About return processing options

When goods must be returned to the supplier, you can create receipts of the Return type in the Purchase receipts (PO302000) window.

When you create a return, you can add a purchase order, add an order line, or specify the items with their quantities manually.
If you have added a purchase order or a line of the purchase order and specified the quantity to be returned to the supplier, you may need to select the Open purchase order line check box for the return line to keep the linked order line open until replacement for the returned items is received.
If you select the Open purchase order line check box for a return line, the quantity on receipts in the original order line (which is linked to the return line) will be decreased by the quantity in the appropriate return line.

You can add stock and non-stock items to returns.
For stock items, you must specify the warehouse from which the items will be issued to be sent back to the supplier.

For items with lot or serial numbers, you can click Allocations in the table toolbar of the Document details tab to specify these numbers for the returned units.

Also, notes and files can be attached to the document so you can give your supplier detailed information about why the items are being returned.

For each line in the return receipt, a reason code must be specified.
When the item is returned, on release of the purchase return, the item's extended cost is recorded to the expense account defined by the reason code specified for each return line.

The further processing of returns in Visma.net ERP involves integration with the Lager and Leverantörsreskontra workspaces.

Once the return document (a receipt of the Return type) is released, the system automatically generates an inventory issue that includes only stock items; non-stock items of the Non-stock type that were listed on the return, are not included in this inventory issue.

The inventory issues that are generated for returns are released immediately if the Release inventory documents automatically option is selected in the Purchase order preferences (PO101000) window; otherwise, you should release the issues manually in the Lager workspace.
Once inventory issues are released, the availability data for the items is updated:
The quantities of returned items are deducted from the item quantities available at the specified warehouse locations.

On release of such an inventory issue, the following general ledger entries are generated:

• Purchase expense account, purchase expense subaccount: Dr, ext. cost
• Inventory account, inventory subaccount: Cr, ext. cost

The extended cost for an issue of the Return type is calculated as for an regular issue: Unit cost used for the item on the inventory issue for return depends on the valuation method (for instance, for items with Average as the valuation method, it is the current unit cost calculated at the moment of release of the issue. The purchase expense account is associated with the reason code specified for return, while the inventory account is determined by the posting class of the item.

Once an item is issued from its warehouse location according to the inventory issue document, the item can be shipped or transferred to the supplier.

To make the system automatically generate an supplier ledger purchase credit note when a return (receipt of the Return type) is released, select the Create invoice check box in the top part of the Purchase receipts (PO302000) window for this return.
Alternatively, you will need to click Actions - Enter supplier ledger invoice for the return in the window toolbar to generate a purchase credit note.

The supplier ledger purchase credit notes are released immediately if the Release supplier ledger documents automatically option is selected in the Leverantörsreskontra (AP101000) window; otherwise, you should release these adjustments manually in the Leverantörsreskontra workspace.

On release of the purchase credit note, the following general ledger entries are generated:

• Supplier ledger account, supplier ledger subaccount: Dr, ext. cost
• Purchase expense account, purchase expense subaccount: Cr, ext. cost

The purchase expense account is associated with the reason code specified for return, while the supplier ledger account is associated with the supplier location.

Further processing of returns depends on the agreement between your company and the supplier.
The stages of processing the item at the supplier company are not reflected by the return's statuses.
You can complete the processing of the return in the Leverantörsreskontra workspace in one of the following ways:

• If the supplier usually refunds your company for returned items, you should enter the refund and apply it to the appropriate purchase credit note.
• If the supplier usually sends your company replacements for all returned items, create a purchase return and link it to the original order.If the Require approval of invoices prior to payment check box is selected in the Leverantörsreskontra (AP101000) window, make sure that the purchase credit notes are not approved for payment until the associated returns are received and approved by the supplier; otherwise, the adjustments might be applied to unrelated invoices.

You can view information about item movements by using the Inventory transaction summary (IN406000) window.
The items that were received and issued in the same period with no sales or transfer quantities specified are returns with cost information specified.
To get more specific information, use the Inventory transaction history (IN405000) window. In this window, you can select a particular stock item and view the reference numbers of purchase return documents.

Suppose that your company purchased five chairs (item ID CHR00124) with a unit price at €100.

The item with this item ID is assigned the Average valuation method.

On release of the inventory receipt, the item's extended cost was recorded to the purchase accrual account defined by the posting class of the item.

The following general ledger entries are generated:

• Inventory account, inventory subaccount: Dr, 500
• Purchase accrual account, purchase accrual subaccount: Cr, 500

The inventory account and purchase accrual account for each item are determined by the posting class of this item; the rule for the selection of the posting class is specified in the Bokföringsklasser (IN206000) window in the Use inventory/accrual account from and Use purchase accrual account from fields, respectively.

If the Subaccounts functionality is enabled in your system, the inventory subaccount used for the batch transaction is defined by the rule specified in the Combine inventory/accrual sub. from field on the same window, and the purchase accrual subaccount is defined by the rule in the Combine purchase accrual sub. from field.

On release of the supplier ledger invoice, the following general ledger entries are generated:

• Purchase accrual account, purchase accrual subaccount: Dr, 500
• Supplier ledger account, supplier ledger subaccount: Cr, 500

The supplier ledger account and supplier ledger subaccount are associated with the location of the supplier in the Leverantörsplatser (AP303010) window.

Later, an employee discovered that the chairs are of the wrong colour.

A purchase receipt of the Return type was created, and the original purchase order was added to this receipt.

On release of this purchase receipt, the system generates an inventory issue.

On release of the inventory issue, the following general ledger entries are generated:

• Purchase expense account, purchase expense subaccount: Dr, 512.50
• Inventory account, inventory subaccount: Cr, 512.50

The purchase expense account is determined by the reason code specified for the return line.
The default reason code for returns can be specified in the Purchase order return reason code in the Purchase order preferences (PO101000) window.

The extended cost on the inventory issue differs from the extended cost on the original receipt, because for inventory issues, the system uses the current average cost of the item, which is 102.50.

On release of the purchase credit note, the following general ledger entries are generated:

• Supplier ledger account, supplier ledger subaccount: Dr, 500
• Purchase expense account, purchase expense subaccount: Cr, 500

Thus, the purchase expense account (purchase expense subaccount) accrues any differences in costs as expenses, in this case, the amount of 12.50.