Customer Return Credits

When customer return items have been received and inspected, credit invoices are created so the customer can be reimbursed for the returned items. One or more credit invoices are created automatically when all the customer return lines on a customer return with a return action of Customer Credit have a status of Inspected.

One or more credit invoices will only be created if the originating sales order line has been invoiced. This ensures that credit invoices are only created where appropriate, when customer return line items have an associated invoice line related to the originating sales order.

Note:

The originating sales order must be associated with an invoice line before a credit invoice line can be created.

Credit invoices are created in age order of the related sales order invoices for items that are not serialized as follows:

A credit invoice line is created for the first invoice line created for the same item.
If there is more than one invoice line for the same item and the credit amount is enough for the oldest invoice line, a credit invoice is created for that invoice line.
If there is more than one invoice line for the same item and the credit amount is not enough for the oldest invoice line, the next oldest invoice line for the same item is processed.

For serialized items (Inbound/Outbound or Discrete), the credit invoice created is related to the invoice line related to the serial number of the returned item.

The credit invoice lines created are grouped by credit invoice to ensure there are the same number of credit invoices as there are invoices related to the originating Sales Order, and only when the invoices have lines with items that have been returned.

Return Actions

Customer return lines that have a return action other than Customer Credit are not credited. The total amount for all the credit invoice lines will be less than the total amount on the related payable invoice. The Credit Status of Partially Credited displays on the payable invoice after all the customer return lines have been inspected and at least one of them has a return action other than Customer Credit.

Sales Orders with Discounts Applied

Credit invoices will not be created for returned items where the associated sales order has a discount applied at the header. If the discount is applied at line level the amount displayed on the invoice line reflects the discount applied and the credit can be created for the discounted amount.

Partial Shipments

Sales orders with lines delivered in multiple shipments will generate a credit invoice for each shipment.

Non Conforming Items Rejected at Inspection

Items rejected during the inspection process are still eligible for credit. The inspection process determines what happens to the returned item depending on the condition and serviceability of the item and does not influence whether or not a credit is created. When the inspection is complete the total quantity to credit will always include the quantity of items categorized as non-conforming at the point of inspection, as well as the quantity of items accepted.

Invoice Status

The credit status for a sales invoice can be one of the following:

Fully Credited - The total amount credited is equal to the total amount invoiced.
Partially Credited - The total amount credited is less than the total amount invoiced.

The credit status of the original sales invoice updates as the credits are created depending on the following:

How the sales order was built
The number of shipments used to deliver the sales order
The quantities returned for each sales order line
The number of customer returns created for a single sales order

Credit Amounts

The amount to credit for each customer return line is equal to the Actual Quantity Returned x Unit Price.

Note:

You cannot enter a unit price in the customer return line that is higher than the extended unit price on the original sales order line. The Unit Price field is editable on the Customer Return page but if you enter a higher unit price on the customer return line you will receive an error message. If you wish to credit other amounts or fees, for example the shipping costs of the sales order line, you can credit these amounts from the original sales invoice.

Tracking Customer Return Credits

Tracking between the customer return and the related credit invoice ensures you can see which customers have been credited, and which customers have not yet been credited for the items they have returned. Tracking also ensures credits are applied only once for each customer return.

Serial Number Tracking

You can track the serial numbers of items that have been credited in the credit invoice that is associated with a customer return. This will enable users to retrieve and print the serial numbers, for example on a credit note in Certinia Accounting for customer returns of type Customer Credit.

For serialized items (Inbound/Outbound or Discrete), the credit invoice created is related to the invoice line related to the serial number of the returned item.

Note:

Each credit invoice created is directly related with the associated invoice of the originating sales order.

The serial number page updates with the information associated with the credit invoice created for the invoice related to that serial number.

Related Lists

Related lists on the customer return and customer return line display credit invoice data as follows:

Object	Related List	Field
Customer Return	Credit Invoice Related List	Credit Invoice Date
		Credit Invoice Name
		Export Status
Customer Return Line	Credit Invoice Line Related List	Amount
		Credit Invoice
		Credit Invoice Line Name
		Item
	Serial Numbers	Item
		Serial Number
		Serial Number Name
		Type of Serial Number
Credit Invoice Line	Serial Number Related List	Item
		Serial Number
		Serial Number Name
		Type of Serial Number