D365 | SCM | Advanced Warehouse Management |Reverse Logistics - Customer Returns | Part 2

Hello Folks,

Hope you all are doing great!

In this blog, I will discuss one of the most talked about topics?"Reverse Logistics – Sales Return Using Warehouse Mobile Device".

Reverse Logistics Flow

“The process of planning, implementing, and controlling the efficient, cost-effective flow of raw materials, in-process inventory, finished goods and related information from the point of consumption to the point of origin for the purpose of recapturing value or proper disposal.”

Here is the typical Business Process flow for the Customer Return.

Don't worry, You are landed at the right place, here is scenario 2

Scenario 2 – Disposition Code “Credit” – Return Order Receiving and Put Away – Purchase Return

In this scenario, we will see the process of items returned from the customers will be "Credited" and finally this item will be returned back to the vendor.

Prerequisite Setups

• Return disposition code
• Disposition code
• Create a mobile device menu item
• Create work template
• Create location directives

Create Return Disposition Code

Create the return disposition code for the following Action

1. Credit: Items will be returned to the inventory and the customer will be credited.
2. Scrap: The returned items will be scraped and the customer will be credited.
3. Replace and credit: The returned items will be transferred to the inventory, create a replacement order for the returned items, and credit the customer.
4. Replace and scrap: Scrap the returned items, create a replacement order for the returned items, and credit the customer.
5. Return to the customer: Reject the returned item and return it to the customer.

Create Disposition Code

I have created two disposition codes RMA Scrap and RMA Credit.

Create Work Template for "Return Order"

I have created a working template for the work order type "Return orders"

Create Location Directive for "Return Order"

The location directive is created for the disposition code "RMAScrap". This will direct the receiver to put away the items to the Customer return zone.

Click edit query and mention the Zone ID "CustRet" for the customer return.

e location directive is created for the disposition code "RMACredit". This will direct the receiver to put away the items to the Customer return zone.

Create Mobile Device Menu Item

I have created one menu item for Customer Return with the work creation policy "Return order receiving and put away". This menu item will help us to register the items at the "Inbound" location and putaway at the "Customer return" location.

Step by Step Process

Create a Returned Order

Go to the sales and marketing module and create a return order.

Navigation:?Sales and marketing > Sales Returns > All Return Orders> All Return Orders.

The user will select the particular sales order for the return order. We can select the complete sales order or a single item.

In the below screenshot I have selected one item 4427.

log in to Warehouse Mobile Device

• Login to the warehouse mobile device and select the menu item “Customer Return”. Scan or manually enter the RMA number to proceed.

• Enter the RMA number and press OK

• Scan or enter the Item
• Scan or enter the license plate
• Enter the quantity
• Select the disposition code “Scrap”

• Press Ok, and the system will assign the batch number to the item automatically.
• Press the Ok button to complete the process.

The mobile device will guide the user to put away the items at the "Customer Return" location "CR01".

Press ok.

Work Status "Closed"

The system has closed the work for the work order type "Return Order". Items are moved from Inbound to the CR01 location. Below is the screenshot

Navigation: Warehouse Management > Work > All Work?

Post The Packing Slip From Return Order

• Generate and process the packing slip from the returned order.

a.???Packing Slip Voucher

At the time of packing slip posting, the system will create the packing slip voucher.

Packing slip inventory is debited, and the accrued receivable is credited.

• Debit: Packing slip inventory is debited
• Credit: Accrued receivable is credited

Below is the screenshot for the Packing slip voucher

Inventory Transaction Status “Received”

Once the packing slip has been posted the inventory transaction status will be as received below is the screenshot for reference:

Sales Order Type “Returned Order”

The system will create a new sales order with the order type “Returned order” this sales order will be created with negative quantity and price.

Since it's a return order, the sales order is created with a negative quantity and the net amount. Invoice the sales order.

Invoice Voucher

At the time of invoicing, the system will reverse the packing slip voucher.

Packing slip inventory is credited, and the accrued receivable is debited against the returned items.

• Debit: Accrued receivable is debited
• Credit: Packing slip inventory is credited

Sales reverse, inter-company customer balance is reduced:

• Debit: Sales accessories are debited
• Credit: Accounts receivable intercompany trading is credited

Inventory is returned by the customer in the warehouse, cost of goods sold is reversed:

• Debit: Inventory accessories debited
• Credit: COGS accessories credited

Below is the screenshot of the invoice voucher

1.??Generate?Purchase Return Order from Return order

It's possible to generate the "Purchase return order" from the "Return order" form. Below is the screenshot.

Click on "Purchase return order"

Select the line and press OK, if required business users can modify the quantity for the purchase return.

Purchase Order Type “Purchase Return”

?Go to “All purchase orders”, and the system has created a new purchase order with negative quantity and amount.

Now the user will proceed with confirmation of PO and product receipt and invoice to complete the process for purchase order type return order.

Once the Purchase order credit note will be posted, the following voucher entries will be created by the system:

• Debit: Accounts payables will be debited
• Credit: Inventory will be credited

Final Settlement

There are two options for the Customer final settlement

Option 1: Businesses will approve and refund the cash to customer against the returned items.

Option 2: Businesses will create a replacement order for the same customers.

Conclusion & Recommendations

• The reverse logistics process will be triggered by the customer. After the approval, the return order will be created in the system.
• The customer can generate the return order from the eCommerce engine.
• It's possible to process the return order from the warehouse mobile device. The return orders will be registered at the inbound location. The initial quality check will be performed by the quality inspector. Based on location directive setups, the returned items will be moved to the customer return location.

I hope you like the article, keep connected and?Walk the Talk.

Feel free to share your feedback in the comments section.?

Truly Yours,

Ali Danish?

ERP Microsoft D365FO Solution Architect | Corporate Trainer

M: +971554912688