DEFECTIVE MERCHANDISE HANDLING

When a customer receives “defective” merchandise a credit to the customer’s account is necessary and a subsequent billing to the appropriate responsible party should follow. In almost all cases the responsible party is either, the merchandise vendor, the carrier, or you. The example to follow explains in detail, crediting the customer and the follow-up billing of the responsible part.

DEFECTIVE MERCHANDISE CREDIT

Select Credit Entry (option # 5 from the Order Entry Functions menu).

Type (customer number) <enter>.

At the number to change prompt, type 3 <Enter>. Type DEF <Enter>. This will not affect inventory and will check back 24 months to verify the sale of the items being credited.

At the part number prompt, type (part number) <enter> type (quantity)<enter> that was defective. If the part number has been flagged as “non-returnable” then you will have to enter the part number followed by a “/O” then enter the override password.

Since the program searches the previous 24 months for the sale of the item being credited the most recent sales ticket will be displayed in the description field and the sales price and discount will be displayed in the appropriate fields as well. The cursor will advance to the next line for entry of another item. If no previous purchase is found, a message stating “No Inv Found” will be displayed and the cursor will stop at the “V?” prompt. You can either accept the item by pressing <enter> or reject the item by typing “C” <enter> thereby canceling the line.

You can enter a text message explaining the nature of the defect if necessary.

Finish the credit.

The defective merchandise credit issues a credit to the customer for the defective items but does not put the merchandise back in stock. In almost all cases the defective merchandise should be charged to the vendor, the carrier, or an in-house expense account.

DEFECTIVE MERCHANDISE BILLING TO THE VENDOR

Select Invoice Entry (option # 4 from the Order Entry Functions menu).

Type (customer number) <enter>. This should be the vendor’s charge back account number, (V something).

Type “2” <enter> and change the order type to “VRW” and press <enter>.

Type “8” <enter> and change the customer P.O. field to the defective claim number you want to reference and press <enter>.

Enter the part numbers and quantities of the items being claimed.

Finish the invoice.

DEFECTIVE MERCHANDISE BILLING TO THE CARRIER

Select Invoice Entry (option # 4 from the Order Entry Functions menu).

Type (customer number) <enter>. This should be the carrier’s charge back account number, (V something).

Type “2” <enter> and change the order type to “VRW” and press <enter>.

Type “8” <enter> and change the customer P.O. field to the damage claim number you want to reference and press <enter>.

Enter the part numbers and quantities of the items being claimed.

Finish the invoice.

DEFECTIVE MERCHANDISE BILLING TO THE IN-HOUSE EXPENSE ACCOUNT

Select Invoice Entry (option # 4 from the Order Entry Functions menu).

Type (customer number) <enter>. This should be the in-house expense account number, (W something).

Type “2” <enter> and change the order type to “IDC” and press <enter>.

Type “8” <enter> and change the customer P.O. field to the defective claim number you want to reference and press <enter>.

Enter the part numbers and quantities of the items being claimed.

Finish the invoice.

The entire amount of the billing will be cleared to an internal expense account for accounting purposes.