Processing Customer Returns

In some situations, customers may return items to you for credit, or for credit and replacement. 

There are two different methods that can be used in StreamV to process items that are being returned to you by your customers. 

The Return Authorization System can be used to issue an RA for the items to be returned, to track the items while in transit, and to process a credit for the items when they are received back into inventory. 

The Credit Invoice option can also be used to handle items that are being received back into stock.

•      Return Authorization System – The RA or Return Authorization System allows you to create an RA document which identifies the customer who is returning the items, the items and quantities being returned and the original invoice associated with the return.  The RA document is used to track the items being returned, and it can be used to create a credit memo for the returned items once the items have been received back from the customer.  The RA System is optimized to handle returns or items that have been received by and are being returned to you by the customer.  The RA System is described in more detail in the documentation for the Return Authorization System.

•      Credit Invoice – If items are refused by the customer, or are returned to you by the shipper due to an invalid address or for other reasons, you may issue a credit for the items using the Credit Invoice option that is available from the AR Invoice Lookup program.   The credit invoice option makes sense when the items being returned were not actually received by the customer (i.e. items were refused, never received).  The option allows you to put the returned items back into stock and to issue a credit memo for the invoice used for the original shipment.

Processing Returns using the RA System

The basic steps to processing a merchandise return using the RA System are.

Issue the RA – In this step, the customer returning the items, the items and quantities being returned and the reason for the return are recorded by creating an RA or Return Autorization for the customer.  The RA Number is used to validate the return and the RA number is used to track the inbound shipment.

Issue a Call Tag (optional) – If you are paying for the shipping cost for the product return, you may issue the customer a call tag and add a note to the RA to indicate that the call tag has been issueed

Receive the RA – When the items being returned by the customer are received at your warehouse location, the warehouse “receives” the RA.  This step notifies the operators in the system that the items have been received back at your location.  The RA Receipt process does not update inventory for the items being returned and it does not create a credit memo document, it just indicates that the items have been physically received at your location and that the items are waiting to be disposed.

Dispose of the RA.  The RA Disposition process is used to return the items received back from the customer into normal or depreciated stock (in a normal or a returned goods location) and to issue the customer a credit for the items returned.

Processing returns using the Credit Invoice option

Identify the original invoice for the items being returned.

Find (highlight) the invoice in the AR Invoice Lookup progam and select the Credit Invoice Option.  This will load the information from the original invoice into the order invoicing program so that a credit memo can be created for the invoice.

Identify the quantities and items being returned, and enter the amount of any shipping credit to be issued to the customer. The Order Invoicing program allows you to partially or completely credit the original invoice.  Items and quantities can be edited and a shipping credit can be specified.

Save the Credit Memo – this will return the items from the credit memo into inventory and create an open negative invoice for the amount of the returned items plus the shipping amount and any applicable taxes.


Correcting AR Invoice Errors