Order Entry Concepts

Understanding Returns

Returns are handled using either credit returns (pay code 5) or cash returns (pay code 6).

If the customer is exchanging a defective or unsatisfactory item, the transaction can be entered as a normal order. Returned items are placed on the order. If the value of the returned merchandise is greater than the value of the items the customer is purchasing, the transaction automatically becomes a cash exchange. This means that you owe the customer money at the end of the transaction.

If a return is posted correctly, all files affected by the original order are adjusted when the return is final-verified (printed as a status B invoice). The files that are affected include customer, salesperson, item history, accounts receivable, and the accounts receivable batch report.

When you receive returned merchandise, you should post and verify the return. You can also add items to a return pick ticket that has been ended and printed.