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Dynamics NAV Sales Returns Overview

In this Article, we are going to discuss the Microsoft Dynamics NAV Sales Returns and its Creation in various fields.

 

If the customer wants to return items or be reimbursed for items or services that you have sold and received payment for, you must create and post a sales credit memo that specifies the requested change. To add the correct sales invoice information, you can create the sales credit memo directly from the posted sales invoice or you can create a new sales credit memo with copied invoice information.

If you need more control of a NAV Sales Returns process, such as warehouse documents for the item handling or better overview when receiving items from multiple sales documents with one sales return, then you can make sales return orders. A sales return order automatically problems the related sales credit memo and other return-related documents, such as a replacement sales order, if needed.

A return or reimbursement may relate to only some of items or services on the original sales invoice. In that case, you must edit data on the lines on the sales credit memo or sales return order. When you post a sales credit memo or sales return order, the sales documents that are affected by the change are reversed and a refund payment can be created for the customer.

In addition to the original posted sales invoice, you can apply the sales credit memo or the NAV Sales Returns order to other sales documents, for example, another posted sales invoice because a customer is also returning items delivered with that invoice.

You can send the posted sales credit memo to a customer to confirm the return or cancellation and communicate that the related value will be reimbursed, for example when the items are returned.

The credit memo posting will also revert the item charges that were assigned to the posted document so that the item’s value entries are the same as before the item charge was assigned.

Inventory Costing

To preserve correct inventory valuation, you want to put returned items back in inventory at the unit cost that they were sold at, not at their current unit cost. This is referred to as the exact cost reversing.

Two functions exist to assign the exact cost reversing automatically.

Function Description
Get Posted Document Lines to Reverse the function in the Sales Return Order window Copies lines of one or more posted documents to be reversed into the sales return order. For more data, see the “To create a sales return to order, and related sales credit memo, for on one or more a posted sales invoices” section.
Copy Document function in a Sales Credit Memo and Sales Return Order windows Copies both header and lines of one posted document to be reversed.

Requires that the Exact Cost Reversing Mandatory checkbox is chosen in the Sales & Receivables Setup window.

 

To assign exact cost reversing manually, you must select the Appl.-from Item Entry field on any type of return document line, and then select the number of the original sales entry. This links the sales credit memo or sales return order to the original sales entry and ensures that the item is valued at the original unit cost.

Create the Sales Credit Memo from a Posted Sales Invoice

  1. Enter Posted Sales Invoices, and then select the related link.
  2. In the Posted Sales Invoices window, choose the posted sales invoice that you want to reverse, and then choose the Create Corrective Credit Memo action. The sales credit memo header contains some data from the posted sales invoice. You can edit this, for example, with new data that reflects the return agreement.
  3. Edit data on the lines according to the agreement, such as the number of returned items or the amount to reimburse.
  4. Choose the Apply Entries action.
  5. In the Apply Customer Entries window, select the line with the posted sales document that you want to apply the sales credit memo to, and then select the Applies-to ID action. The identifier of a sales credit memo displays in the Applies-to ID field.
  6. In the Amount to Apply field, enter the amount that you want to apply if it’s smaller than the original amount. At the bottom of the Apply Customer Entries window, you can see the total amount to apply to reverse all included entries, namely when the value in the Balance field is zero.
  7. Choose the OK button. When you post a sales credit memo, it is applied to the posted sales documents. After you create or edit the sales credit memo lines, and the single or multiple applications are specified, you can post the sales credit memo.
  8. Choose the Post and Send action.

The Post and Send Confirmation dialog box opens showing the preferred sending method for a customer. You can change the sending method by choosing the lookup button for the Send Document to the field.

The posted sales documents that you applied the credit memo to are now reversed, and a refund payment can be created for a customer. The sales credit memo is removed and replaced with the new document in the list of posted sales credit memos.

