Remanufactured core products

Remanufactured core products require special setups and considerations before you can include them on orders. For example, if a product is currently using the sales core charge on a standard product, you cannot change the product to a remanufactured core product.

A customer usually purchases a remanufactured core product to replace a similar item that no longer works. The customer may consider the used product as disposable once it is used. However, to encourage the customer to bring the used core product to your warehouse, a core charge is automatically added to the order when you enter a remanufactured core product on a line. This core charge is refunded when the customer returns the used core.

When the customer brings the used core to the warehouse, you enter it like a regular customer return. You match or allocate the used core being returned with the core charge from the original sales order to establish the amount of credit the customer receives.

To encourage your warehouse personnel to gather the used cores from customers, vendors sometimes add an implied core cost to the purchase of remanufactured core products, and then sell the raw materials to the remanufacturing industry.

When you enter a vendor return for the used core, you must allocate each used core to the implied core cost that the vendor added when you purchased the associated remanufactured core product. The vendor usually determines if the core is salvageable and refunds your core charge accordingly. The used core is dismantled, cleaned, refurbished, inspected, and then remanufactured to specifications before it re-enters the supply chain.