When a customer places a return or initiates an exchange, they will send the goods back to you. Returns or exchanges where the original order was shipped will always involve a sales credit.
Once the sales credit has been created, you can receive inventory items against the credit.
Note: All of the items on a credit must be received at once - it is not possible to part-receive credits.
Enter the sales credit and click Receive inventory.
A modal popup will appear, displaying three options:
- Make available for sale in warehouse
If the returned items are in perfect salable condition they can be received straight back into on hand inventory at the specified warehouse.
If warehouse locations are in use, the items will automatically be placed into the default location recorded on the product record (to use a different location they can be first placed in quarantine or they can be moved after receiving).
Receiving the items back into inventory will create an accounting journal to increase asset value by the price recorded on the cost price list assigned to the sales credit.
If there is no price on the price list the items will be recorded with a zero value, unless LOFI inventory accounting is enabled.
- Write-off items
This option can be used when the returned items cannot be re-sold.
Writing the items off means they are being disposed of.
Writing the items off will create two accounting journals. The first brings the items back into the business, and the second subtracts the value of the stock. The account where this value is posted is configured in Settings > Company > Accounting: Accounts (Nominal codes).
- Quarantine items
Quarantine is used for all other scenarios, or where a decision is yet to be made. Quarantined items are received back into the business but placed on-hold and not returned to normal inventory - the items cannot be sold. All quarantined items can be seen at Products > Inventory in Transit.
Placing items in quarantine will create an accounting journal to increase assets, but the items will not be added into on hand inventory until they are released from the "in transit" screen.
The items will be recorded with the value recorded on the cost price list assigned to the sales credit, unless LOFI inventory accounting is enabled. If there is no price on the price list the items will be recorded with zero value.
Learn more about handling quarantined inventory below.
Handling quarantined inventory
The value of quarantined items is included on the balance sheet, but the quantity is not included in available stock.
The items will need to be released back into stock before they can be re-sold, written-off or returned to vendors (suppliers).
- Releasing quarantined items back into inventory
Quarantined items are released from Products > Inventory in transit. They can be released in batches or one at a time. If warehouse locations are activated, the items will be placed into the default location recorded on the product record. If multiple concurrent locations are being used, items are placed into default locations when batch released or items can be placed one-by-one into any chosen location.
- Writing-off quarantined items
Even if you need to write off an item it must first be released back into stock. Having done so, it can be written-off using an inventory correction.
Returning items to the vendor (supplier)
Returning items to the vendor (supplier) is a separate process.
In order to return items to a vendor (supplier) both a purchase credit and an inventory correction are required. The purchase credit accounts for the refund from the vendor (supplier) and the inventory correction is used to remove the item from stock at the relevant cost value.
Note that is is not possible to add stock tracked items on to purchase orders and then ship them back to vendors (suppliers).
Selling "blemished" goods
If an item is returned but not suitable to be added back into normal "new" stock at its ordinal value it might still be suitable for sale as a "blemished" item.
In this case the item should be recorded in Brightpearl with a different SKU from the original "new" item and (normally) with a lower asset value.
In this scenario the sales credit should be edited - removing the original SKU and adding the "blemished" item SKU which is then received into stock instead.
Changing asset values
All items are received into stock with the value recorded on the cost price list which is assigned to the sales credit, even if this is zero, unless LOFI inventory accounting is enabled.
If this is not a true valuation of the items the value can be edited from the Inventory Detail report.
Unreceiving stock from a sales credit
If none of the items on the sales credit have sold, it is possible to delete the batch to unreceive everything from the credit.
To do so go to Products > Inventory detail and click 'Show filter'.
Search for the SC# in the 'PO Ref' field:
Then click the 'X' in the 'Actions' column to delete the batch.
Note this can only be done if all of the items received on the credit are still on hand, and it will remove all inventory associated with the credit.