Customer returns

Version Relevance: All versions

Issue: We often sell multi-level "kits" of parts to Customers. However, our customers still want to return lower-level parts for warranty repair etc. if they are found to be faulty. We seem to only be able to process a customer return/raise a credit/complex return etc. from the original SO top level part, rather than drill down into the BOM and pick the lower level items that make up the kit. Is there a way to process these types of returns at the lower level?

Jan 16th, 2006

Feedback: The short answer is no - only complete kits can be returned. When you sell a kit, it is the kit that goes in to sales history, not the components; so when you return the kit, the sales history is updated with a complete returned kit and the component inventory status is updated.

It is probably best to handle these with Stock Control - General Returns, and create NCRs manually if required. As your credit notes come off Sage anyway, this shouldn't cause too many problems.

An alternative may be to temporarily return the whole kit and put it all on back-order, then immediately re-dispatch the good items, leaving the defective items as shortages. They can be then be shipped once repaired.

Paul Wilson - Caliach Consultant

Issue: The alternative that you suggest is a good option, and one that I shall explore.

The particular kit I am referring to has 7 sub-level components, and we average 80 per month, in weekly deliveries. My only immediate thought on this alternative, is will it reflect badly on our monthly delivery performance figures?

Jan 16th, 2006

Feedback: Yes of course, and it should! If items are being returned for credit, then until they are re-dispatched they are effectively negative sales, so do affect your invoiced value for the month of the return.

The invoiced value will only be affected by the value of the kit that doesn't immediately get re-dispatched, i.e. the remaining defective items. But for sales dispatch performance analysis, as the whole kit has been returned it is a 100% return - as indeed it should be, because a kit is usually no good without all it's parts!

Paul Wilson - Caliach Consultant