Introduction to the Returned Goods to Supplier Register

The Returned Goods to Supplier register allows you to manage Supplier returns. You should add a new record to this register whenever you need to return goods to a Supplier. Each record in the Returned Goods to Supplier register will be connected to a Purchase Order, and it can be either a full Return or a part Return. You cannot use the Returned Goods to Supplier register if you are not subscribing to the Purchase Orders module: use the Stock Depreciation register to remove Items from stock if you are unable to use the Returned Goods to Supplier register.

The difficulty with the returning of goods to their Suppliers is to establish the actual value of the goods being returned. When you remove Items from stock using Deliveries or the Stock Depreciation register, the cost of those Items will be calculated using your usual Cost Model. The value of Items that you remove from stock using the Returned Goods to Supplier register will be calculated in the same way. It may be that this value will not be the same as the value of the Credit Note that you receive from the Supplier, in which case the difference should be posted as a Variance. Before entering any Returned Goods to Supplier records, you should therefore specify a Ret. Goods to Supp. Variance Account in the Account Usage Stock setting. Please refer to the Returned Goods to Supplier Variance page for more details.

When you mark a Return as OK and save, the stock levels of the Items in the Return will be updated accordingly. In addition and if so defined in the Sub Systems setting in the Nominal Ledger and in the Number Series - Returned Goods to Supplier setting, a Nominal Ledger Transaction will be generated automatically to update the stock valuation in the Nominal Ledger. If you receive a replacement unit, you can create another Goods Receipt from the Purchase Order. Otherwise, if you have already received a Purchase Invoice and you do not require a replacement, you can create a Credit Note from the Purchase Invoice. You can also create a Credit Note from the Returned Goods to Supplier record itself, providing you are not using the Consolidate Items to Supplier Cost Account option in the Purchase Invoice Settings setting in the Purchase Ledger. If you have created more than one Invoice from the Purchase Order, you must create the Credit Note from the original Purchase Invoice.

To open the Returned Goods to Supplier register, ensure you are in the Stock module and click (Windows/macOS) or tap (iOS/Android) the [Registers] button in the Navigation Centre. Then, double-click or tap 'Returned Goods to Supplier' in the resulting list. The 'Returned Goods to Supplier: Browse' window will be opened. In this window, Returns will normally be listed in number order, with the Return Number of each Return being shown in the left-hand column (in Poland and Portugal there will be an additional column displaying the Official Number). The Return Number will be followed by a tick if a Return has been marked as OK, the Date, Location, originating Purchase Order Number, Supplier Number and Name and Comment. As in all browse windows, you can re-sort the list and search for particular records.

Please refer now to the following pages:

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Entering a Returned Goods to Supplier record

You can create Returned Goods to Supplier records from the following records, in each case by opening the record in a record window and selecting 'Returned Goods' from the Create menu (Windows/macOS) or + menu (iOS/Android):
  1. From a Purchase Order. The new Return will include every Item in the Order that you have received. You will be able to remove rows and reduce quantities as appropriate. You must have issued and marked as OK at least one Goods Receipt from the Purchase Order.

    You will not be able to create a Return from a Purchase Order if any of the following conditions apply:

    • You are using the Do not allow Returned Goods from Order option in the Purchase Order Settings setting.

    • You have logged in as a user belonging to an Access Group in which access to the 'Returned Goods to Supplier from Purchase Order' Action has been denied.

  2. From a Goods Receipt. The new Return will include every Item in the Goods Receipt. You must have marked the Goods Receipt as OK and saved before you can create a Return.

    You must have created the Goods Receipt from a Purchase Order to be able to create a Returned Goods to Supplier record from it. If you did not create the Goods Receipt from a Purchase Order, you will not be able to create a Returned Goods to Supplier record, so you will need to remove the returned Item from stock using a Stock Depreciation record.

You cannot enter Returns directly to the Returned Goods to Supplier register. You must create them from Purchase Orders and Goods Receipts as described above.

After creating a Return from a Purchase Order or Goods Receipt, the new record will be presented in a 'Returned Goods to Supplier: Inspect' window. This means that the record has already been created and saved into the register. To delete it you must choose 'Delete' from the Record menu (which has a 'cog' icon if you are using iOS or Android.

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The Returned Goods to Supplier register in Standard ERP:

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Entering a Returned Goods to Supplier record - Header

This page describes the fields in the Header of the Returned Goods to Supplier record window. Please follow the links below for descriptions of the other cards:
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No.
Paste Special    Select from another Number Series
An identifying code for each Returned Goods to Supplier record will be generated automatically, and in most cases there will be no need to change it. The default will be chosen as follows:

  1. It will be taken from the first valid row in the Number Series - Returned Goods to Supplier setting.

  2. It will be the next number following on from the last Returned Goods to Supplier record entered.

You may change the default, but not to a number that has already been used. If you have defined at least one number sequence in the Number Series - Returned Goods to Supplier setting, the number you change to must be inside a valid number sequence.

You will not be able to save a Returned Goods to Supplier record if the No. does not belong to a valid number sequence. A valid number sequence is one for the period in which the Transaction Date of the Returned Goods to Supplier record falls and with unused numbers, so this problem will most usually occur at the beginning of a new calendar or financial year.

Supplier
The Supplier Number from the Purchase Order or Goods Receipt. You cannot change the Supplier in a Return.

Name
The Supplier Name, taken from the Purchase Order or Goods Receipt.

