Let’s walk through an example of using a Sales Return Order to return and replace an item.
In this scenario, the customer is on the phone indicating that one of the Whiteboards they received is damaged and have requested a replacement.
First, we create the Sales Return Order. Go To Departments > Sales & Marketing > Order Processing > Sales Return Orders.
Click ‘New’ to enter a new record and enter the ‘Customer’.
Select ‘Get Posted Document Lines to Reverse’ from the Home tab of the ribbon.
Select the line or lines to reverse by pressing and holding the Ctrl button and selecting all lines to return. In this case, the customer is requesting to return the Whiteboard, base.
The order for the Whiteboards went out on 3 shipments. Only 1 from the third shipment is damaged. Select lines and right click and select ‘Delete Line’ to delete any lines that are not relevant and update the ‘Quantity’. In this case, only one is to be returned.
Here is the updated Sales Return Order indicating they are returning only 1.
Enter a ‘Return Reason Code’ on the line that matches with the reason why the customer is reporting they are returning the item.
Give the customer the Sales Return Order No. and ask them to mark their package with this number so the warehouse will be able to associated the package with the Sales Return Order once it arrives at the warehouse.
Alternatively, you can change the No. Series associated with Sales Return Orders to start with RMA in the No. Series for the Sales Return Order if desired.
The Customer wants a replacement so we enter a new line for the Whiteboard with a negative Quantity.
We can either ship the replacement now, or wait until the return item is received.
We are going to ship out the replacement now so we click on the ‘Actions’ tab and select ‘Move Negative Lines’.
A message will pop up telling you the Sales Order No. created and will ask you if you want to view the Sales Order.
Click on ‘Release’ on the Home tab of the ribbon to let the warehouse know the order is ready to ship.
Click on ‘OK’.
You will see this message. Click ‘Yes’.
The warehouse and accounting staff can then ship and invoice the new sales order.
When the warehouse receives the return package, they can pull up the Sales Return Order and if needed, update the ‘Return Quantity to Receive’ on the line and click on ‘Post’ in the ribbon.
Click on ‘Receive’ and then click on ‘OK’.
Now the item can be examined and if it is determined to be damaged, your Accounting staff can update the ‘Qty. To Invoice’ and select ‘Post’ again and choose ‘Invoice’ and click ‘OK’.
This will post the credit to the customer for the returned item.
If you fill in the ‘Applies-to Doc. Type’ with ‘Invoice’ and ‘Applies-to Doc. No.’ of Posted Sales Invoice where you sent the replacement on the Invoice Details tab of the Sales Return Order BEFORE posting, the credit memo and invoice will automatically apply to each other.
You can select ‘Receive and Invoice’ in one step if this is the way your company operates. Separating the receive and invoice processes allows you do separate the receipt and credit issue processes.
When you invoice, NAV will pop up the following message:
If you click ‘Yes’, you will see the Posted Sales Credit Memo.
You will still need to apply the Credit Memo to the Invoice in the Customer Ledger Entries if you did not fill in the ‘Applies-to Doc Type” and ‘Applies-to Doc No.’ before invoicing the Sales Return Order.