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Openbravo QuickStart 2User Manual

Chapter 06 – Customer Returnto Replacement

v2.0.1

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Introduction ....................................................................................... 1Abstract Business Process .................................................................. 2Roles Involved .................................................................................... 3Configuration ...................................................................................... 3

Storage Bins ...................................................................................... 3Step-by-Step....................................................................................... 4

Create Return Merchandise Authorization (RMA) ..................................... 4Return Sales Order .......................................................................... 4Replacement Sales Order.................................................................. 5

Receive Returned Product .................................................................... 6Inspect ............................................................................................. 8

Store ............................................................................................. 8Refurbish........................................................................................ 8Dispose .......................................................................................... 9

Send Replacement.............................................................................. 9Create Sales Invoice ........................................................................... 9

Crediting the Customer....................................................................10Invoicing Replacement Items ...........................................................10Settling the Two Payments................................................................ 0

Accounting........................................................................................ 10Configuration ....................................................................................10Posting of the Sales Invoice ................................................................11

Allow Negative = Y .........................................................................11Allow Negative = N .........................................................................11

Introduction

This workflow manages the return of goods from a customer that requires replacement forthe goods:

• Authorization of returning a product

• Receive and handle the returned product• Send the replacement• Issue additional invoice if required

Abstract Business Process

The abstract process customer return to replacement process is outlined by the followingdiagram:

The following sub-processes form it:• Return Merchandise Authorization (RMA) - authorize the return of a product• Receive Returned Product - receive the product into the warehouse• Inspection and depending on the outcome:

◦ Store the product◦ Dispose the product◦ Refurbish (Repair) the product

• Send Replacement

• Create and Send a Sales Invoice

Roles Involved

The following roles are involved with this process:• Finance - this role authorizes returns• Material Management - receive the product and handle it appropriately within the

warehouse

Configuration

Before this process can be used, the following elements need to be configured first:• Specific Storage Bins that can hold:

◦ Recently received items◦ Items waiting for refurbishing◦ Items to be thrown away (disposed)

Storage Bins

Please see Wall to Wall Accuracy Count chapter for more information on how to setupwarehouses and storage bins. Normally three separate bins should be configured for storingreturned items:

1. a bin for recently returned items waiting for inspection2. a bin for items pending to be refurbished3. a bin for items pending to be disposed of

Here is an example of a configuration:

Step-by-Step

Create Return Merchandise Authorization (RMA)

The Finance role should be used.

When a customer requests a product to be returned, the finance department must recordand authorize this request. Since a return shipment will also be required, there are twosteps necessary to record the authorization of this transaction:

1. A standard Sales Order must be created, indicating that items are expected to bereturned from the customer (hence, negative amounts must be used in the [Lines]tab)

2. Another standard Sales Order should be created, ordering shipment of replacementitems to be sent.

Return Sales Order

Using the Sales Management || Transactions || Sales Order window create a newheader with the Business Partner that is returning the items:

Fields to note:• Description - enter a reason for the return of this particular merchandise• Transaction Document - a Standard Order should be used for RMA documents.

Note: Do not use the Returned Material transaction document.• Business Partner - the customer that is returning the item• Invoice Terms - After Delivery should be used which means the customer will get

credited for returned items once the goods are received back into the warehouse• Warehouse - select the correct warehouse which contains the bin where returned

items are stored• Sales Representative - the person who authorized a return

Then, move to the [Lines] and enter the products that are being returned. Create a line foreach product that is returned, entering the quantity in negative:

Fields to note:• Product - select the product that is being returned• Attribute Set Value - enter or select an attribute in case the product supports

them as an additional description• Ordered Quantity - enter the quantity being returned in negative• Net Unit Price - make sure the price here is the one that will be used to credit

back the customer

Complete the document back in the [Header].

Replacement Sales Order

Now, create another sales order to the same Business Partner, this time creating lines withitems that need to be sent back as a replacement for the returned ones (with positivequantities). In order to indicate that this sales order is a replacement order do thefollowing:

• use the Order Reference field to enter the number of the previously created orderrecording the items to be returned

• use the Description field to describe the situation and authorize this order.• Invoice Terms - if the value of replacement items is equal to returned one and no

invoice is required, then select Do not invoice, otherwise select appropriate invoicingterm.

For example:

Enter replacement items in the [Lines] tab.

Note: Items sent back as replacement do not have to match the original items that werereturned. Any potential difference will later be settled by an additional invoice and asettlement.

Receive Returned Product

The Material Management role should be used.