Official No.
Paste Special    Select from another Legal Record Number sequence
Default taken from    Legal Record Numbers setting, Sales Ledger
In some countries it is a legal requirement to allocate an official serial number to each Returned Goods to Supplier record. It may be that companies will be assigned number sequences to be used for this purpose (perhaps supplied pre-printed on stationery), or it may be that companies can generate the number sequences themselves using official formatting and other rules.

If the VAT Law in the Company Info setting has been set to "Portuguese", you will need to configure the Legal Record Numbers setting so that Official Nos. will be assigned to Returned Goods to Supplier records when you save them after marking them as OK. This assignment will be automatic. If the VAT Law is not "Portuguese", Official Nos. will not be assigned to Returned Goods to Supplier records automatically.

OK
When the Return is complete and correct, you should mark it as OK and save. No further changes to the record will be possible (with the exception of the Comment field).

Stock levels of the Items in the Return will be updated. If you have so determined in the Sub Systems setting in the Nominal Ledger and in the Number Series - Returned Goods to Supplier setting, a Nominal Ledger Transaction will be created in the Transaction register. Please refer to the Nominal Ledger Transactions from Returned Goods to Supplier Records page for details about this Transaction.

You must mark a Return as OK and save before you can raise a Credit Note for it. If you are using the Create Credit Note when OKing Returned Goods option in the Purchase Order Settings setting in the Purchase Orders module, a Credit Note will be created automatically. This Credit Note will also be marked as OK immediately and automatically. Please refer to the page describing the 'Credit Note' function on the Create menu for more details.

You can use Access Groups to prevent certain users from marking Returned Goods to Supplier records as OK. To do this, deny them access to the 'OK Returned Goods to Supplier' Action.
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The Returned Goods to Supplier register in Standard ERP:

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Entering a Returned Goods to Supplier record - Terms Card

This page describes the fields on the 'Terms' card in the Returned Goods to Supplier record window. Please follow the links below for descriptions of the other cards:
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Date
Paste Special    Choose date
The date of the Return. The default is the current date.

Location
Paste Special    Locations setting, Stock module
Default taken from    Purchase Order or Goods Receipt
The Location from which the Items are to be returned. If you have specified a Main Location in the Stock Settings setting, leaving the field blank means that the Main Location will be used.

You must specify a Location here if you are using the Require Location option in the Stock Settings setting.

You can specify a Location in any of the Return rows (flip C), to override the one entered here.

Reason
Paste Special    Standard Problems setting, Sales Ledger/Service Orders module
Specify here a Standard Problem to describe the reason why you needed to return the goods to the Supplier.

If you need it to be mandatory to specify a Reason in every Returned Goods to Supplier record, select the Force Reason option in the Stock Settings setting.

Purch. Order No.
The original Purchase Order Number will be placed in this field. If you created the Return from a Goods Receipt, this will be the Number of the Purchase Order from which the Goods Receipt was created.

This field cannot be changed, but it will be emptied if you use the fields on flip E to include Items from different Purchase Orders in a single Return.

Route
Paste Special    Routes setting, Stock module
You will tend to use the Route field if you have a fleet of delivery vehicles, each of which repeats the same journey or "Route" every day.

The Route in a Return will be updated if you change Location or the Address Code (i.e. Delivery Address, on the 'Address' card), as follows:

  1. The Route will be taken from the record in the Routes/Locations setting in the Stock module for the Location/Supplier/Delivery Address combination.

  2. If there is no Address Code in the Return, the Route will be taken from the record in the Routes/Locations setting for the Location/Supplier combination in which the Delivery Address is blank. If there is no such record, the Route will be taken from the first Routes/Locations record for the Location/Supplier combination, sorted by Delivery Address.

  3. In all other circumstances (e.g. there is an Address Code in the Return but there is no record in the Routes/Locations setting for the Location/Supplier/Delivery Address combination), the Route will be taken from the Contact record for the Supplier (Route field on the 'Delivery' card).

The Route will be used by the Trip Sheet report in the Stock module. This is a list of the Deliveries, Stock Movements and Returned Goods to Supplier records on a particular Route that can be transported on a specified date or during a specified period.

Tags/Objects
Paste Special    Tag/Object register, Nominal Ledger/System module
You can assign up to 20 Tags/Objects, separated by commas, to a Return, to be transferred to the consequent Nominal Ledger Transaction. You might define separate Tags/Objects to represent different departments, cost centres or product types. This provides a flexible method of analysis that you can use in Nominal Ledger reports.

Usually the Tags/Objects in this field will represent the Supplier and/or the Location. By default, they will be taken from the Purchase Order or Goods Receipt from which you created the Return, but you can change them if necessary.

In the Nominal Ledger Transaction generated from a Return, the Tags/Objects specified here will be assigned to the debit posting to the Purchase Accruals or Returned Goods to Supplier Account. If you are using the Supplier Tag/Object on Stock A/C option in the Account Usage P/L setting in the Purchase Ledger, they will be assigned to the credit posting to the Stock Account as well.

If you are using the Skip Header A/C Tags/Objects on Cost A/C option in the Account Usage P/L setting, these Objects will not be assigned to either posting in the Transaction.

Reduce Quantities
Default taken from    Returned Goods Settings setting, Stock module
Use these options to control the effect of the Return on the originating Purchase Order.
Received Only
This option reduces the Rcvd. and Rcvd. OK quantities on flip C of each Purchase Order row. You should use it when you are returning goods because they are faulty (i.e. you require replacements). Then, after marking the Returned Goods to Supplier record as OK and saving and when the replacements arrive, you can return to the Purchase Order to raise another Goods Receipt for the appropriate quantity to fulfil the Order.

