Entering Purchase Order Returns with Service Calls

You can perform purchase order returns for purchase orders that contain Service Management costs. This feature supports PO returns with and without credit, batch and transaction-level posting. This feature does not support the processing of returns against inventory transactions, as those can be performed using the current alternate Inventory Transaction Entry window.

• When a returned purchase order that contains Service items is processed, those items are reversed on the job or open service call.
• Taxes on PO returns will update per the Suppress PO line item tax update to Job Cost and Service Management option in setup. If this option is turned on, taxes are not included in the total costs.
• If you have Allow Posting Invoices with Actual and Committed Costs and Create COGS Distribution for Invoices marked in Invoice Options, when a purchase order is returned, a transaction is created to reverse the costs and billable amount of the PO for the returned quantity. If the service call or job is closed, it will be reopened to allow you to post this transaction.

A purchase order must be committed and received before you can enter a return for that PO.

Purchase Order Return Process: A Quick Review

The PO return process works as follows.

Shipment Only

• Create and save purchase order. PO status is NEW.
• Receive and post the shipment. PO status is RECEIVED.
• Create purchase order return. PO status remains RECEIVED. If a replacement item will be shipped, you can edit the purchase order and change the status to CHANGE ORDER. Then you could add the replacement item right on the original purchase order.

Shipment with Invoice

1. Create and save a purchase order. PO status is NEW.
2. Receive shipment/invoice. POS status is CLOSED
3. Create purchase order return. PO status remains CLOSED.
4. Post credit transaction to Payables Management. If a replacement item will be shipped, you can edit the purchase order and change the status to CHANGE ORDER. Then you could add the replacement item right on the original purchase order. When you view the PO, both line items will be CLOSED.

Returning a Purchase Order Item

You create a PO return as you normally would except that you can now view jobs and service calls associated with the return. For costs to be updated on a service call, that call must be open. Otherwise, the cost will update the purchase price variance account defined for Purchasing.

1. Select Transactions > Purchasing > Returns Transaction Entry. The Returns Transaction Entry window opens.
2. Select a return Type. You must select either Return or Return W/Credit. Tab through to fill the Return No.
3. Complete the remaining fields, as necessary.
   • Vendor Doc. No.
     The number identifying the document that the vendor gave you; typically this is the invoice number or packing slip number from the vendor's documents. You can leave this field blank if you're entering a return without credit.
   • Date
     The date the item is to be returned. The system date fills automatically.
   • Batch ID
     The batch associated with this purchase order, if applicable.
   • Vendor ID and Name
     The vendor associated with the item being returned.
   • Currency ID
     The currency ID of the returned item fills automatically.
   • PO Number
     The purchase order number to which the returned item belongs.
   • Vendor Item
     The item being returned.
   • Receipt No.
     The receipt number associated with this returned item.
   • U of M
     Displays the unit of measure for the item being returned.
   • Quantity Returned
     The quantity to return. This field fills automatically with the maximum quantity available from the receipt.
   • Unit Cost
     Displays the cost of the item in the unit of measure. For additional information on the fields listed above, refer to the Microsoft Dynamics GP documentation.
4. Tab to the next line. You can now view the jobs and/or service call associated with this returned item. See Viewing Service Call Information for a PO Return below.
5. Save or post the transaction.

If a return transaction results in a net $0.00 cost for the PO line item and you are using a price matrix where the first row begins with Starting Cost of $.01 or higher (see example below), you will receive an error because the system will not be able to calculate the extended markup for $0.00. To avoid this error, you should change the starting cost in the first row of the price matrix to $0.00. An example appears below:

Viewing Service Call Information for a PO Return

1. Select Extras > Additional > Signature PO Return.
2. Select OK to close the window.

Viewing Updated Costs in Service Management

When a PO return has been posted, the appropriate costs are updated in Service Management. 

To view updated costs in Service Management because of a PO return:

1. Select Cards > Service Management > Service Manager.
2. Select the customer, and select the History indicator.
3. Select a service call, then select Invoice.

4. Double-click the invoice that contains the returned item(s). If the service call type was MCC, the Maintenance Costs window opens. 

   

   The returned PO items appear as a negative number if the invoice was posted, the service call re-opened to perform the return.

5. You can zoom on the cost category, then zoom on the transaction to view additional information about the returned items, including the adjustment to costs.