. The reference ID and expiration date from the credit note can be used in the accounting string. When the customer uses the credit note as a payment method, the credit note's reference ID is balanced against the accounted liability, which is created in account 2420 when the customer returns the item.

    Accounting string:

    Accounting dimension 1 2420 (Account)
    Accounting dimension 2 1002 (Credit note number)
    Accounting dimension 3 20131231 (Expiration date)
    Amount 100.00
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