In this post, we will walk you through return purchase order/ Vendor return in AX 2012. Many times company want to return goods which they have received from vendor due to various reasons such as damaged product, Expired product, Wrong product etc.
In order to return goods to vendor, we create a return purchase order in AX 2012.
There are two ways to create Vendor return in AX 2012:
1. Create purchase order with negative quantity
It is useful when there is no reference to specific purchase order or Return merchandise authorization is not required. In other word, company can return any item to vendor without any negotiation or notification.
This process is same as normal purchase order process with negative quantity.
2. Create a return purchase order.
Return order is created in reference to specific purchase order and it should be authorized by vendor i.e. vendor should provide RMA number which indicates the permit for return of goods to vendor.
Purchase order should already be created and invoiced in order to create a return order for it.
Let's assume that the inventory manager accidently found some items are damaged. He notifies the purchasing manager about the issue. Purchasing manager decides to return the damaged items to the vendor. Purchasing manager creates a return purchase order to facilitate return of goods to vendor.
Steps to create return purchase order
1. Go to Account payable --> Common --> Purchase orders --> All purchase orders.
2. Click on Purchase order button to create new purchase order.
a. Vendor account number: It is the same vendor to whom we are returning goods.
b. Purchase type:Select purchase type as "Returned order".
c. RMA number:As soon as we select purchase type as returned order, we can see RMA number field appears in the form. Enter the RMA number received from the vendor which permits the return of goods to vendor.
d .Enter other details as per requirement.
5. Now we need to add lines in the order which we can do it manually or with the help of credit note.
Add lines through Credit note
6. Go to Purchase order form-->click on purchase order lines--> Click on credit note
or Go to purchase order form-->go to purchase fast tab--> click on credit note.
7. Select the appropriate purchase orders and their lines.
Note:We can select multiple purchase orders and their specific lines to get them in return purchase order. Purchase orders specific to vendor selected in the return purchase order can only be seen in credit note form.
8. Click ok to get the lines in return purchase order.
9.Here you can see line in the return purchase order with negative quantity.
10. Post the Return purchase order confirmation after verifying all the details.
11. Post the receipt list for the items in the return purchase order.
12.The status of the inventory transactions goes to Physical reserved i.e. items will get physically reserved in the warehouse to get it picked for return.
13.Unfortunately, it is impossible to create a picking task for a purchase order line (or for an output order that can be created for the purchase order line). So, we cannot use the Picking form (Inventory management > Common Forms > Picking routes). We assume that the Purchase Manager calls the Warehouse Worker and asks him to perform the picking task: pick the broken items from a specific location, transfer the broken items to the outbound location, and inform the Purchase Manager about the operation being completed. The Warehouse Worker receives this in an informal form from the Purchase Manager, because we can't create the picking instruction document in Microsoft Dynamics AX for the returned items. When the Warehouse Worker completes the picking task and informs the Purchase Manager, she or he does the following: in the lines area of the Purchase order form, click the Update line --> Pick button.
14. Click on Add picking list update button to get the items available for picking list update.
15. Click on Register all to update the picked item in the system.
.16.Once done,Issue status goes to "Picked".
17. We can see inventory transactions status is updated from "Reserved physical" to "Picked".
18,We assume that the items are loaded to the truck and delivered to the vendor. When the items are delivered, the Purchase Manager posts, prints, and sends the Packing slip document for the vendor to sign. The Packing slip document is a guarantee that the vendor receives the broken items.
19. Go to purchase order --> Receive fast tab--> Click on product receipt.
20. Enter the product receipt number.
21.Click ok to post the product receipt which is then send for the vendor to sign.
22. Once done, we can see inventory transactions status is updated from "Picked" to "Deducted" as the items are deducted from the warehouse.
23.The Purchase Manager posts, prints, and sends the invoice document for the vendor to sign. This document confirms that the vendor must pay (return) some amount of money for the broken items.
24. Go to purchase order -->Invoice tab--> Click on Invoice button to post the invoice for the order.
25. Enter the invoice number and click on Post button to post the invoice for the order.
26. Once done, invoice will send to vendor for signature. It confirms that the vendor must pay for broken items.
27. Go to inventory--> Transactions-->The status is updated from "Deducted" to "Sold"
Note:The invoice document which is generated has the title "Credit note". To view the credit note report, go to purchase order form-->go to Invoice tab--> Click on invoice journal-->click on Preview/Print -->Click on original preview/Copy preview.