Customer Returns

This process is used to manage and follow up on goods that a customer has returned or will return.

Description

A customer return is one or more order lines returned by the customer due to issues such as incorrect delivery or defects. A customer can send an advisory of return in advance of the actual return. When this occurs, the customer return is registered before the items are delivered to the warehouse.

Customer returns are used for claims processing in the customer order flow.

Outcome

Returned goods are checked, put away, and credited after using this procedure. The results of the check are saved in a separate history file.

Before you start

The receiving warehouse allowing customer returns must be specified in 'Settings - Customer Returns' (OIS399).

Follow these steps

  1. Register customer return.

    A customer return is registered in 'Customer Return. Open' (OIS390). The customer return is automatically assigned a receiving number as an ID when it is registered.

    Customers normally give notice of returns before they are shipped back. This way, the customer return can be registered before the goods arrive. The original customer order or invoice can be referenced. This allows information such as price and quantity to be retrieved from the order lines or invoice lines as default values.

    See Register Customer Return for more details on how the proposed quantity is retrieved.

    See Managing Pick-up Deliveries for Customer Returns for more details on how transportation planning can be managed for the customer return.

  2. Confirm receipt of goods.

    When the goods arrive, the receipt must be confirmed for that receiving number. The on-hand balance and the stock transaction history for the received items are then updated.

    Goods receipts can be confirmed in two ways. Returns made without prior notice are automatically confirmed as the customer return is registered when the goods arrive. Goods returned after due notice are confirmed separately, because they are already registered. The method selected is determined by the 'Lowest status' setting in 'Settings - Customer Returns' (OIS399) at the warehouse for the return.

    Received goods are always put away at a location which cannot be automatically allocated. That is, the location has default status 1 (under inspection) in the inventory file. Goods receipt is specified in 'Customer Return. Open Lines' (OIS391).

  3. Register inspection results.

    After the return is confirmed, the items received must be inspected. The results of this inspection are registered for each goods receipt line and any action that must be taken is specified. Up to five of these actions can be specified:

    • Scrap
    • Repair
    • Redelivered to customer
    • Returned to supplier
    • Approved for allocation.

    Reclassification or transfer is done automatically, depending on the action.

  4. Create credit note or invoice correction.

    There are different ways to credit the customer. See Create Credit Note - Customer Returns.

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