Replacement of product without invoice

Finance and Operations/AX User Forum
1

Hi

I am working on one scenario where product can replace to customer without posting any financial transactions, I tried option return to customer but there is a limitation no edit option on item only replace same item, i am looking an option replace with different product (same value) but post only physical movement entry. please suggest any one have idea on this scenario.

Thanks…

DAC

2

You will not be able to do this because every item has a financial impact in theory, you lose the inventory value when it goes. You could add a negative line to return the original and a positive to move the new one, but ultimately you need to invoice them to close them and they will create financial transactions if they have costs - that is an unavoidable accountancy certainty - why do you want it to not create a financial impact?

3

Hi Adam,

Thanks for your response,let me give more details, we are not using inventory valuation due to some business policies and customer does not want invoice due to tax impact, since it is just exchange of stock for him due to quality issue , and we split item depends on few parameters (like color, size) but in commercial market it is same, so its not a different product them.

Thanks
DAC

4

The application of the negative line and positive line creates no invoice for the customer because it netts off against the returning item. However you will need policies and procedures for invoicing these as opposed to normal processing. There will also be cost implications and a process for removing returned stock. You could always send a replacement at zero proice but then you will have margin implications, but then you do anyway. Ultimately there will always be a financial impact, you dont have to give a customer the invoice if you close it off and the tax impact is zero at the end, but it is a sale and will appear within legally required reporting metrics.

5

Agreed, Thanks Adam,