Sales Credit Memo by Copying the Posted Sales Invoice

 

  1. Enter the Sales Credit Memos, and then choose the related link.
  2. Select the New action to open a new empty sales credit memo.
  3. In the Customer field, enter the name of the existing customer.
  4. Choose the Copy Document action.
  5. In the Copy Sales Document window, in the Document Type field, choose Posted Invoice.
  6. Choose the Document No. field to open the Posted Sales Invoices window, and then choose the posted sales invoice that contains lines that you want to reverse.
  7. Select the Recalculate Lines check box if you want the copied posted sales invoice lines to be updated with any changes in the item price and unit cost since the invoice was posted.
  8. Choose the OK button. The copied invoice lines are inserted in a sales credit memo.
  9. Complete a sales credit memo as explained in the “To create a sales credit memo from a posted sales invoice” section in this topic.

To Create the NAV Sales Returns Order Based on One or More a Posted sales Documents

  1. Enter the Sales Return Orders, and then choose ect the related link.
  2. Choose the New action.
  3. Fill the fields on the General FastTab as necessary.
  4. On the Lines FastTab, fill the lines manually, or copy data from other documents to fill the lines automatically:
    • Use Get Posted Document Lines to Reverse function to copy one or more posted document lines from one or more posted documents. This function always exactly reverses the costs from the posted document line. This function is described in the following steps.
    • UseCopy Document function to copy an existing document to the return order. Use this function to copy the entire document. It can be either a posted document or the document that is not yet posted. This function only enables exact cost reversing when the Exact Cost Reversing Mandatory checkbox is chosen in the Sales and Receivables Setup window.
  5. Select the Get Posted Document Lines to Reverse action.
  6. At the top of the Posted Sales Document Lines window, choose the Show Reversible Lines Only check box if you want to see only lines that have quantities that have not yet been returned. For example, if the posted sales invoice quantity has already been returned, you may not want to return that quantity on a new NAV Sales Returns document. At the left side of the window, different document types are listed, and the number in brackets shows the number of documents available of each document type.
  7. In the Document Type Filter field, select the type of post document lines you would like to use.
  8. Choose the lines that you would like to copy to the new document.
  9. Select the OK button to copy the lines to the new document. The following processes occur:
    • For posted document lines of the type Item, a new document line is created that is a copy of the posted document line, with the quantity that has not yet been reversed. The Appl.-from the Item Entry field is filled in as appropriate with the number of the item ledger entry of the posted document line.
    • For posted document lines that are not of the type Item, such as item charges, a new document line is created that is a copy of the originally posted document line.
    • Calculates the Unit Cost (LCY) field on a new line from the costs on the corresponding item ledger entries.
    • If the copied document is posted shipment, posted receipt, posted return receipt, or posted return shipment, the unit price is calculated automatically from the item card.
    • If the copied document is posted invoice or credit memo, the unit price, invoice discounts, and line discounts from the posted document line are copied.
    • If the posted document line contains item tracking lines, the Appl.-from the Item Entry field on the item tracking lines is filled with the appropriate item ledger entry numbers from the posted item tracking lines. When you copy from the posted invoice or posted credit memo, the program copies any relevant invoice discounts and line discounts as valid at the time of posting that document from a posted document line to the new document line. Be aware, however, that if the Calc. Inv. The discount option is activated in the Sales & Receivables Setup window, then the invoice discount will be newly calculated when you post the new document line. The line amount for the new line may, therefore, be different than the line amount for a posted document line, depending on the new calculation of the invoice discount.
  10. In the Sales Return Order window, in the Return Reason Code field on each line, choose the reason for the return.
  11. Choose the post action.

To Create the Replacement Sales Order from a Sales Return Order

You may have decided to compensate a customer for an item that you have sold them by replacing the item. You can make the replacement with the same item or a different item. This situation could occur if you mistakenly shipped the wrong item to a customer, for example.

  1. In a Sales Return Order window for an active return process, on an empty line, make a negative entry for the replacement item by inserting a negative amount in the Quantity field.
  2. Choose the Move Negative Lines action.
  3. In Move Negative Sales Lines window, fill in the fields as necessary.
  4. Choose the OK button. The negative line for the replacement item is deleted from a sales return order and inserted in a new Sales Order window.

You can have the replacement sales orders, purchase return orders, and replacement purchase orders created automatically during the NAV Sales Returns process. This is helpful, for example, in situations where you want to handle items with warranties provided by vendors.

