We have worked out the process to set up a Return Order for equipment coming back for Repair, Quarantine Order, and ship back to the customer. Our problem is when we receive the equipment the cost hits our Inventory account. If I use the “Credit Only” disposition in the Return Order, it automatically fills in the received date, and it can be received in Arrivals. If I put a $0 amount in the Return Cost Price I get an error message. The equipment is under warranty, it is owned by the customer so should not come into our inventory, and there is a $0 cost. How can we use AX to process this?
Hi Karen, thanks for the email yesterday, I wasn’t in a position to reply. I was going to suggest raising this here or on this community site, https://community.dynamics.com/default.aspx that way we all benefit
Your dilemma … I have some thoughts on this but not necessary the correct way to handle this, so please investigate these 1st. If they don’t work for you then I hope someone else can advise better.
[1] When the item / equipment is brought back to you for return / and or repair (and under warranty, albeit there will be cases where the warranty is invalid for numerous reasons). If you like using the returns order process and item arrival, then can I ‘suggest’ looking at this.:
Create a returns order, don’t add a disposition code here (NO transactions occur yet), start the arrival process (transactions start with a sales order created with a negative quantity, but with zero accounting entries so far). In the arrival journal, add a disposition code that returns the item / equipment back to the customer. Post the journal, this adds a second line to the returns sales order with a positive quantity for the same item / equipment. Once the returns sales order has been posted, the account transactions ‘should’ net themselves out, depending on timings and any other transactions.
[2] With disposition codes you can create these as required adding the correct action. It is also possible to assign ‘Charges’ > assign a ‘Charges code’, behind the charges code you could handle the accounting entries as a miscellaneous charge, reversing the debit / credit. This is also where you ‘could’ also deduct the return of the item to the customer by an amount or percentage, say ‘inspection fee’ fixed value or a percentage of the item value.
Not sure if the above is helpful, if not, I’m sure someone else will also have some valuable suggestions.
Take care
Return the goods into a return warehouse, the cost does not matter. Yes it hits inventory but all you need to do is create a journal at month end to reverse any value stock holding in the return warehouse. Value in inventory is also useful if you need, for insurance purpose, to account for the value of “held” stock no matter who owns it.
Thank you for your quick response, have been out sick, and will now investigate the options.
Thank you both for your time and responses. This has been an awkward transition from a 20 year old ERP system and it’s work-arounds.
We had already set up a Customer Warehouse for Returns. I have now reviewed the concept with our finance folks, of just checking that warehouse and doing a journal entry at the end of the month to reverse and value in the warehouse if needed, and they are now fine with that concept/process.