Ordered and Received
This option reduces the Order quantity as well as the Rcvd and Rcvd. OK quantities in each Purchase Order row. You should use it when you return goods without requiring replacements. If you have received a Purchase Invoice for the Order, selecting 'Credit Note' from the Create menu (Windows/macOS) or + menu (iOS/Android) in the Returned Goods to Supplier window will create a Credit Note with appropriate Payment Terms. If you have created more than one Invoice from the Purchase Order, you will not be able to create the Credit Note from the Returned Goods to Supplier record and instead will need to do so from the Order or from the Invoice to be credited.
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The Returned Goods to Supplier register in Standard ERP:

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Entering a Returned Goods to Supplier record - Items Card

This page describes the fields on the 'Items' card in the Returned Goods to Supplier record window. Please follow the links below for descriptions of the other cards:
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Use the grid on the 'Items' card to list the Items being returned.

A new Return will contain the following Items:

Plain and Service Items on the Purchase Order or Goods Receipt will only be transferred to the Returned Goods to Supplier record if you are using the Cost Accounting for Plain and Service Items option in the Cost Accounting setting.

Enter the returned Quantity for each Item and remove any Items not returned by clicking on the row number to the left and pressing the Backspace key (if you are using iOS or Android, long tap on the row number on the left of the row and select 'Delete Row' from the resulting menu).

You cannot enter a Quantity that is greater than the quantity received, and you cannot add rows to a Return.

Flip A

Item
The Item Number from the Purchase Order or Goods Receipt. This field can't be changed.

Qty
Enter the quantity returned. The default is the quantity that you have received, providing it is still in stock. Any quantity that is no longer in stock (e.g. it has been delivered to a Customer) will not be included in a Returned Goods to Supplier record that was created from a Goods Receipt. It will be included in a Returned Goods to Supplier record that was created from a Purchase Order, but you will need to reduce the quantity before being able to mark the Return as OK.

You can change the Qty, but not to a quantity greater than that originally received (or remaining in stock if some of those originally received have been delivered to a Customer or otherwise removed from stock).

If you are unable to change the Qty, a possible reason might be that you are using the Generate Bulk Serial Numbers automatically option in the Serial Number Tracking setting and the Serial No. field on flip D contains a range of Serial Numbers (one for each unit). To change the Qty, first remove the range of Serial Numbers from the Serial No. field.

Description
The Item Name from the Purchase Order or Goods Receipt.

Supplier Item No.
The code allocated to the Item by the Supplier.

Coeff
Default taken from    Item
The Unit Coefficient of the Item is shown here, taken from the 'Stock' card of the Item. If you are maintaining stock quantities using different units of measurement, this coefficient is the ratio between those units of measurement.

Flip B

Cost A/C
Paste Special    Account register, Nominal Ledger/System module
Default taken from    Goods Receipt row (Stock A/C)
The Account entered here will be credited in any Nominal Ledger Transaction created when you mark the Return as OK and save.

When you create a Returned Goods to Supplier from a Goods Receipt, the rows in the Goods Receipt will be copied to the Return. As part of that process, the Stock A/C in each Goods Receipt row will be copied here. When you create a Returned Goods to Supplier from a Purchase Order, the Items in the Purchase Order that you have received will be copied to the Return. Again, the Stock A/Cs in the relevant Goods Receipt rows will be copied to this field in the equivalent rows in the Return.

Purch A/C
Paste Special    Account register, Nominal Ledger/System module
The Account entered here will be debited in any Nominal Ledger Transaction created when you mark the Return as OK and save.

If you have specified a Ret. Goods to Suppliers Account in the Account Usage Stock setting and if you have not selected the Ret. Goods to Supplier A/C from Goods Receipt option in the same setting, that Account will be copied to this field in each Return row.

If you have not specified a Ret. Goods to Suppliers Account or if you have selected the Ret. Goods to Supplier A/C from Goods Receipt option, the Purch A/C (Purchase Accruals Account) in each Goods Receipt row will be copied to this field in the equivalent rows in the Return, in a similar manner to that described for the Cost A/C above.

Tags/Objects
Paste Special    Tag/Object register, Nominal Ledger/System module
Default taken from    Goods Receipt row
You can assign up to 20 Tags/Objects, separated by commas, to a row in a Return, to be transferred to the consequent Nominal Ledger Transaction. You might define separate Tags/Objects to represent different departments, cost centres or product types. This provides a flexible method of analysis that you can use in Nominal Ledger reports.

Usually the Tags/Objects in this field will represent the Item. By default, the Tags/Objects in each Goods Receipt row will be copied to this field in the equivalent rows in the Return, in a similar manner to that described for the Cost A/C above.

In the Nominal Ledger Transaction generated from a Return, any Tags/Objects specified here will be assigned to the credit posting to the Stock Account and the debit posting to the Purchase Accruals or Returned Goods to Supplier Account.

Flip C

Location
Paste Special    Locations setting, Stock module
The Location from which the Item is to be returned, if different from the Location on the 'Terms' card. You can enter a separate stock Location for each row of the Return.

GR Cost Price
The cost price per unit from the originating Goods Receipt row, calculated by dividing the Sum in the Goods Receipt row by the Qty.

