Credit without returning inventory to stock

tpopowicz

I'm having some problems finding information on this. In a system I used to use, we could do a credit using the item number and choose to either return to stock, or not return to stock, scraping the item at the customer site. In Navision I have found that you can use Inventory Value Zero with the return orders module, but this would still create a quantity adjustment at zero cost. I saw someone suggested to put this quantity into a scrap location to separate it from my available qty on hand, but I still need to do something with the quantity. Also, creating this type of transaction also changes my average cost. I can do an inventory adjustment monthly to remove the qty from scrap location, but this item journal transaction puts a cost in, even if I blank them out in the journal. It also adjusted my average cost to zero after posting the journal. This seems like a pretty basic function, is what I looking for available at all in Navision?

ssingla

You can create credit memo with charge item if you do not want the inventory transaction.

tpopowicz

So with doing this, I need to create an item in item charges for every part number I sell, is that correct? and does this affect my cost in my part in the item table? And can I do a credit against an item without applying it to a particular invoice? how do I track back what items a customer has been credit for through item charges? looks like I would need to make a new screen, like the one in customer card, sales button, return order, but for credit memos, I don't see a screen anywhere that lists this info.

themave

My approach would be to set up a return reason code called, defective

make it inventory value zero and default location "SCRAP"

do your credit and enter on the line the return reason, this will bring the item back into the scrap location inventory at zero value.

Then once a month or so, run a physical inventory journal on the "SCRAP" location, and zero out the counted qty, post the journal. all items will be out of inventory. You will have a record of all defective items, the customer will be credited for the correct item, and your inventory will be correct.

this is not ideal but it will give you the detail on what parts have been credited, what was scrapped, ect. and is standard functionality.

tpopowicz

I've tested using the item charge, and this seems to work, but I have to dig down to the value entry to find out what the customer was credited for. It didn't seem as though this transaction affected the cost on my item, which is good. I could make a new screen displaying this information per customer.

I've also tested doing it with the return reason code, and my issus with that is the cost of the item is that when I adjust the stock out using either an item journal or phy inventory journal, even if I blank out the costs, an actual cost get posted into the ledger entry, and my average cost goes to zero on the item.

tpopowicz

I also found that item charges deals with shipment lines, and we don't use the standard shipment tables in navision, we have a custom modification for this, so when I go to view my item charge assignment, my invoices aren't available (I have just a few in there from when we went live that I could test with). Any ideas with the actual cost posting in the phy inventory adjustment? and my average cost being set to zero?

ssingla

What is you average cost calculation type. Is it by Item or Item,Variant, Location.

If it is later than u can post the receipt of the material in seprate location with value as zero. It will not effect the average cost of aother locations.

Alex_Chow

An alternative method is to use Resources. The affect in G/L would just be A/R and Sales.

Savatage

themave wrote:

Then once a month or so, run a physical inventory journal on the "SCRAP" location, and zero out the counted qty, post the journal. all items will be out of inventory. You will have a record of all defective items, the customer will be credited for the correct item, and your inventory will be correct.

Don't forget that if you do use another location (we do too)
Locations:
Active & Damaged

that the system treats the merch in Damaged as good stuff and if you run an inv valuation don't forget to filter on the location so not to pick up the damaged/scraped stuff.

This also holds true for the item card the Qty on Hand - you have to add a flowfilter to show your actual inv on hand.
(we created another Actual Qty On Hand field where the filter is part of the flowfield just to be safe)

But if you never wipe out the inv in damaged/scrap - it will grow forever until you do.

It was a major headache until we started deleting the entries as we should have every month - except we never did for 3 years :oops:
http://www.mibuso.com/forum/viewtopic.php?t=11853

Now everything is working great

Savatage

themave wrote:

Then once a month or so, run a physical inventory journal on the "SCRAP" location, and zero out the counted qty, post the journal.

This is brilliant

You know I never thought of that. I created a report that put out a txt file and I created a dataport to import the txt file into the item journal, then posted.

Boy do I feel dumb :oops: :oops:

cveale

I know this post is 3 years old but I have one question.

I am using NAV 5.0 SP1.

I am thinking of going the route of creating a location for 'scrap / warranty'.

So when i process the credit memo / return order, I want to make sure the Unit Price defaults in so the customer gets their credit, and i want to zero out the UNIT COST ($) field correct? This way it will go into my 'scrap / warranty' location at zero cost, and at the end of the month I can do an adjustment to get rid of quantity from my scrap / warranty location.

Unless there is something new in 5,0 SP1 that I don't know about.