POS Procedures for Credit Returns

POS Procedures for Credit Returns

Please note: In addition to:
1. Billing lag times / Invoicing prior to shipment
2. Receiving lag times
3. Inaccurate counts
4. Supplier indecrepencies
5. Blown inter-store transfers
6. Theft
7. Human / clerical error
8. Items cut or converted to other sizes and not adjusted in the Eagle  (bluestone treads / angle irons)

One of the smaller contributing factors (number 9 on the list above) for inaccurate physical QOH counts stems from POS crediting options. Note the screen shots directly below:

When the Return Validation Window displays, the system requires one of the following 3 Codes

Always Use Option R / Return the Item

R = Refunds the customer's price & puts the item back into inventory / stock

Do Not Use Options D or E for Returns

D = Refunds the customer's price & does not add item back into stock
E = Refunds the customer's price & and removes that additional quantity from stock.     

Why Use Option R / Return the Item on Credits

It's quite simple:
1. If the item was damaged and can be credited from the supplier, the inventory gets relieved through a Credit PO

2. If the item can not be credited from the supplier, it must be taken out through the Physical Inventory process, so that the reason for the defective product can be denoted for year end accounting purposes:

 If you have damaged, broken or unsellable material contact Rachel or John to remove the quantity with one of the following reasons:

• B = Damaged in transit
• D = Damaged by employee/yardman
• E = Damaged from weather
• R = Reached expiration date
• X = Damaged by customer
  
  If you want to hold the item in stock to possibly sell it a discount in the future, leave it in inventory and it can be removed upon a cycle or year-end count.

Thanks