Cancellations, returns and exchanges for sales fulfilled to drop-ship purchase orders

If you fulfill sales through drop-shipping, you may encounter situations where your customer needs to cancel, return or exchange an order which was fulfilled through a drop-ship purchase order.

The process is slightly different to cancelling, returning and exchanges items fulfilled through goods out notes. This article will go through how to handle them in Brightpearl.

Cancellations

Sales are cancelled before they have been shipped and invoiced.

If a sale is fulfilled to a drop-ship purchase order which has not yet been shipped, it is possible to cancel it.

To do so, you need to delete the associated drop-ship purchase order.

The drop-ship purchase order can be deleted as long as it has not been invoice, paid or marked as shipped.

  1. Go into the sale which needs to be cancelled. Click on the link in the product table to go to the linked purchase order.
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  2. Ensure the purchase order is unpaid, uninvoiced and unshipped.
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    • If the drop-ship purchase order has either been shipped or an invoice has been received against it, you will not be able to proceed with this step. Instead, follow the instructions for performing a return.
    • If the drop-ship purchase order has been paid, you can reverse the payment on the payment allocation screen or on the "View payments" screen.
  3. Click the arrow next to "Save changes" and click "Delete"
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  4. Click "OK" on the resulting popup
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  5. You'll be taken back to your purchase order list. If you look at the sale, you'll see it's now unfulfilled and can be cancelled as normal.
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Note: Make sure to alert your vendor that you have cancelled the purchase order!

Returns

If a customer has received an item and wishes to return it, one of three things may happen:

  1. The item is returned directly to the vendor
  2. The item is returned to you, and you return it to the vendor
  3. The item is returned to you, and you keep it

All three cases require a sales credit, but only the first two cases require a purchase credit. This is because in the first two situations, you are performing a purchase return in addition to the customer's sales return.

The table below summarizes how to handle each situation. Note that the 

Situation Sales credit Purchase credit Receive inventory into stock? Remove inventory from stock?
Returned directly to vendor Y Y N N
Returned to you, you return to vendor Y Y Y
Returned to you, you keep the inventory Y N Y N

The item is returned directly to the vendor

When an item is returned to the vendor, you will need to:

  1. Raise a sales credit in Brightpearl
    • Because you are not receiving the goods back, you should not receive the inventory on the credit. You may wish to raise the credit using a miscellaneous line item instead of entering the product's details to avoid inventory being received in accidentally.
    • Invoice the credit and mark it as refunded (if applicable)
    • Learn more about raising sales credits here
  2. Raise a purchase credit in Brightpearl
    • Clone the drop-ship purchase order to a purchase credit and treat it like an ordinary credit. There is no need to manually remove inventory as you did not receive the inventory to begin with.
    • Invoice the credit and mark it as refunded (if applicable)
    • Learn more about raising purchase credits here

The item is returned to you, then you return it to the vendor

When an item is returned to you, and you return it to the vendor, you will need to:

  1. Raise a sales credit in Brightpearl
  2. Raise a purchase credit in Brightpearl
    • Clone the drop-ship purchase order to a purchase credit and treat it like an ordinary credit. Manually remove the item that was received in on the sales credit created in the first step.
    • Invoice the credit and mark it as refunded (if applicable)
    • Learn more about raising purchase credits here

The item is returned to you, and you keep it

When an item is returned to you and you end up keeping it, you will need to raise a sales credit in Brightpearl.

Receive the inventory on the credit, as the customer sent the goods to you, then invoice the credit and mark it as refunded (if applicable).

Learn more about raising sales credits here.

Exchanges

Before the drop-ship purchase order has been marked shipped

If a customer wants to initiate an exchange before they have been shipped the item, simply delete the purchase order and amend the sale before fulfilling it again.

Make sure to inform your vendor you are cancelling the first purchase order.

After the drop-ship purchase order has been marked shipped

If the drop-ship purchase order has been marked as shipped, you will need to perform a return and then create a new sale as normal. Use the guidance above to understand how to process the return.

The trickiest thing will be how to handle the payment against the sales credit. You should use the same logic as when performing any exchange.

Learn more about exchanges here.

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