In this article we look at Supplier Return Codes.
This article is a prerequisite to the articles covering the Supplier Return process in Jiwa.
The intention is to provide you with an understanding of each of the default codes that are set-up in your system and how each code impacts the Inventory, Creditors and General ledgers.
Supplier Return Codes & Return Types
Each Supplier Return Code that is created is linked to a Return Type, return types are fixed and cannot be created or edited.
When your Jiwa database was implemented six (6) default return codes are set-up each linked to one of the six (6) available return types.
Return types control the return process in Jiwa so it is important to have a clear understanding of how these return types are used by the system.
Return
The Return type is used when stock is being returned to the supplier for credit.
The following ledger updates are completed;
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Quantity on Hand is reduced
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Credit note is created against the creditor
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The Inventory and Creditors control accounts are updated in the General Ledger
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Any differences between the return value and the credit value is posted to the Cost Price Adjustment control account from the inventory item
Exchange
The Exchange type is used when stock is being exchanged only.
A supplier credit note is not created by this return type.
The following ledger updates are completed;
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Quantity on hand is reduced by the item being returned for exchange
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The value of the returned item is posted to the Write Off control account from the inventory item
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Quantity on hand is increased by the item being received in exchange
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The total value if the received item is posted to the Write On control account from the inventory item
Short Delivery
The Short Delivery type is used when the supplier has invoiced you for the full order value yet they have short supplied you.
When using this return code it is assumed that you have received the full invoiced value into Jiwa so you now need to reduce your quantity on hand and record a supplier credit note.
The following ledger updates are completed;
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Quantity on hand is reduced
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Credit note is created against the creditor
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The Inventory and Creditors control accounts are updated in the General Ledger
Pricing Difference
The Pricing Difference type is used to request a credit for pricing corrections with your supplier.
This code has no impact on your quantity on hand however the value of your stock will be impacted.
The following ledger updates are completed
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Inventory value is updated with the pricing difference
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Credit note is created against the creditor
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The inventory and Creditors control accounts are updated in the General Ledger
Short Delivery (Tracking) / Pricing Difference (Tracking)
The tracking return types are used purely for tracking purposes there is no impact on the Inventory, Creditors or General ledgers.
Maintaining Supplier Return Codes
From the menu select Purchasing | Supplier Returns | Configuration | Supplier Return Codes
Update, delete, enable or disable return codes as required.
The return type against each return code can be changed, however once the return code has been used on a supplier return request, shipping or credit document the ability to change the return type is disabled.