If the sum of the GR Cost Price * Qty (i.e. the actual cost that was paid for the Items being returned) is not the same as the value in the Row FIFO field to the right (i.e. the FIFO value of those Items), the difference will be posted to the Ret. Goods to Supp. Variance Account specified in the setting.

Price Var.
Please refer to the Price Variances page for details about this field.

FIFO
The unit value of the Item, to be subtracted from your Nominal Ledger Transaction stock valuation. If the Quantity is greater than one, this field will show the average unit cost value. The total value will be shown in the Row FIFO field to the right.

This figure will be recalculated each time you same the Returned Goods to Supplier record, usually using the Cost Model specified in the relevant Item or Item Group record. If that Cost Model is Default, the Primary Cost Model specified in the Cost Accounting setting will be used. The exception is when the Item requires Serial Numbers and you are using the Cost Price for Serial Number option in the Cost Accounting setting or in the relevant Item or Item Group record, in which case the actual Cost Price of the selected Serial Number will be brought in to this field. In other words, this figure will be calculated in the usual way for all removals from stock.

Row FIFO
The total stock value of the Items on this row (unit cost from the FIFO field multiplied by quantity). This figure will be recalculated each time you save the Returned Goods to Supplier record.

When you mark the Returned Goods to Supplier record as OK and save, this figure will be credited to the Stock Account and debited to the Purchase Accruals or Returned Goods Account. If you create a Credit Note from the record, this figure will be copied to the Credit Note, where you will be able to change it if necessary.

Flip D

Position
Paste Special    Position register, Warehouse Management module
If the Location is a large one that has been sub-divided into Positions, enter here the Position where the Item is currently stored. You must specify a Position if you have selected the Demand Position option in the Location in question. The Position must be in the correct Location. When you mark the Return as OK and save, the Status of the Position specified here will be changed to "Free" automatically. If you created the Returned Goods record from a Goods Receipt, a default Position will be taken from the relevant Goods Receipt row.

Serial No.
Paste Special    Serial Numbers of Items in stock
If the Item uses Serial Numbers or batch numbers, you must enter a valid number here.

If you create a Return from a Goods Receipt, any Serial Numbers in the Goods Receipt will be copied to the Return as defaults. If you create a Return from a Purchase Order, no Serial Numbers will be copied to the Return.

For Items with Serial Numbers at the Unit level, if the quantity returned is greater than 1, the Returned Goods to Supplier record will automatically contain an appropriate number of separate rows each with a Quantity of one to allow you to enter Serial Numbers individually.

If you are using the Generate Bulk Serial Numbers automatically option in the Serial Number Tracking setting, you will be able to enter a range of Serial Numbers in this field. Enter the first Serial Number of a range in this field and then move to the next field: the Serial Number that you entered will be overwritten by a range of Serial Numbers separated by a colon (:). The range will contain the appropriate number of Serial Numbers for the Qty. If any of the Serial Numbers in the range are no longer in stock or you only need to return some of the Serial Numbers in the range, you will need to split the row using the fields on flip E. Please refer to the description of flip E below for details. This field can only contain a range if you are using the Generate Bulk Serial Numbers automatically option.

If you have not specified a Location in the Return, the 'Paste Special' list will show the Serial Numbers of Items in every Location, with an indication of the Location in which each Serial Number is stored. However, if you have specified a Location on the 'Terms' card or on flip C of the row, the 'Paste Special' list will only show the Serial Numbers stored in that Location.

If you would like the Best Before date and/or Batch Status of each Serial Number to be shown in the 'Paste Special' list, select the Show Best Before Dates and/or Show Batch Status options respectively in the Item Settings setting in the Sales Ledger. Please refer to the description of the Batch Specifications setting in the Stock module for details about Best Before Dates and here for details about Batch Statuses.

The 'Paste Special' list will not be shown if you are using the No Serial No. on Goods Receipts option in the Stock Settings setting. In this case, you must still enter a Serial Number and, if the Item has Serial Numbers at the Unit level, the Quantity must still be one, but no check will be carried out that the Serial Number you have used is valid (i.e. one that is currently in stock).

The cost value of an Item with Serial Numbers is controlled by the Cost Price for Serial Number option in the Cost Accounting setting, but you can override it in individual Item and Item Group records ('Cost Model' card in both cases). If you are not using this option, a Cost Price calculated using the usual Cost Model will be placed in the FIFO and Row FIFO fields, even though this may not be appropriate for the Serial Number chosen (e.g. if you are using the FIFO Cost Model, the oldest Cost Price will be placed in the FIFO and Row FIFO fields, even if the chosen Serial Number is not the oldest one). If you are using the Cost Price for Serial Number option, the actual Cost Price of the selected Serial Number will be placed in the FIFO and Row FIFO fields.

Width, Height, Depth
Default taken from    Item
These fields contain the dimensions of the Item.

Flip E

You can use the fields on flip E in two situations:
To include more than one Goods Receipt in a single Returned Goods to Supplier record, follow these steps:
  1. Create a Returned Goods to Supplier record from a Purchase Order or Goods Receipt as normal. The Purchase Order Number will be shown on the ' Terms' card of the Return, and Goods Receipt Number and row numbers will be shown on flip E. Note that row numbers begin at 0 inside the application, so for example row 3 in the interface will be shown as row 2 in the GR Row field.

  2. Enter the Number of the second Goods Receipt in the GR No. field in the first empty row in the Return. You can use 'Paste Special' to choose the Goods Receipt if necessary.

