Version 2010 Close-up -- PO Returns!

After many long years, one of the biggest headaches of the PO receiving process has been fixed.  In Version 2010 of Dynamics GP, users can return items received on a PO and reinstate the item on the open purchase order!

People just make mistakes.  It cannot be stopped. In the receiving dock, a clerk picks up a PO with item XYZ on it and receives that item only to discover later another box with the correct number of parts it it.  They used the wrong PO for the wrong shipment.  Why can't we just reverse the receipt.

In Version 2010 you can, with some restrictions.

The first thing we notice when opening the Returns Transaction Entry window are two new check boxes on the right side of the header area: Replace Returned Goods and Invoice Expected for Returned Goods.

The four different return type codes are still present. When Return with Credit or Inventory with Credit are selected the Invoice Expected for Returned Goods is automatically marked and the field disabled. When these two return types are selected, only items received using a Shipment /Invoice Receipt Type can be entered on the return document.

Checking the Replace Returned Goods box tells the software that the Vendor is expected to replace the goods being returned and is expected to use the same original PO. Thus, the quantity received is reduced and the quantity on order is increased on the original PO, assuming the original PO is still open.

Users still need to determine whether to use a Return type return or an Inventory type return. (Why MS does this we will never know. It is a major issue with every user.) Here is what you need to know to select the correct type:

When a receipt is entered from a PO, a record is created in the IV10200 table. It lists the PO number, the quantity received, and the quantity consumed (which is set to zero). As parts are used (either using FIFO or LIFO as set in the Inventory Item Card), the quantity consumed is increased until it equals the quantity received.

Return transaction Types must have a quantity available to return in a record in the IV10200 table that is associated with a PO. (more in a minute).

When items are used, they are taken out of inventory. When they are returned to inventory (an SOP document, a manufacturing reverse pick, an inventory count adjustment), a record is created in the IV10200 table very much like the records created during the PO receiving process. The difference is that a PO Receiving number is not recorded in the record.

Inventory transaction Types must have a quantity available to return in a record in the IV10200 table that is NOT associated with a PO. Users cannot return PO receipts on an Inventory transaction type and they cannot return non-PO receipts on a Return transaction type.

So, if a receiving clerk goofs on a receipt, it can immediately be reversed and the PO is reinstated.  The correct receipt can then be recorded.  This will take care of 80% of the issues with returns.  For the remaining 20%, we still must think.

For more information on Version 2010, check out our Version 2010 - Closeups page.

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