We've been using POA successfully for almost a year and are considering using it now for returns. I have entered a couple of returns so far and I see that it deducts the qty's and cost from inventory and sends a credit to AP. This part is working great.

However, my question is:

1. When receiving product, a receipt can be entered on a "Delivery note" and later when the invoice arrives from the vendor the amounts are enterred on an "Invoice" that POA then sends to Payables at Day End. Can returns be handled similarly in POA where the product is first taken out of inventory and physically sent back to the supplier. Then later when the credit arrives the amounts can be enterred at which time POA sends the credit to Payables?

When I attempted to test this, I did not get an option of "Delivery Note" and "Invoice". Instead it created an Adjustment and sent it immediately to Payables. Obviously it can take weeks, even months, to actually receive the credits from Vendors, so we don't want the credit sent payables at the stage that the item is just being sent back to the vendor. However, we do need the item to be deducted from inventory.

2. Also, what if the Vendor sends us product replacement instead of a credit? In this case nothing should be sent to Payables at all and instead the quantities returned to inventory and the return completed.

Is POA capable of doing these things? If so, please tell me how.

Thanks,

Hi, Susan,

If the returned item has already been invoiced, use a Quick Receipt with a negative quantity that reflects the number of items returned. On the Totals tab you'd specify the Delivery Note option for the Vendor Document Number. A quick receipt will reduce the Qty on Hand in IC but will not send anything to AP.

Once you receive the Credit Note from the vendor, highlight the Quick Receipt and create an Inv/Adj for it. You may find you want to adjust the amount to the amount the vendor has credited you if it differs from the amount you were originally invoiced.

To answer your last question, you could use the same principal. Do a negative Quick Receipt for the return and a positive Quick Receipt for the replacement item, both using the Delivery Note as the Vendor Document Number. Each would update IC but not send anything to AP.

You could do a combined invoice for the two Quick Receipts and the invoiced values for the return and the replacement items should cancel each other out.

Hi,

Thanks for the information. That sounds like it will work. My only question now is what is the purpose of "Returns" and "Quick Returns" in POA?

Sometimes programmers have an idea that seemed good at the time...

We have followed the advise here with entering quick receipts for returns to vendors. When the Credit Note arrives from the vendor, we create an INV/ADJ for the negative receipt to AP. This is working well except that in Payables the Invoice batch created is an INVOICE for NEGATIVE amount instead of a CREDIT NOTE. The accounting works out okay, but really, it should be a CREDIT NOTE, not an INVOICE. I assume this could be accomplished if Returns could be enterred in POA in 2 stages as I mentioned above. Delivery Notes first.. later.. Credit Note (rather than Invoice). Please let me know if there is any way around this in the meantime and if a newer version of POA will give us the ability to enter Returns in 2 stages with the 2nd stage posting a CREDIT NOTE to AP.

Hi, Susan,

This is just the way the program works. PO sends an 'Invoice'/Adjustment to AP for processing. You're right the net effect is the same.

I've entered your suggestion for a future release.