  3. If you want to include the entire Goods Receipt in the Return, enter "0" in the GR Row field. If you only want to include part of the Goods Receipt, you can either bring in the entire Goods Receipt and remove the rows you don't need, or you can enter the row number of the Goods Receipt row that you need. For example, if you need to bring row 3 of a Goods Receipt in to the Return, enter "3" in the GR Row field. Row 3 in the Goods Receipt will be brought in to the Return, and the number in the GR Row field will be changed to "2".

  4. Step 2 will remove the Purchase Order Number from the 'Terms' card of the Return. Add this to the PO No. field in the original rows in the Return (you will not be able to save the Return while these fields are empty).

  5. If you need to bring a Purchase Order in to the Return, follow steps 1-4 above but use the PO No. and PO Row fields instead of the GR No. and GR Row fields. Using this method, you will only be able to bring in Purchase Orders that have been marked as OK.
If a Return includes Items from more than one Purchase Order, you will not be able to create a Credit Note from the Create menu of the Return. Instead, you will need to create it from the Purchase Invoice that is to be credited.

If you are using the Generate Bulk Serial Numbers automatically option in the Serial Number Tracking setting and you only need to return some of the Serial Numbers in a range, follow the steps listed below. For example, you might have received Serial Numbers 1:10 from the Supplier and you need to return Serial Numbers 2, 3 and 6.

  1. Create a Returned Goods to Supplier record from a Purchase Order or Goods Receipt as normal.

  2. If you create the Return from a Goods Receipt, the Serial Number (1:10 in the example) will be copied to the Serial No. field on flip D of the Return. Remove this Serial Number.

  3. Change the Qty to 2 and then enter "2:3" as the Serial Number. If you are unable to change the Qty, the probable reason is that you did not remove the Serial Number in step ii.

  4. On flip E of the Return, enter the Goods Receipt Number in the GR No. field and the row number in the GR Row field. For example, if the Serial Numbered Item is in row 3 in the Goods Receipt, enter "3" in the GR Row field. The row will be brought in to the Return, and the GR Row will be changed to "2".

  5. Follow steps ii and iii to change the Qty to 1 and enter "6" as the Serial Number.

Footer

Total Qty
This field records the total number of units being returned. It is updated automatically.

TOTAL
This field records the total cost value of the Items being returned (the sum of the figures in the Row FIFO field on flip C). It is updated automatically.
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The Returned Goods to Supplier register in Standard ERP:

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Entering a Returned Goods to Supplier record - Currency Card

This page describes the fields on the 'Currency' card in the Returned Goods to Supplier record window. Please follow the links below for descriptions of the other cards:
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Currency
Paste Special    Currency register, System module
The Currency of the Return.

Exchange Rates
Default taken from    Base Currency Rates setting and/or Exchange Rate register, System module
By default, these fields will display the exchange rates for the specified Currency on the Date of the Return.

One of two conversion methods will be used to calculate prices in Currency. The Dual-Base system will be useful for companies that have offices in two countries that need to report in both Currencies, for companies operating in countries where there is a second Currency (usually the US Dollar or Euro) in common use in addition to the national one, and for companies in the Euro zone who retain their old national Currency for comparison purposes. The second method is a simple conversion from the foreign Currency to the home Currency, applicable to the majority of worldwide Currency transactions. These are described below.
Exchange Rates (Dual-Base System)
If you are using the Dual-Base system, the Base Currency 1 and 2 fields on the left show in the form of a ratio the exchange rate between the two base Currencies (taken from the record in the Base Currency Rates setting that applies on the Return Date).

Note that European Monetary Union (EMU) regulations specify that the ratios must always show how many units of the home or foreign Currency can be bought with one Euro.

Exchange Rates (Simple Currency Conversion System)
In the case of a simple currency conversion system, the Rate and right-hand Base Currency 1 fields are used to show a simple exchange rate between the foreign and home Currencies.
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The Returned Goods to Supplier register in Standard ERP:

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Entering a Returned Goods to Supplier record - Extra Costs Card

This page describes the fields on the 'Extra Costs' card in the Returned Goods to Supplier record window. Please follow the links below for descriptions of the other cards:
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Plan. Sent Date
Paste Special    Choose date
Plan. Sent Time
Paste Special    Current time
Use these fields to specify when you plan to send the Items in the Return to the Supplier.

In Portugal (i.e. if the VAT Law in the Company Info setting is "Portuguese"), SAF-T reporting requirements demand that a Planned Sent Date and Time must be recorded for each Return. Use these fields to record the Planned Sent Date and Time, with these controls:

  • If you make an entry in one field, you cannot then leave the other field empty. For example, if you specify a Planned Sent Date, you must also specify a Planned Sent Time.

  • The Planned Sent Date cannot be earlier than the Return Date.

  • If the Planned Sent Date and the Return Date are both today, the Planned Sent Time cannot be earlier than the current time.

In all other countries, these fields are optional, and there are no controls over how you use them.

If you need this information printed on your Invoice documentation, include the "Planned Sent Date" and "Planned Sent Time" fields in your Form Template designs.

