It depends upon your business, but you may need to deal with returns.  When products are returned, fill out an invoice form.  Type in the quantity and catalog number in the Item Area. Use the "R" sale type code (S-code) in the Item Area to indicate a returned item. When the "R" code is used, the customer will be credited for the returns.

Sales codes are entered in the "S" column in the Item Area. The "S" sales code , above, means regular sale. A "R" sales code is used to indicated returned items.

Note that the following is not applicable to Level I programs which do not have inventory features.

Use a Separate Invoice. It is good procedure to record returns on their own invoice.  It makes it easier to track returns.  (Note that if you calculate royalties based on discounts, then you should make out a separate invoice for returns.  This helps assure that returns and sales are placed in the appropriate discount range.)  To do this, type in "RETURN" or "RETRN" in the PO Number blank.  Also, in the PO Number Blank, include the customer's return number if they have one.  Whatever is in the PO Number blank shows up on billing statements, and you and your customer will be better able to identify return transactions.

Inventory Adjustments. When you use an "R" code, AnyOrder places the book back in your inventory.  If the returned items are still in saleable condition, you'll want to keep them in your inventory.  No adjustments are necessary.

Often, however, sometimes returned items are no longer saleable.  For non-saleable items, you have a couple of choices.  You can keep them in inventory and sell them at a greatly discounted price.  Or you can dispose of them and remove them from the inventory altogether.

If you decide to remove them from the inventory, you'll need to adjust the inventory level for that product.  There are two ways of doing that:

1) Use "D" Code. The simplest way is to give the product a "D" code.  The "D" code can be use instead of the "R" code.  Generally, the "D" code is used when products are damaged in shipping and you want to credit the customer.  But it also can be used to indicate returned products which are no longer saleable.

The "R" and "D" codes are treated differently when you run an inventory.  The "R" code places products back in inventory.  On the other hand, no adjustment is made to the inventory when the "D" code is used.

When you use the "D" code, AnyOrder will place the following notation on the bottom of the printed invoice: "Damaged or Non-saleable Return."  From the customer's standpoint, there is no difference between "R" and "D."  In both cases, the customer is credited for the returned items, but from your standpoint there is an important difference in how your inventory is adjusted.

Be aware that even though the notation on the printed invoice clearly identifies the purpose of the "D" code, you may have an occasional customer that is confused by it.  In such cases, you may need to talk to the customer so they understand that you are crediting them for a returned item.  The simplest explanation is that "R" and "D" codes distinguish between returned items:  those that are saleable and those that are not.  All in all, the use of the "D" code makes things much more efficient for you.  It's the easiest way of dealing with returns which are no longer saleable.

2) Manually Adjust Inventory. The other way to remove non-saleable returns from inventory is to make a manual adjustment of the Inventory File.  To make a manual adjustment, select PRODUCT TOOLS >> PRODUCT INFORMATION AND CATALOG NUMBERS from the Menu Bar.  In the "Inventory Added" blank, enter the number of items you are removing from the inventory as a negative number.  See Adding Inventory for more information.  This will adjust your inventory level downward to compensate for the non-saleable returned items.

You'll see the term "inventory shrinkage" used in this program.  It means the same thing as inventory reduction.  Inventory shrinkage or reduction occurs from non-saleable returns, items damaged in your storage area, or quality problems that are detected among inventory items. It may also be necessary to record a reduction or shrinkage of inventory because of an earlier inaccurate count of the inventory.

It's likely that returns will be coming in on a regular basis, and it's usually best to let the non-saleable returns accumulate for a while.  When you get a sufficient pile of non-saleable items, enter the appropriate reduction in the Product Information Database (described above) and dispose of them.  This will allow you to make more efficient use of your time.  Making a reduction entry every time a return package arrives is time consuming.  By waiting, you can do all products at once and update inventory levels quickly.

Unacceptable Returns. At times you may receive products which are so badly damaged that they are unacceptable as a return.  You'll need to work with your distributor to agree upon a definition of an unacceptable return.  Some distributors require that you fill out a form detailing why the book is unacceptable.

When you receive unacceptable returns, indicate them on a return invoice by using the "U" sales code.  This indicates to the distributor that you will not be crediting them for these products.

When you use the U-code, AnyOrder will not make any adjustments to your inventory.  In the case of regular returns ("R" code), AnyOrder puts the products back into your inventory count (unless you take them out).  Unacceptable returns ("U" code), however, do not go back in your inventory.

Depending upon your agreement with the distributor, you may send them back or you may destroy them.  When you run an inventory (PRODUCT TOOLS and INVENTORY FUNCTIONS), you can get a count of the number of unacceptable returns by selecting TOOLS and MORE DATA from the Menu Bar on top of the Sales Activity and Inventory Report screen.