Return to Inventory

The Return to Inventory Option allows you to return the selected items to one of your inventory or warehouse locations.  The Return to Inventory option allows you to handle situations where the vendor sends you replacement items for the items that you shipped to them, or where the vendor repairs the items sent back to them and return them to you.  Note:  The selected items can be returned to only one inventory location at a time.  You may process separate transactions or process partial quantities to move items to more than one location.

Return to Vendor Pending records can be returned to inventory by performing the following steps.

•      Select the records to be cleared.  You may select one record by highlighting the record in the RTV Management program, or by tagging a single record using the Tagging option.  You may also tag multiple records.

•      Set the To Clear Quantity in the records to be cleared.  The To Clear Quantity can be set by tagging the record (which will default the remaining open quantity into the To Clear field), or by using the Zoom option to activate the Pending Detail Panel – which allows you to set the To Clear value manually.

•      Accept or Change the Default Bin to be used for the items going back into stock.

•      Enter an optional receiving comment to record any notes about why the goods came back, their condition, etc.  These comments are recorded on the Receiving record for the transaction (which can be reviewed in the Receipts Management program), and they are printed by the print routine that comes up as each Return to Inventory is processed.

•      Note the Journal Entry assigned to the Receipt and press OK when the system indicates the transaction was saved successfully.

As the Return to Inventory transaction is saved, the system performs the following updates to the database.

•      Inventory On Hand and Bin Quantities are updated - The on hand quantity of the items which are being returned to stock are updated in the inventory location specified by the operator.  The system policy PENDBIN is used for the Bin ID for the items being put back into stock.  This Bin is updated if it already exists, or is created automatically if it does not exist. 

•      Serial Information is updated.  The Status of the Serial records for any serialized items being returned to inventory is updated to I (to indicate the serial number is in stock), and the location in the record is set to the location the item was returned to.  Serial History records are also written to record the fact that the serial numbers were returned to stock.  The

•      Cost information is recorded.  Each inventory item stores an average weighted cost and this cost is used to value each inventory item.  The Pending record being returned to stock also has its own cost.  The the net effect of the Return to Inventory transaction on the inventory sub ledger is based on the quantity of each item processed and the current average weighted cost for each inventory item in the location it is being returned to.  Any difference between the cost of the item in Pending and the Inventory Cost is automatically recognized and posted to the General Ledger.

•      Inventory Transaction History is written  - When a Return to Inventory transaction is processed using the RTV Management program, a record is created in the Inventory Transaction File for each item being returned to stock.  Each Inventory Transaction record is assigned a type of "RI" (Return to Inventory) and stores the item number and quantity of the item being returned to stock.  The current cost (at the time the return is made) of the inventory item in the location that the return is being made into is moved into the Previous and New Unit cost fields of the record.  The cost stored in the Pending record being processed is moved into the Cost field of the Inventory Transaction record.  The invoice number associated with the Pending record being processed is moved into the Invoice field of the Inventory Transaction record.  The Inventory Transaction records are used to track the movement of the inventory items out of the Pending file and into the inventory location they are returned to, and they are also used to record the disposition of each Pending record.

•      A Journal Entry is made for any gain or loss resulting from the item moving into Pending and back into Inventory.  As each Pending record is processed, the system checks the cost stored in the Pending record (this is the average cost of the item from the Inventory Master File at the time it was moved into the Pending file), versus the current cost of the inventory item in the location it is being returned to.  If there is a difference in the Pending cost and the Inventory cost, the system will create a journal entry which adjusts the inventory account and the RTV Gain or Loss accounts in the general ledger in order to keep the books in balance.  The Inventory account to be posted is determined by the product line that the inventory item is assigned to.  The journal entry is necessary because once the item is moved into the Pending file it is isolated from potential changes in average cost which flow through the Inventory Subledger.  If a Pending record is created and then the average cost of the item stored in the Inventory Master changes, moving the Pending record back into Inventory (incrementing the on hand quantity) without adjusting for the difference in the cost of the item in the two sub ledgers will cause and unbalanced condition between the inventory sub ledger and the inventory account in the general ledger.  The journal entry is created with a type of RI and it stores the Inventory Transaction number associated with the return in the Ref_No field of the journal entry and the original invoice number from which the pending record was created in the Memo field of the journal entry.

•      A Receipts record is created to record the receipt of goods back from the vendor.  The Receipt record can be viewed and re-printed from the Receipts Management program.

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