Re: factory returns - how to hit GL

["Greg Wieczorek" <wieczog@xxxxxxxxxxxx>]

Suzi

I have 2 suggestions.

One way to handle the situation you describe is to create a DRP order that
moves the items from your DC to the factory. In this way your picking
paperwork generated but there is no invoice so no AR.

If you don't have DRP, try using the same customer for shipments to the
factory. Create AFI rules so that shipments to the factory "customer" go to
accounts that could be cleared out as part of your period end close. In this
way you would have a known set of accounts to adjust.

Good luck.

Greg
----- Original Message -----
From: "Suzi Rowley" <SuziR@fossil.com>
To: <JBAUsers-L@midrange.com>
Sent: Wednesday, October 11, 2000 7:27 AM
Subject: factory returns - how to hit GL


> We are wondering if anyone has any suggestions on how to handle a
particular
> situation regarding factory returns.  We have circumstances arise in which
> we have to return inventory that has already been received in our system
to
> the factory due to defect.  We use PKMS in our DC.  Currently, we enter an
> order in the system to remove the inventory from both PKMS and System 21
and
> ship it back to the factory.  However, this produces an invoice that hits
> AR, sales, cost of sales and inventory and then we have to do a lot of
> manual labor to remove this from AR (as it is not a true trade receivable)
> and fix GL(to remove the hits for sales since it is not a sale and cost so
> this does not mess with our margins).  We want this to hit GL directly
> without ever posting to AR.  Does anyone have any suggestions on how to
> handle this?
>
> Suzi Rowley
> Accounting System Analyst
> Fossil Partners L.P.
> 972-699-6900, fax 972-498-9690
> email: suzir@fossil.com
>
>
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