This section provides an overview of how StreamV can be used to return inventory items to your vendors for credit or replacement.
There are two different approaches that can be used to record merchandise returns to your vendors in StreamV.
• Manual: The first approach uses the Inventory Quantity Adjustment program and the Accounts Payable Invoice Entry program. The inventory quantity adjustment program is used to charge or to “write off” the items being returned to the vendor - normally to a vendor returns clearing account. The AP Entry program is then used to create a negative invoice for the vendor. The AP invoice is posted to the same vendor returns clearing account used for the inventory adjustment, and it is also used to record any difference between the inventory cost of the item and the amount of the credit received from the vendor.
This manual approach is fairly simple, but it does not provide for an automated way to ship the goods back to the vendor, and it does not allow you to track and report on the open and closed RTV transactions. There is no real link between the inventory adjustment and the AP transaction, and it is not easy to determine the gains or losses resulting from each return, or for a specific vendor.
• Automated: The second option that can be used to process vendor returns in StreamV is the Return to Vendor or “RTV” System. The Return to Vendor System is a collection of programs which are used to return defective or excess goods to vendors for credit, repair, or replacement. Many of the programs used by the RTV system, such as the Sales Order Entry program, and the Order Invoicing program, are standard programs that are used by other systems in the StreamV application. Some Return to Vendor programs, such as the RTV Management program are used exclusively for RTV processing. The RTV System allows you to enter, process and track vendor returns in an efficient and accurate fashion, and it makes use of existing programs and processes to allow vendor returns to be handled with a minimum of work and disruption.
Return to Vendor Process
This section briefly describes the steps that are completed in order to process a merchandise return to one of your vendors. The steps listed in this section are described in more detail in later sections of this document.
Processing a Return to Vendor using the RTV System involves the following steps.
• Identify the items to be Returned: Items may be returned to the vendor for credit and/or replacement. The system allows you to process all stocking warehouse items. The items to be returned to the vendor are generally identified using Inventory Valuation and or Inventory Aging reports, or by checking stock levels by vendor. Items to be returned may also be transferred to a quarantine location – so they can be isolated from “normal” stock.
• Enter the RTV Order: A Vendor Return is initiated by entering a "loaner" type sales order using the Sales Order Entry program. The Order Entry program is used by the RTV system because it allows the system to take advantage of features which are available in the order entry, processing and order completion programs such as inventory allocation, on-demand picklist printing, integrated UPS and FEDEX shipping, etc. This approach reduces the need to duplicate processes which already exist, and it allows RTV shipments to be seamlessly integrated into the order processing flow.
• Process the RTV Order. Once the RTV Order is entered, it may be put on hold (depending on how the RTV customer is configured). The RTV Order is also allocated to by the system. Once the order is allocated to and any holds for the order have been released, the order is printed using the Picklist Management program.
• Complete the RTV Order. Once the Picklist for the order has been produced, the warehouse operators pick the appropriate items and prepare the shipment to the vendor. The Order Completion program is then used to identify or confirm the items and quantities being shipped out. When the RTV order is competed, the system creates a no charge “Loaner” or “Shipper” invoice document. This document is not treated as a sale, it is just used to record the shipment of the items to the vendor (the items are still owned by your company at this point).
• Track the Open Returns. As the RTV order is completed, the system creates records for the items shipped out in the Pending file. The open records in the Pending file represent inventory that you own, that is not present in one of your warehouse locations. The Pending records for Vendor Returns are assigned a document type of V, and they can be viewed and processed using the RTV Management program (which is normally located on the AP Operations Menu). The Aged Pending inventory report (Warehouse Reports Menu), can also be used to output a report of all open Pending items.
• Close out the Returns. Once the vendor has issued a credit for the returned merchandise, or they have replaced the items, the RTV Management program can be used to create the negative invoice for the vendor, or return the items to one of your warehouse locations. You may also write the open items for the vendor off (to handle situations where the vendor does not replace or credit you for the items you sent to them).