Plan. Arrival Date
Paste Special    Choose date
Plan. Arrival Time
Paste Special    Current time
Use these fields to specify when you expect the Items in the Return will arrive with the Supplier.
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The Returned Goods to Supplier register in Standard ERP:

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Entering a Returned Goods to Supplier record - Address Card

This page describes the fields on the 'Address' card in the Returned Goods to Supplier record window. Please follow the links below for descriptions of the other cards:
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Address Code
Paste Special    Delivery Addresses setting, Sales Orders module
If a Supplier has several Delivery Addresses (e.g. it has several branches), you can list them in the Delivery Addresses setting in the Sales Orders module. Select the correct one for a particular Return using the 'Paste Special' function. The full Delivery Address will be brought in to the fields below. Usually, only Delivery Addresses for the specified Supplier and those with no Supplier specified will be included in the 'Paste Special' list. If you would like the 'Paste Special' list to contain all Delivery Addresses, select the Paste All Delivery Addresses option in the Order Settings setting in the Sales Orders module.

Delivery Address
Default taken from    Delivery Address or Contact record for the Supplier (Delivery Address)
Enter the Supplier Address to which the goods are to be returned.
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The Returned Goods to Supplier register in Standard ERP:

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Entering a Returned Goods to Supplier record - Freight Card

This page describes the fields on the 'Freight' card in the Returned Goods to Supplier record window. Please follow the links below for descriptions of the other cards:
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Freight Company
Paste Special    Freight Companies setting, Stock module
The Freight Companies setting stores information regarding the courier or haulage companies that your business uses to transport goods.

Enter here the Freight Company that you will use for the Return. The Freight Company Registration Number, Freight Company, Truck Information, Driver and CMR Text will then be brought in from the Freight Companies setting. You can change them here for an individual Return. For descriptions of these fields, please refer to the page describing that setting here.
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The Returned Goods to Supplier register in Standard ERP:

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Entering a Returned Goods to Supplier record - Comment Card

This page describes the fields on the 'Comment' card in the Returned Goods to Supplier record window. Please follow the links below for descriptions of the other cards:
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Comment
Any comment entered here (perhaps the reason for the return) will be shown in the 'Returned Goods to Supplier: Browse' window.

The Comment field will remain editable after marking a Return as OK and saving.
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The Returned Goods to Supplier register in Standard ERP:

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Nominal Ledger Transactions from Returned Goods to Supplier Records

After entering a Returned Goods to Supplier record and checking that it is correct, you should mark it as OK and save it. A Nominal Ledger Transaction will be generated automatically if you have so determined in the Sub Systems setting in the Nominal Ledger and in the Number Series - Returned Goods to Supplier setting.

The Stock Account(s) credited in this Nominal Ledger Transaction will be will be taken from the Cost A/C field on flip B of each row in the Returned Goods to Supplier record. When you create a Returned Goods to Supplier from a Goods Receipt, the rows in the Goods Receipt will be copied to the Return. As part of that process, the Stock A/C in each Goods Receipt row will be copied to the Cost A/C field in the relevant row in the Return. When you create a Returned Goods to Supplier from a Purchase Order, the Items in the Purchase Order that you have received will be copied to the Return. Again, the Stock A/Cs in the relevant Goods Receipt rows will be copied to the Cost A/C field in the equivalent rows in the Return.

The Returned Goods to Supplier or Purchase Accruals Account(s) debited in this Transaction will be taken from the Purch A/C field on flip B of each row in the Returned Goods to Supplier record. If you have specified a Ret. Goods to Suppliers Account in the Account Usage Stock setting and if you have not selected the Ret. Goods to Supplier A/C from Goods Receipt option in the same setting, this is the Account that will be debited. If you have not specified a Ret. Goods to Suppliers Account or if you have selected the Ret. Goods to Supplier A/C from Goods Receipt option, the Purch A/C (Purchase Accruals Account) in each Goods Receipt row will be copied to the Purch A/C field in the equivalent rows in the Return, in a similar manner to that described for the Cost A/C above.

Tags/Objects representing the Supplier will be shown on the 'Terms' card in the Returned Goods to Supplier record. They will be assigned to the debit postings to the Purchase Accruals or Returned Goods to Supplier Account(s) and, if you are using the Supplier Tag/Object on Stock A/C option in the Account Usage P/L setting, to the credit postings to the Stock Account(s). However, if you are using the Skip Header A/C Objects on Cost A/C option in the same setting, these Tags/Objects will not be assigned to either posting in the Transaction. The Tags/Objects on flip B of the 'Items' card representing the Items will always be assigned to both postings.

Below is shown an example of a Nominal Ledger Transaction created from a Returned Goods to Supplier record:

If you are using the Negative Amounts option in the Transaction Settings setting in the Nominal Ledger, the Transaction will be slightly different, with negative amounts being credited to the Returned Goods to Supplier or Purchase Accruals Account(s) and debited to the Stock Account(s).

Once the Transaction has been generated, you can look at it straight away using the 'Open NL Transaction' function on the Operations menu (Windows/macOS) or Tools menu (iOS/Android) (subject to access rights set in the Access Groups setting in the System module).

