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Last updated on July 6, 2008. Email your inquiries and suggestions to vincent
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wavelet.biz
Copyright of WAVELET.BIZ
Question:
Why do we need to use sales return? Why don't we just cancel/void the invoice or cashsale?
Answer:
When an invoice is created by mistake, or the details are wrong, for some reasons, certain details are inaccurate, for CONTROL purposes, we do not allow
the cancellation of the invoice. However, we allow the user to do a Sales Return BASED ON THE INVOICE/CASHSALE.
It has happened many times, in many different organizations that we know where control of a software system is pretty loose, and by the time fraud was
detected, it was too late to take corrective measures.
In Wavelet EMP, every sales return must refer to an invoice/cashsale, this way, not only we can tighten the operations by preventing the the cancellation or void of invoice/cashsale excessively.
Question:
Some systems allow putting negative quantiy or negative price in the invoice as a form of trade in or return from customers, can it be done at Wavelet EMP?
Answer:
No, not at Wavelet EMP. When a negative quantity is entered into an invoice, no reference invoice/cashale is specified, this is a loop hole because
no checking of the return price is enforced to ensure the returning price is lower or equal to the selling price.
In addition, when there's a trade in of stock, it should affect the moving average stock values. By simply putting a negative quantity at the
invoice, it makes the calculations of the COST OF GOODS SOLD, the new average stock values to skew.
In order to ensure the integrity of accounting module, inventory module, and various sales return business logic, Wavelet EMP does not allow users to put negative quantity or price in the INVOICE/CASHSALE. Creating a proper sales return is the right step to do.
Default Option: SALES RETURN WITH CREDIT MEMO (you can change the default option under SYSADMIN -> CONFIGURATIONS -> TRADING)
In most cases, a credit note is automatically generated when a sales return is produced. This credit note could be used to knock off / contra a
previous invoice by the same customer if it is still outstanding, or it could be used to knock off a future invoice to the same customer.
If there's no invoices to contra, and customer choose to be paid in full or partially, the system allow the a Payment Voucher to be created to settle
this Credit Note. Use of Payment Voucher to knock of customer credit note is a unique feature that does not existing in many other accounting packages.
Alternative Option: SALES RETURN WITH FULL REFUND
In retail business, it is common that the users at the Point of Sales may key in some mistakes while creating a cashsale. When doing sales return, instead of going thru the full cycle of knocking off other invoices with the credit note produced while a sales return is created, or use of payment voucher etc... sometimes it is faster to just use the CASH REFUND method. This is because when another new cashsale (with correct details) is created, the CASH REFUNDED, is actually "COLLECTED" back.
Question:
When there's a sales return, what's the impact on gross profit?
Answer:
It depends on the return price, and also depends on the average stock value of the item. When an item with average cost of RM60 was sold at RM80, a
GP of RM20 was recorded when the invoice/cashsale was issued. And if the same item was subsequently returned at RM50, an additional RM10 gross profit is recorded.
Question:
How does it affect the salesman commission calculations?
Answer:
Say, cashale 1234 was done by salesman A, the customer return the goods in another outlet, staff B created a sales return for this customer. The system will automatically deduct the amount/quantity from the sales report for salesman A because when creating a sales return, cashsale 1234 was specified. In certain systems that is more flexible or loose, calculations of commissions and many other reports become meaningless.
Yes, there's serial number support, this will help electrical shops, computer shops, and mobile phone outlets to cross check the validity of the
return items.
In short, Sales Return is a very important function. Instead of voiding or cancelling invoice, many companies have benefited from the use of Sales Return
to better control the operations, prevent fraud, and minimize user mistakes.