Return Orders Vs. Credit Memos.

Deep

Hi All.

There are Credit Memos as well as Return orders in Navision.
When I run these, I can see that both are same and are hitting the same tables with same values.

So, can you please tell me when actually they are used. Or to be specific, what can be the specific cases where we use only a Return Order only or a Credit Memo only.

Please help.
](*,)

Alex_Chow

Return orders are for issuing return authorizations.

Credit memos are for issuing credits.

They both do the same thing, but return orders breaks the receive and invoice into separate processes.

Deep

Alex Chow wrote:

Return orders are for issuing return authorizations.

What does "return authorization" implies??

Alex_Chow

It means you give authorization for the customer to return the stuff back to you. You usually give them an RA or RMA number.

Buy something from Amazon.com and try to return it if you want to see it live in action on how return authroizations work.

Deep

Thanks a lot Alex.


I got it.

AdamRoue

A return order also allows this to be handled in two stage, issue an RMA number to the customer and then receive the stock in, the credit can be issued months after the receipt of stockonce all aspects are checked, but the value is seen in your inventory the monent it comes in. With a credit note the stock and the credit are issued in one step and cannot be separated.

From a return order you also have the function to create return related documentation automatically like the replacement sales order, return to vendor order and replacement purchase order.

ara3n

Also one more thing I want to add is that.
Return order works with warehouse management, where as Credit memo does not.

So if you are using warehouse management and the warehouse guy receives the goods, you'll need to create return order.


It's the same thing as Sales Order, and Sales Invoice difference.