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The Returned Goods to Supplier register in Standard ERP:

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Returned Goods to Supplier Variance

When you return an Item to a Supplier, the calculation of the cost value of that Item should ideally satisfy two requirements:
  1. The cost should be the same as the original purchase cost. This will be the value of any Credit Note that the Supplier sends you, and is the value that will allow the Purchase Accruals Account to balance,

  2. Returning an Item to its Supplier is one way of removing that Item from stock. The value of all removals from stock should be calculated using the usual Cost Model.
These two requirements can result in two different valuations for the Item being returned. The difference between the two valuations is a variance. That variance will be posted to the Returned Goods to Supplier Variance Account specified on the 'Variances' card in the Account Usage Stock setting:

In this example, we have purchased an Item on two different occasions at two different prices, 10.00 and 11.50:

If we need to return the second one, we will create a Returned Goods to Supplier record from the second Goods Receipt. The original purchase cost of that unit will be 11.50 (shown in the GR Cost Price field on flip C) but using the Weighted Average Cost Model the stock value will be 10.75 (shown in the FIFO field, after saving). (If we were using the FIFO Cost Model the value to be removed from stock would be 11.50):

In the resulting Nominal Ledger Transaction, the original purchase cost will be debited to the Returned Goods to Supplier (in this case) or Purchase Accruals Account, and the value to be removed from stock will be credited to the Stock Account. The difference will be posted to the Returned Goods to Supplier Variance Account:

The value removed from stock and credited to the Stock Account is the Weighted Average value, 10.75, leaving 10.75 as the value on the Stock Account. If the value removed from stock was the actual value of the unit, 11.50, that would leave 10.00 as the value on the Stock Account. There would then be an imbalance when the other unit is removed from stock at its Weighted Average value of 10.75.

In a Credit Note created from the Returned Goods to Supplier record, the value will be the original purchase cost:

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The Returned Goods to Supplier register in Standard ERP:

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Returning Goods to a Supplier when there is no Purchase Order

You can receive goods into stock by entering a Goods Receipt directly to the Goods Receipt register (i.e. without a Purchase Order). Because of the lack of a Purchase Order, you will not be able to use a Returned Goods to Supplier record to return these goods to the Supplier. Instead, you will have to remove the Items from stock using a Stock Depreciation record.

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The Returned Goods to Supplier register in Standard ERP:

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Operations Menu - Returned Goods to Supplier

The Operations menu for the 'Returned Goods to Supplier: New' and 'Returned Goods to Supplier: Inspect' windows is shown above. There is no Operations menu for the 'Returned Goods to Supplier: Browse' window.

If you are using Windows or macOS, you can open the Operations menu by clicking the button with the 'cog' icon (shown highlighted in the illustration above). If you are using iOS or Android, you can access the Operations menu functions through the Tools menu (with 'wrench' icon).

Note that in Standard ERP version 8.0, some functions that were previously on the Operations menu were moved to the Create and Row menus. On iOS and Android there is no Row menu, so on those platforms the Row menu functions remain on the Operations/Tools menu.

Please follow the link below for details about the function on the Operations menu:

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The Returned Goods to Supplier register in Standard ERP:

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Operations Menu - Returned Goods to Supplier - Open NL Transaction

This page describes the 'Open NL Transaction' function on the Operations menu in the Returned Goods to Supplier record window. If you are using iOS or Android, the 'Open NL Transaction' function is on the Tools menu (with 'wrench' icon).

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When you mark a Return and save it, a Nominal Ledger Transaction will be created (if so defined in the Sub Systems setting in the Nominal Ledger and in the Number Series - Returned Goods to Supplier setting). The 'Open NL Transaction' function allows you to view that Transaction from the Return.

When you select this function from the Operations menu (Windows/macOS) or Tools menu (iOS/Android), the Transaction will be opened in a new window.

You can use Access Groups to prevent certain users from opening Transactions from Returns. To do this, deny them access to the 'Open Transactions from Operations Menu' Action or to the Nominal Ledger altogether.

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The Returned Goods to Supplier register in Standard ERP:

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Create Menu - Returned Goods to Supplier

The Create menu for the 'Returned Goods to Supplier: New' and 'Returned Goods to Supplier: Inspect' windows is shown above. If you are using iOS or Android, you can access the Create menu functions through the + menu.

Please follow the link below for details about the function on this menu.

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The Returned Goods to Supplier register in Standard ERP:

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Create Menu - Returned Goods to Supplier - Create Credit Note

This page describes the 'Credit Note' function on the Create menu in the Returned Goods to Supplier record window. If you are using iOS or Android, the 'Credit Note' function is on the + menu.

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When you have created a Purchase Invoice from a Purchase Order and you then return the goods without requiring a replacement, you can create a Credit Note using the following methods:

  1. From the Return Goods to Supplier record, select 'Credit Note' from the Create menu (Windows/macOS) or + menu (iOS/Android). This function is described on this page.

  2. From the original Purchase Invoice, select 'Credit Note' from the Create or + menu. Method 1 might be preferred to this one for the following reasons:

    1. Every Item in the Invoice will be included in the Credit Note, while method 1 will only credit the returned Items.

    2. If the Returned Goods to Supplier record debited the Returned Goods to Supplier Account, method 1 will create a Credit Note that will credit the same Account. A Credit Note created from a Purchase Invoice will credit the Purchase Accruals Account (although you can of course change the Account before marking the Credit Note as OK).

    You cannot create a Credit Note from a Returned Goods to Supplier record that is returning Items from more than one Purchase Order. In this case you must create the Credit Note from the original Purchase Invoice.

    If you create a Credit Note for a partial Return from the original Purchase Invoice, be sure to update the quantities on flip B of each row in the Credit Note as well as the Amounts on flip A. This will ensure that the Invoiced quantities on flip C of each Purchase Order row are updated correctly.

  3. If you have not yet created a Purchase Invoice, a partial Return will be included when you do create the Invoice from the Purchase Order (but not from the Goods Receipt). If you have already created a Purchase Invoice, you can create another Invoice from that Order. This will be an Invoice with negative quantities rather than a Credit Note.

