Return to Depreciated Stock

The Return to Depreciated Stock option allows you to issue a credit to the RA customer for the item returned against the RA Line being processed, and to then return the item to inventory as a “depreciated” version of the item that was originally sold to the customer.  The Return to Depreciated Stock option can be used to handle goods that are damaged in transit to or from the customer, or items that are returned in damaged or open boxes (items that are no longer identical to the original item sent to the customer).  The Return to Depreciated Stock option allows you to automatically change the items being returned into open box, damaged box or other versions of the item during RA returns processing.  This streamlines returns operations and prevents damaged or other depreciated stock from being mixed together with the normal units for each item.

When the Depreciate Stock option is used, the system processes the credit memo to the customer using the original item from the RA, then the system actually transfers the quantity being processed from the “normal” version to the depreciated version of the item.  This approach ensures that sales statistics and cost of sales are recorded correctly for the customer credit.  The system then performs a Change Item transaction that is used to convert the item quantities and recognize the

The cost of the item being processed is not changed.   If the version of the item that you are transferring to does not already exist in the location you are processing, the system will create the new inventory item during processing.

The Return to Depreciated Stock option is available in the RA Line Disposition Detail Panel – which is accessed from the RA Disposition program.

A Return to Depreciated Stock transaction allows you to convert the items returned by the customer into another version of the item (like an open box, re-boxed, cosmetically damaged version of the normal SKU).  The Return to Depreciated Stock option uses a Generic Code Table to define and restrict the item types that can be converted to. 

The RA system automatically handles the write down of the item cost based on information in the Gencode Table, and it also automatically creates the new depreciated stock item in the warehouse being processed as required.  Any serialized inventory records for the item being depreciated are converted to the new item

If the item being depreciated is a serialized item (Serial Y or S), the serial numbers for the item must be specified during processing. This requirement is due to the fact that the system converts the serialized inventory records for each item when you depreciate it.

When the operator has selected the ralines and items to be “disposed of” and presses the Credit customer and return to stock button, the system does the following.

      Checks to see if the de-valued stock item number (the back to stock item) they wish to use exists in the returns location..  If not, the system creates the de-valued item. (this is possible if a standard numbering and write down percentage are used across all items).  If the de-valued stock item exists in the returns location – or another location in the division, the program gets current unit cost for the item (from the item or the other location record for the item).  If the de-valued item does not exist in the returns or another location, the system determines the cost by looking at the original item, it applies the cost percentage from the gencode table, and it creates the de-valued item in the catalog file and the inventory file as required.

      Converts the original to the back to stock item number (it writes an RA source transaction for the item conversion to file 91 and writes a journal entry.

      Transfers the serial numbers from the main item to the de-valued item.  As the item is converted to the de-valued stock item, the system updates the serial record for the item from the original to the de-valued item number and it writes a serial item number change record to the serial history file.

      Issues a credit memo to the customer for the value in the return field of each RA line,

      Creates a temporary sales order from the RA Lines being processed.

      Passes the order to the Invoicing Routine Automated or IRA.  This business process creates a credit memo to the customer for the items being disposed of, using the price and commission cost specified in the RA line, and the current cost of the item in the inventory system.  This process also closes the temporary sales order. The invoicing process also updates the Serialized Inventory records for the items returned to stock (they are are updated to I status), it writes Serial History transactions (type RA) to record the items being returned to stock, and it writes inventory transactions (type OI) to record the items moving into the inventory location.  The Inventory and Bin Qty for each item is also updated (the Bin used is based on F248:OCICMBIN)

      Updates the shipping and tax amounts in the customer credit memo to reflect the optional shipping credit entered by the operator.

      Posts the invoice to the GL (If you are posting online).

      Prints an RA Disposition ticket.

      Updates (closes) the RA lines that were processed.  The date and operator are moved to the disposed data and disposed by fields, the to clear quantity is moved to the disposed qty.  The credit memo number is moved to the raline credit memo number field, the to clear quantity is moved to the raline credit quantity field and C is moved into status.

      Prompts the operator to add a comment to the new credit memo.

      Checks to see if a custom exit routine has been specified for the RA routine.  If so, the routine is executed.  Exit routine is named RARTS

      The system displays a message “Disposition Complete” or Error Transaction Aborted to notify operator it completed  properly or not.

-   if creates dep in inv as reqd – ck item length.

-   -ck no deprec on deprec item – ck ext.

-   Return codes

-   Rds, crd, rtv, (rds invalid for nonstk – ck other)

-   - set restock, disp fees

-   No disp more than rec

-   No disp less than total received *(should be RAqty?) – ra disp currently lets you set up line you cant process – blocks with split message.

Only in stock lines, rec qty qty 0

Filters based on loc, workcell

Ck to clr gt 0

Disp type loaded

To clear = qty (must split for partial)..

-   all to same location

-   serials

prompts for shipping

creates so (create sales order from ra) mode credit

invoices,  updates based on shipping amt – updat shipping in invoice record

posts inv

(cks rds at that point, writes serial hist, updates serial,  if rds)

updates ra line

prompt for comment

In all of the above cases, the actual disposition or closing of the return authorization is accomplished by issuing a credit memo to the customer for the items returned by the customer. This action actually closes the return authorization and creates a credit memo in the accounts receivable system.  In the first case (return for credit), no replacement  sales order is created for the customer.  In the other two cases, a replacement sales order is also created for the items on the return authorization, using the pricing and other information from the ra.  When the replacement order is issued prior to the receipt of the goods from the customer, it is called a cross shipment.  When the replacement order is issued after the receipt of the goods from the customer, it is referred to as a replacement order.