  1. In the Sales Return Order window for the active return process, choose the Create Return-Related Documents action.
  2. In the Vendor No. field, enter the number of vendors if you want to create vendor documents automatically.
  3. If a returned item must be returned to the vendor, choose the Create Purch. Ret. Order checkbox.
  4. If a returned item must be ordered from the vendor, select the Create Purchase Order checkbox.
  5. If a replacement sales order must be created, select the Create Sales Order checkbox.

To Create a Restock Charge

You may decide to charge your customer the restock fee to cover the physical handling costs of returning an item. This could occur if a customer mistakenly ordered the wrong item or changed their mind after receiving the item you sold them, for example.

You can post this increased cost as the item charge in a credit memo or a return order and assign it to the posted shipment. The following describes it for the sales return order, but the same steps apply to a sales credit memo.

  1. Open the Sales Return Order window for the active return process.
  2. On a new line, in the Type field, choose Charge (Item).
  3. Fill the fields as for any item charge line.

When you post the sales return order, the restocking charge is added to the relevant sales entry amount. In this way, you can maintain an accurate inventory valuation.

To Create a Sales Allowance

You can send the customer a credit memo with a price reduction if the customer has received slightly damaged items or received the items late.
You can post this reduced price as the item charge in a credit memo or a return order and assign it to the posted shipment. The following describes it for the sales credit memo, but the same steps apply to a sales return order.

  1. Enter the Sales Credit Memos, and then choose the related link.
  2. Select the New action to open a new empty sales credit memo.
  3. Fill the credit memo header with relevant information about the customer that you want to give the sales allowance to.
  4. On the Lines FastTab, in the Type field, choose Charge (Item).
  5. In the No. field, select the appropriate item charge value.
    You may want to create a special item charge number to cover the sales allowances.
  6. In the Quantity field, enter 1.
  7. In the Unit Price field, enter the amount of a sales allowance.
  8. Assign a sales allowance as an item charge to the items in the posted shipment. 

When you post a sales return order, the sales allowance is added to the relevant sales entry amount. In this way, you can maintain an accurate inventory valuation.

To Combine Return Receipts

You can combine the return receipts if your customer returns several items that are covered by different sales return orders.

When you receive an item into your warehouse, post the relevant sales return orders as received. This creates posted return receipts.

When you are ready to invoice the customer, instead of invoicing each NAV Sales Returns order separately, you can create a sales credit memo and automatically copy the posted return receipt lines to this document. Then you can post a sales credit memo and conveniently invoice all the open sales return orders at once.

To combine return receipts, Combine Shipments check box must be selected in the Customer Card window.

To Manually Combine Return Receipts

  1. Enter the Sales Credit Memo, and then choose the related link.
  2. Choose the New action.
  3. On General FastTab, fill the fields as necessary.
  4. Choose the Get Return Receipt Lines action.
  5. Select the return receipt lines that you want to add in the credit memo:
    • To insert all lines, choose all lines, and then choose the OK button.
    • To insert specific lines, choose the lines, and then choose the OK button.
  6. If an incorrect shipment line was selected or you want to start over, you can simply delete the lines on the credit memo and re-run the Get Return Receipt Lines function.
  7. Post the invoice.

To Automatically Combine Return Receipts

You can automatically combine the return receipts and have the option of automatically posting the credit memos using the Combine Return Receipts function.

  1. Enter Combine Return Receipts, and then select the related link.
  2. In the Combine Return Receipts window, fill the fields to select the relevant return receipts.
  3. Select the Post Credit Memos check box. If not, you must manually post a resulting purchase credit memo.
  4. Choose the OK button.

To Remove a Received and Invoiced Return Order

When you invoice return receipts in this way, return orders from which the return receipts were posted still exist, even if they have been fully received and invoiced.

When return receipts are combined on the credit memo and posted, a posted sales credit memo is created for the credited lines. The Quantity Invoiced field on an originating sales return order is updated based on the invoiced quantity.

  1. Enter Delete Invoiced Sales Return Orders, and then choose the link.
  2. Specify in the No. filter field which returns orders to delete.
  3. Choose the OK button.

Alternatively, delete individual NAV Sales Returns orders manually.

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