Inventory Returns

[aodAN]

We recently started using the Return feature within the inventory module and noticed that quantities are not removed from on-hand when you mark the Return as sent, but rather not until it has been marked as Credit Received.  Is this accurate?  It would be more accurate to have the quantities removed when returned.  Receiving the credit should have no impact.  Similar to how a PO receipt increases quantities, not the recording of the bill.

[aodAN]

Shouldn’t it work in the same way POs do?  A Receipt brings quantity in and the Bill gets recorded separately.  With a Return wouldn’t the same hold true for the Return to remove quantity and the credit get recorded separately?  We don’t currently integrate with QB so perhaps there is a piece that I am missing in this.

[Jeremy_Wick]

Hi @aodAN, this is expected behavior, one reason is so that you can track outstanding returns within ST and not have to manually track them.  Another reason is to prevent differences in Inventory Quantities between your Accounting Software and ST Inventory Module.  If the item is removed from inventory when the Return is made ST will show a difference in Qty, as only when the credit is received will it be able to export to accounting.

The status' for returns: Pending - We have created the return but have not yet actually returned the items to the vendor, Returned - We have returned the items to the Vendor and are awaiting the Credit Memo, Credit Received - The vendor has approved the return and has now issued the credit memo.

[lisas_jo]

Yes, but the actual reduction of quantity on hand in the inventory location is defaulting to the date that the credit memo was entered in ST, while Intacct will reduce the quantity on hand based on date of credit memo, creating a variance in QOH between the 2 systems when cross-comparing.  This is especially problematic at EOM or EOY when running report out of ST to substantiate the balance sheet inventory valuation.

[LBabayan]

Hi @aodAN, thank you for posting your question. I believe this is the expected behavior but let's also see if one of our Inventory experts @Jeremy_Wick can provide more insight on the Return feature.