  4. If you are using the Create Credit Note when OKing Returned Goods to Supplier option in the Purchase Order Settings setting in the Purchase Orders module, a Credit Note will usually be created automatically when you mark a Return as OK and save.

    No Credit Note will be created if the returned Items have not yet been invoiced. Also, as mentioned in step 2, no Credit Note will be created from a Returned Goods to Supplier record that is returning Items from more than one Purchase Order.

    The new Credit Note will be marked as OK immediately and automatically.

To be able to create a Credit Note from a Returned Goods to Supplier record, you must first have marked the Return as OK and saved, and the returned Items must have been invoiced.

If you are likely to create partial Returns and therefore partial Credit Notes, it is recommended that you do not use the Consolidate Items to Supplier Cost Account option in the Purchase Invoice Settings setting. If you are using this option, every row in a Purchase Order will be consolidated to a single row in a Purchase Invoice. If you partially credit the Purchase Invoice, this partial credit will not be fed back to the Purchase Order correctly because it will not be possible to establish which rows in the Purchase Order should be affected. The consequence will be that the Invoiced figures on flip C of each Purchase Order row will all be set to blank as if the Credit Note were crediting the Purchase Invoice in full.

To create a Credit Note, open the Return in a record window and select 'Credit Note' from the Create menu (Windows/macOS) or + menu (iOS/Android). A new record will be created in the Purchase Invoice register and opened in a new window, entitled 'Purchase Invoice: Inspect'. This means that it has been created and saved and is being opened for amendment and approval.

The Payment Term in the Credit Note ("CN" in the illustration) will be taken from the first record in the Payment Terms setting that has the Type "Credit Note". If you have only created one Purchase Invoice from the Purchase Order, its Invoice Number will be shown in the Credit of Invoice field, stating that it is the Invoice being credited. If this is wrong, you can change it, using 'Paste Special' if necessary to bring up a list of open (unpaid) Purchase Invoices. If you have created more than one Purchase Invoice from the Purchase Order, the Credit of Invoice field will be empty (i.e. there will be no reference to the Purchase Invoice being credited) because it will not be possible to establish which Invoice is to be credited. You will be able to specify this yourself, again using 'Paste Special' if necessary.

The value of each row in the Credit Note will be taken from the GR Cost Price field on flip C of the corresponding row in the Returned Goods to Supplier record. The Account in each row will be the Returned Goods to Supplier or Purchase Accruals Account debited from the corresponding Returned Goods to Supplier row: please refer to the Nominal Ledger Transactions from Returned Goods to Supplier records page for details about how this Account will be chosen.

The Creditor Account will be taken from the original Purchase Invoice. The VAT Code on each row will be taken from the appropriate Purchase Order row (flip A). The value in the Calc VAT field in the footer will be calculated using the VAT Codes from each row.

As soon as you create the Credit Note, the invoiced quantity on flip C of the originating Purchase Order will be updated.

When the Credit Note is complete, tick the OK check box and save. This signifies that the Credit Note has been approved. Associated transactions in the Nominal Ledger will now be raised and you will no longer be able to modify the Credit Note.

Please refer here or a full description of the Invoice/Credit Note screen, and here for details about Credit Notes.

To close the window and return to the Return, click the close box (Windows/macOS) or tap < (iOS/Android). You will be asked if you want to save any changes.

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The Returned Goods to Supplier register in Standard ERP:

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Row Menu - Returned Goods to Supplier

The matrix in the Returned Goods to Supplier window has its own menu, which contains a function that refers to or affects an individual row in the matrix. This is sometimes known as the "Row Menu".

If you are using Windows or macOS, you can open the Row menu by first clicking in any field in the row in question (i.e. the row to which the function is to be applied), and then right-clicking (Windows) or Ctrl-clicking (macOS) the row number (on the left of the row). A menu will appear, where you can select the function:

On iOS and Android there is no Row menu, so on those platforms you will find the Row menu function on the Tools menu (with 'wrench' icon), together with the Operations menu functions.

Please follow the links below for details about the function on the Row menu:

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The Returned Goods to Supplier register in Standard ERP:

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Row Menu - Returned Goods to Supplier - Quality Control

This page describes the 'Quality Control' function on the Row menu in the Returned Goods to Supplier record window. If you are using iOS or Android, the 'Quality Control' function is on the Tools menu (with 'wrench' icon).

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One reason for needing to return an Item with a Serial Number and a Best Before Date to its Supplier might be because it failed a quality control test. You can use the 'Quality Control' function to record the result of this test.

To use this function, first place the insertion point in the Return row containing the Item that has been tested. Then open the Row menu by right-clicking (Windows) or ctrl-clicking (macOS) the row number. When the Row menu opens, select 'Quality Control'. If you are using iOS or Android, select 'Quality Control' from the Tools menu (with 'wrench' icon). A 'Batch Quality Control: New' window will open, allowing you to enter the details of the test. In particular, use the Result field to connect the Batch Quality Control record to a record in the Batch Status setting. After you mark the Batch Quality Control record as OK and save, this Batch Status record will determine whether you will be warned when using the Item/Serial Number combination in an outgoing stock transaction, or whether you will be prevented from using the Item/Serial Number altogether (in the case of a Return you will usually choose a Batch Status that prevents the sale of the Item/Serial Number combination).

Please refer here for more details about the 'Quality Control' function and about alternative methods that you can use to record the result of a quality control test on the Item/Serial Number.

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The Returned Goods to Supplier register in Standard ERP:

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