Once goods have been received to the warehouse, use the Sales Management ||Transactions || Goods Shipment window and create a new record for the BusinessPartner that has sent the returned items:

Using the Create Lines From button, find and select the RMA document (see Orderdropdown and look for items that have negative amount) and check off all the items thathave been received:

Fields to note:• Business Partner - this will be automatically preselected according the the

Business Partner you have entered in the header of the document previously• Order - list of pending orders to be sent or returned, look at the lines with negative

amounts• Warehouse Position - select the storage bin where returned items should be

stored

Go to the [Lines] and double check that they correspond exactly to the items actuallyreturned:

Complete the document back in the [Header].

Inspect

There is no process within Openbravo that specifically supports inspecting the receiveditems and recording their state. As a workaround, the Goods Receipt document discussedpreviously has Description fields that can be used to add details on the returned items.Moreover, by placing them in a specific storage bin dedicated to items pending to beinspected, they are kept separately and can this way be tracked.

Once the goods have been received and inspected, they will normally follow one of thepaths:

1. be stored back into the normal storage bin if the goods are good to be sold again2. be thrown away if they cannot be used again3. be refurbished (repaired) and then stored back into the normal storage bin to be

sold again

Regardless of the case, the Wall to Wall Accuracy Count chapter discusses documentsrequired to support these processes so please see that chapter for more details on how tocreate individual documents.

Store


In order to store the returned item(s) and enable them to be sold again, use theWarehouse Management || Transactions || Goods Movement document to movethem from the Returned bin to the standard warehouse location where these items arestored. Please refer to the Wall to Wall Accuracy Count chapter for details on how to usethis document.

Refurbish


Openbravo does not support any specific documents to record the refurbishment. Instead,this process is done in two steps:

1. Mark the goods as ones to be refurbished by moving them to a specific "To berefurbished" storage bin using the Warehouse Management || Transactions ||Goods Movement document

2. Once the items are refurbished move them back to the standard warehouse locationusing the Warehouse Management || Transactions || Goods Movementdocument from where they can be sold again.

Please refer to the Wall to Wall Accuracy Count chapter for details on how to create theGoods Movement documents.

Dispose


If items that have been received back need to be disposed, follow the two steps:1. Move the returned items into a specific "Dispose" bin using the Warehouse

Management || Transactions || Goods Movement document2. After they have been physically thrown away, enter a Warehouse Management ||

Transactions || Physical Inventory document to set their stock level to zero.

Please refer to the Wall to Wall Accuracy Count chapter for details on how to create theabove documents.

Send Replacement


As part of the RMA (Return Merchandise Authorization) process, a new Sales Order has beencreated, ordering the delivery of replacement items. These items are now pending to beshipped and should be done so using thestandard Sales Management || Transactions || Goods Shipment window or a CreateShipments from Orders form. Please see Order to Cash chapter of the user manual fordetails on how to create this document.

Create Sales Invoice

The Finance role should be used for all steps of this process.

If an invoice IS NOT required then the sales orders created previously for the returned andreplacement items should be closed so that they are not pending to be invoiced anymore.To do that, use the Sales Management || Transactions || Sales Order window to findthe previous orders and click the Close button in the [Header]. Then, in the popup shown,select Close from the dropdown and confirm with OK.

Make sure you do this for both sales orders.

If an invoice IS required (indicated within the Replacement Sales Order - see above) due tothe difference in value of the items returned and replaced, then the following steps are tobe taken:

1. The customer must be credited for the returned items2. A new invoice should be created for the replacement items3. Finally, using a Settlement, the two payments are transformed into a new one with

the amount of the difference (positive or negative)

Crediting the Customer

To credit the customer for the items they have returned, the standard Sales Invoicedocument should be used. Please see Customer Return to Credit chapter for moreinformation on how to do this.

Invoicing Replacement Items

Use the Generate Invoices process or the Sales Invoice window in order to create astandard invoice based on the sales order that was created for the replacement items.Please see Order to Cash chapter for more information on how to do this.

Accounting

Configuration

The Company Admin role should be used.

Apart from the regular configuration of accounting for business partner and products, thereis another setting that affects the posting of negative quantities. Navigate to the FinancialManagement || Accounting || Setup || Accounting Schema and select the schemaused. Find the Allow Negative checkbox:

If this is NOT CHECKED, negative amounts will be posted as positive but will switch thecredit/debit side. If this box IS CHECKED, then negative amounts will be posted as negativeto their originally configured credit/debit side.

Posting of the Sales Invoice

The Finance role should be used.

Allow Negative = Y

When the Sales Invoice is posted with the Allow Negative setting of the Accounting schemaswitched ON, the posting to the general ledger is done this way:

Allow Negative = N

When the Sales Invoice is posted with the Allow Negative setting of the Accounting schemaswitched OFF, the posting to the general ledger is done this way: