When a Loaner Shipment is completed, a no charge invoice document is created to track the shipment, but a sale is not recorded, and the inventory being shipped out remains the property of your company. As each Loaner Order Line is closed, the quantity being shipped for each line is deducted from inventory and a record is created for the item and quantity in the Pending file. The records in the Pending file store the customer, ShipTo, item, quantity, cost and price information from each Loaner Shipment and they are used to track and to value the items which have been shipped out of your warehouse at no charge.
Once the Pending records have been created, they can be processed using several dedicated programs (Loaner Management, RTV Management, IFT Management, Pending Management). These programs allow you to close out each pending record using several different options. Pending records can be closed by
Returning the Items to Inventory – This option is used when items shipped out to customers, sales reps or trade shows are returned to you and you wish to put them back into inventory.
Invoicing the Customer – The Invoice Customer Option is used when a customer wishes to buy a sample or evaluation unit that you shipped to them at no charge. The Selected Pending record or records are closed and an Invoice is created for the customer to record the sale.
Write Off – The Write Off option allows you to charge the value of the Pending Item to a general ledger account such as samples expense, warranty replacement, or something similar. This option is used to write off items that are no longer in sellable condition or to charge pending shipments off to other accounts. The Accounts that Pending items can be charged to is restricted based on a Table that can be set up by the System Administrator.
Invoice Vendor – The Invoice Vendor option is used to create an AP Invoice (negative) for items that were shipped back to vendors for repair or replacement using the Return to Vendor System. This option can only be accessed from the RTV Management program, and it can only be used for Pending records that were processed using the COVE-RTV customer account.