V9 - Adding and editing customer returns

warningIMPORTANT: This transaction type can be added, edited, or deleted in SOS Inventory only. The resulting journal entries are synced to QuickBooks Online. NEVER edit or delete these entries in QuickBooks Online because they are synced from SOS to QuickBooks only. Changes on the QuickBooks side DO NOT sync back to SOS Inventory.

Select your method for creating a return transaction.
1. Use either of the following direct methods, which require manual entry of all data fields.
  1. The Quick add (add_circle) menu. On the Task bar, go to Quick add > Sales > Return.
  2. The Returns list. Go to Operations > Sales > Returns, then select +Add.
2. Generate a return from the associated sales order, invoice, sales receipt, return merchandise authorization (RMA), or shipment transaction. Generating a return from a shipment is strongly recommended as the best of all available methods for creating a return because the shipment is the only one that tracks the cost of the item as it is being removed from inventory.
  1. Locate the parent transaction record on its appropriate list. Under its Actions menu dropdown, select Create return.
  2. SOS Inventory will automatically import all relevant information from the parent transaction into the return.
  3. Skip to Step 3 to continue.

In the Customer field:
1. For an existing customer, use the dropdown list to select the desired customer. SOS Inventory will populate the return fields with relevant data from the existing customer definition.
2. If adding a new customer, select Add new customer.
  1. A pop-up window will appear with a Customer edit page.
  2. Complete the data fields needed for the customer. Refer to Customer management and the Customers list and Customer field descriptions for more information.
  3. Save and close the Customer edit page when finished.
  4. SOS Inventory will populate the return fields with relevant data from the new customer definition.
Since returns and other sales forms share many of the same fields, explanations for fields pertaining to any sales transaction are housed under Sales transaction field descriptions. Refer to the descriptions as you complete the return.
In the Return reference # field:
1. If you created the return directly and have enabled the Returns numbering setting (Tools & settings > Sales > Returns > Returns numbering), leave this field blank. The system will assign a reference number when the transaction is saved.
2. If your company has not enabled Returns numbering, or you wish to put in your own return reference number, manually enter the number.
3. If you generated the transaction from another transaction, the return will inherit the parent transaction's reference number.
Select from the Location dropdown where the items are being returned.
If you revise the Customer notes field, it will also update the Notes field in the customer definition when the transaction is saved.
If the customer is returning items from one or more RMAs, you can add them to the same return by using the Add RMA field dropdown.
1. Repeat as many times as needed to bring the items from the other RMAs into the return.
2. For each line item on the return, SOS will import into the Applied to field the associated RMA transaction number and corresponding line number.
Enter or edit the line items as needed.
1. If the return is created directly, when you add line items, only the Item name and Description are added for an item. You must manually enter all other information (such as Quantity, Unit price, and Restock value) required to complete the return.
2. If you generate a return from another transaction:
  1. Adjust the item quantities on the return to reflect what the customer is returning.
  2. Delete from the return any line items that are not being returned. Do not enter a quantity of zero.
3. If any items are bin-, serial-, and/or lot-tracked, make their appropriate bin/serial/lot assignments.
  1. For bins:
    1. If the return was generated from a shipment transaction, the return will inherit the bin number that was on the shipment.
    2. If using any other method to create the return, you will need to select the bin from the dropdown. See Using bin-tracked items on transactions if needed.
  2. For serial items:
    1. If the return was generated from a shipment with multiple serial units for the returned item, you must remove the serial numbers that are NOT being returned from the transaction.
      1. Select the format_list_bulleted icon in the Description column’s S/N field.
      2. In the pop-up window’s Select column, remove each serial number that is NOT being returned by clicking its number. The serial number count should match the Quantity listed for the item on the return transaction. When only the serial number of each unit to be returned remains in the Select column, press Done.
    2. If using any other method to create the return (other than generating it from a shipment), you must select the serial number(s) to be returned. See Using existing serial numbers on transactions for more details, if needed.
      1. From the Select/upload serial numbers pop-up window, select the appropriate serial number that matches the sales transaction that you are generating the return from. Please note that the serial numbers displayed in the Available column are serial numbers currently owned by that customer for that item. The numbers can be from multiple past sales.
      2. If generated from an invoice that was created from a shipment or sales order, the serial numbers will be referenced in the Description block on the return, as shown in the screenshot below. You must still select the serial numbers for the S/N field, but the Description reference lets you know which number(s) you need to select. This makes it easier to select the correct serial numbers, as explained in Step 8.c.ii.2.a.
  3. For lots:
    1. If the return was generated from a shipment transaction, the return will show all lines for each lot, if multiple lots were shipped. Delete any line items with lots that are NOT returning any quantities.
    2. If using any other method to create the return, you will need to select the lot number(s). See Using existing lots on transactions for more details.
      1. Select the appropriate lot number that matches the sales transaction that you are generating the return from. The lot numbers displayed in the Lot dropdown list (located in the Description column) are lot numbers previously sent to that customer for that item. The numbers can be from multiple past sales.
      2. If generated from an invoice that was created from a shipment or sales order, the lot numbers will be referenced in the Description block on the return, as shown in the screenshot below. You must still select the lot numbers for the Lot field, but the Description reference lets you know which number you need to select. This makes it easier to select the correct lot number from the dropdown, as explained in Step 8.c.iii.2.a.
      3. If more than one lot of the same item is returned, each lot must be entered as a separate line item. Refer to Handling a transaction that includes different lots of the same lot-tracked item for more details.
4. Complete these important fields:
  1. Restock value (see the section below, Restock value on returns, for important information about this field)
  2. Shipping information
    1. Ship method
    2. Tracking number
    3. Shipping cost
    4. Create bill (if you need a bill in QuickBooks to pay the shipping carrier)
  3. Create credit memo (if you are issuing the customer a credit).
5. Complete other fields as needed.
Upon saving the return, the system:
1. Adds the return to the Returns list.
2. Creates journal entries for each item returned, moving the restock value for that item from the cost of goods sold account to the inventory asset account, based on the item definition.
3. If Create credit memo is checked, an entry is sent to QuickBooks to create a credit memo against that customer's record.

Restock value on returns

When adding a return, the items go back into inventory. Accordingly, they should have a value or cost basis. The system uses the Restock value for each line item as the cost basis for future transactions and MUST be entered before saving the transaction. You can adjust the restock value manually to account for damages, etc.

The Restock value is retrieved based on how the return is created:

If added directly, then the Restock value will be $0.00, allowing you to add your own value.
If generated from a sales order, sales receipt, invoice, or RMA:
- The Restock value field of the return will show the item’s purchase cost as listed in the item definition.
- For an assembly, the Restock value reflects the bill of materials (BOM) cost.
If generated from a shipment, the exact cost of goods sold value is populated in the Restock value field from the shipment transaction. No other method for creating a return can provide an exact restock value.
If you adjust the Quantity field of a returned item, you will need to manually adjust the restock value based on the quantity returned. This is because LIFO and FIFO valuation methods can result in split COGS values (for example, some quantities of the item at $62 and others at $59), and the system does not know which value you want to apply. If you need to adjust the Quantity field, please note the following:
- For items that are not serial tracked, we recommend that you use a weighted average as the restock value.
- For items that are serial tracked, you can go to the Serial inventory list (Operations > Inventory > Serial inventory) and display the Cost column on the list to help you determine a serial number's COGS (and thus, its restock value).

Editing an existing return

An existing return can be opened for viewing or editing by selecting its transaction reference number link in the Ref # column. You will need to enable editing line by line to make changes to the return if you use Transaction edit mode.

Be sure to save any changes you make.