This article will take you through on how to process a Vendor Return for Parts and also how to report on Vendor Returns





There are two steps to processing a Vendor Return 


  • Processing the return itself (Part Return)


  • Processing the Vendor issued Credit Note against the Vendor Return  (Return Credit)


It is a two step process because you may have multiple Vendor Returns that are attached to one Vendor Credit Note or one Vendor Credit Note for multiple Vendor Returns



Step 1 - Processing the Part Returns


This action would be required if you are returning parts to the Vendor 


You must ensure that you have adequate available stock on hand for the relevant parts you wish to process a Vendor Return for as Blackpurl will not allow the dealership to process a Vendor Return if there is not enough stock on hand for the relevant parts

  1. From the Blackpurl Header > Click User-added image >

  


  1. The Select a Vendor window will allow the search of the relevant Vendor:
User-added image

As you type your search keyword, the system will start listing the search results that match

In our example we are looking for the Vendor Smith and Co, we type in smith as the keyword > click on your Vendor name to select
User-added image


After selecting your Vendor, the system will automatically open the Vendor Return screen and add the Vendor's details to it

 The user can then fill out the top half of the Return VO ie Reason / Tracking # / RMA# etc



  1. There is now two options to add parts to this Vendor Return:
  • Returning Parts to the same Vendor as listed on the Parts Record.  If so, click > User-added image
OR


  • Returning Parts to a different Vendor then what is listed on the Parts Record.  If so, click > User-added image

Select the option that is relevant

Both options will take you to the Search to Add field for you to start searching for the parts to add to this Vendor Return

  


  1. In our example we are returning Part#1234ABC Brake Pad x 2 to the Vendor as per the Part Records so we click on User-added imageand in the Search to Add field, search for the relevant part > click to select


User-added image


Please remember that for the part you are selecting, there needs to be Available Stock on Hand in order to do a Vendor Return


The system will then add the part to the RETURN section of the Vendor Return

Type in the RETURN QTY and change the ITEM COST (if applicable)

User-added image


If you have other parts to return to this Vendor on this Vendor Return, complete Step 3 and 4 again

  

  1. Currently the status of the Vendor Return is In Progress

In Progress status means that line items can be added, modified or removed and that on the Part Record the quantities will show as committed, making them no longer available to sell


  1. If you have submitted your Vendor Return request to the Vendor > Click onUser-added image
This will change the status to Submitted

In the Submitted status, line items can no longer be added to this Vendor Return

However users are still able to modify quantities / cost or remove any line item altogether


  1. Once the Vendor has approved the Vendor Return and provided you with a Return Merchandise Authorization (RMA) number, enter the number in the RMA# field in the Info section of the Vendor Return and then click on User-added image

  

User-added image


This will change the status to Approved

Approved status means that line items can no longer be removed and only the line items cost can be altered

When set to this status, the in stock quantity for the relevant Parts has now reduced by the quantity sent back and Blackpurl will use the RMA# as the reference number on the Cost Tracking Activities on the part record

Dealerships with Accounting Integration: 
  • It is also at this point the accounting integration journals will be generated to the accounting software

  • Debit - Inventory Accrual account (dealership is still waiting for a credit memo from the Vendor so until the Vendor Credit Note is received, the entry will sit in this clearing account)


  • Credit - relevant Inventory account (dealership is returning goods so reducing your inventory value)


Step 2 - Processing the Return Credits 


  1. Once you receive the Vendor's Credit Note , then the user will need to process the Return Credit


Click Order >



  1. The Select a Vendor window will allow the search of the relevant Vendor:
User-added image

As you type your search keyword, the system will start listing the search results that match

In our example we are looking for the Vendor Smith and Co, we type in smith as the keyword > click on your Vendor name to select
User-added image


After selecting your Vendor, the system will automatically open the Return Credit screen and add the Vendor's details to it


It will also allow the user to add the Credit Memo # and also select which Vendor Returns the user wants to be part of this Return Credit  




2.  Once you have selected which Vendor Returns this Credit Memo is for, it will then list the line items on
that Vendor Return for them to confirm which lines and cost of each line that will be credited 
Add any other charges that are getting credited by clicking on  and searching for the relevant other charges ie Freight as it may be the case that the Vendor is refunding the freight to the Dealership as well



If the Vendor is charging the Dealership a restocking fee - you can add this in at this section as a negative value 



3.  Check all your figures and items to ensure that the Blackpurl Credit Memo total and the hard copy of 

Vendor Credit Memo match and then click on



The status of this Vendor Return is now Credited

This means that the line items can no longer be modified or removed and that the dealership has received and processed the Credit Memo from the Vendor with the final cost values now confirmed



Dealerships with Accounting Integration:
  • Once the status is Credited, the relevant entries will be processed into the accounting software ie Vendor Accounts Payable document (Credit Note)


  • Debit - Accounts Payable for the Vendor's Credit Note


  • Credit - Inventory Accrual account  (This account should go back to zero as it is a clearing account only)




How to Report on Vendor Returns

 


It may become necessary to run a report to show a list of Vendor Returns


By running this report on a regular basis you can ensure that your Dealership is process / finalising and received all relevant documentation ie Vendor Credit Notes in a timely manner


  1. From the Blackpurl Header > Reporting > Reports - Common Search > All Vendor Orders


User-added image


  1. As we only want a report on Vendor Returns, we need to change the parameters to suit
To change the parameters > click on User-added image and in the Contains filter, type in RTN

User-added image



  1. Once you have changed the parameters to suit click on User-added image to generate the report


User-added image
If you want to change the columns - click on User-added imageand select or deselect the columns
If you want to report on totals - click on User-added image
If you want to export or print the report - User-added image
If you are happy with the layout of the report and want to use it next time - click on User-added image