Build: 2_1134
Build date:  31-Jan-18

A new supplier return management feature tracks items that you return to a supplier for replacement or reimbursement, such as defective items, using the accounts receivable system. When a supplier is set up with this feature, and you process a credit purchase order (credit PO), Paladin Point of Sale will do the following:

  • Add an accounts receivable (A/R) amount equal to the returned item cost to the supplier’s account. Supplier accounts are created and associated with suppliers during the setup process (see detailed steps below).A/R invoice created
  • Optional: Automatically create a purchase order to receive the replacement items. This feature is useful when you return items to a supplier for repair or replacement.Auto-generated replacement PO
  • Show the total increase in A/R from credit purchase orders on the Comparative Revenue Report. This new value is named Credit PO to A/R.Credit PO to AR value on Comparative Revenue Report
  • Show the suppler A/R history in the Transaction Report.ROA Credit PO on Transaction Report

You can reconcile the outstanding supplier A/R in these ways:

  • If the supplier sends you repaired or replacement items, recall the replacement PO or create one, and then process it to add the items to your inventory. The supplier’s A/R will be credited for the purchase order amount.
  • If no items are returned and you receive a monetary reimbursement, apply it to the supplier account as an account payment. If a replacement purchase order was created, delete it.

How it works

In this example, the supplier is named Supplier 1.

How to set up supplier return management using accounts receivable and replacement purchase orders

  1. Decide which suppliers will have this feature.
    Note: The following steps will only apply to these suppliers.
  2. For each supplier, create a customer account.
    Note: When you create the customer account, make sure that you set a credit limit that is large enough to accommodate the supplier’s potential credit PO total.

    • For help, see How to add a customer account
  3. On the File menu, click Setup.
  4. Click the Company tab.
  5. In the Purchase Orders pane, select the Force Credit PO Balance to A/R checkbox.
  6. Optional: To create a replacement purchase order for every credit purchase order, select Automatically Re-order AR Credit POs checkbox.
  7. Click the Supplier tab.
  8. Attach the suppliers to their customer account:
    1. Highlight the supplier.
    2. In the Associated Customer Account box, all or part of the customer account name, and then press Enter.
    3. In the Advanced Lookup window, highlight the customer that is associated with this supplier, and then click Select Customer or press F8.
    4. At the bottom of the tab, click Save.
    5. Repeat steps a-d for every supplier that you chose in step 1.
  9. Scroll down to the bottom of the window, click Save, and then click Close.

How to create an accounts receivable entry for a supplier return

  1. If you have not set up this feature, follow the instruction in: How to set up supplier return management using accounts receivable and replacement purchase orders
  2. Click the PO module or press ALT + 4.
  3. In the Supplier list, select the supplier.
  4. Add the returned items to the invoice and enter the returned Quantity as a negative number.
  5. On the bottom ribbon, click Confirm PO.
  6. On the bottom ribbon, click Buy.
  7. Optional: In the PO Number window, in the PO Number box, enter a custom purchase order number.
  8. Click Next.
  9. On the bottom ribbon, click Mode P.O. It will change to Mode Receive.
  10. On the bottom ribbon, click Find PO.
  11. Select the negative purchase order that you created, and then click Open.
  12. On the bottom ribbon, on the Receive PO tab, click Process.
  13. On the bottom, ribbon, on the Confirm PO tab, click Process.
  14. In the PO Freight Cost window, click OK or press F8.
  15. A Supplier Return message will appear, and an A/R invoice is added to the supplier’s account with the payment type CREDITPO.

    Note: In this message example, the option to create a replacement purchase order for the returned items is also turned on.Invoice receivable invoice createdA/R invoice created

How to process a replacement purchase order and automatically adjust the supplier A/R account  

  1. Click the PO module or press ALT + 4.
  2. On the bottom ribbon, click Mode P.O. It will change to Mode Receive.
  3. On the bottom ribbon, click Find PO.
  4. Select the replacement purchase order that was created, and then click Open.Auto-generated replacement PO
  5. On the bottom ribbon, on the Receive PO tab, click Process.
  6. On the bottom, ribbon, on the Confirm PO tab, click Process.
  7. In the PO Freight Cost window, click OK or press F8.
  8. A Supplier Return message will appear, and an A/R invoice credit is made to the supplier’s account with the payment type ROACREDITPO.

    Accounts receivable credit applied

How to credit the supplier account for a monetary reimbursement

  1. Click the Customers tab.
  2. View the supplier account.
  3. On the bottom ribbon, click Account Payment or press F5.
  4. In the Amount of Payment box, enter the reimbursement amount.
  5. Click Accept or press F12.