Return order in AX 2012

Return order:
Return order is the process in which customers return items that they have purchased.

Example:
Customer might return items if it is defective or if it was received incorrectly. You need to create a return order in ax before receiving items back from the customer.

Steps to create Return order in AX 2012:

1. First step is to find invoiced sales order against which return order is getting created.
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2. You can see above sales order which has quantity 1 which is already delivered to the customer and invoice is also generated for the same.

3. Sometimes due to incorrect items received or due to some defects in the item, customer want to return it to the company.

4. Before returning the items, we need to create a return order in AX for proper financial and inventory updation in the system.

Note: Sales order should be in invoiced state to create return order.

 5. Go to Sales and marketing --> Common --> Return orders--> All return orders

6. Click on Return order button (Marked red above) to create new return order.

7. Add the following information:

  a. Customer number:- it should be same as the sales order customer number for which we are creating a return order.
  b.RMA number: It is a return material authorization number. It is a numbered authorization provided by the company that permit the return of the goods from the customer.
 c. Return reason code: These are codes which are specified in the system against the possible reasons for return of goods from the customer as per company's policy.

Note: Some companies have some policies concerning return. For example,some companies only allow defective product for return. In such case we can make it as reason and make the return reason code mandatory so that system only take defective product as return.

d. Other details: Enter other details as per requirement.

8. Click ok.

Find sales order
9. Click on Find sales order to create return order lines with respect to customer invoice.

Note: The invoices posted against the customer will come in the find sales order form. We can select one or multiple invoices and in each invoice, we can select one or multiple lines which will come in the return order.

10. We can also edit the quantity in the particular line in case we don't want full return.
11. We can also specify the reason code for correction in the invoice which we are selecting.
12. Click ok.

13. You can see a line will get created in the return order with negative quantity as we are going to receive item back.

Print Return order
14. Now the next step is to print the return order which is then send to the customer. The RMA number is printed in the return report as well as the return reason code if it is mandatory. It tells the customer that the company is agreed to receive the mentioned items with the quantity specified.

Note: Upto this step, the return order status is "Created".

15. After this items will get received from the customer. There are two ways we can update the system with this arrival.
    a. Post the registration
    b. Perform the arrival overview.

16. Here in this blog, we will explain the receipt of the items by registering them in the system.

Note: In the subsequent post, I will walk you through the Arrival overview process for return order.

Registration:
17. In order to post the registration for the items which we are receiving, go to Update line--> Registration

Note:
Disposition code: We specify the codes in the system against the list of actions which we are going to perform with the inventory received and with the customers.

18. Enter the disposition code--> Click ok.

19. Registration form will get open.

20. Click on Auto-create. (It avails the quantity per item for registration)
21. Click on Post all. (It will register the quantity in the system)

22. Once done, the Receipt status goes to "Registered" for the items.(See below)

23. Close the registration form as the return items are now registered in the system.

Note: After the registration, the return status of the return order changes to "Open"

Acknowledgement
24. Once items are received back,its time to send the acknowledgment to the customer.
25. Print the Acknowledgment and send it to the customer as a confirmation for the items received by the company.

Packing slip:
26. Now the next step in the return order is to post the packing slip.

Note: Packing slip will get posted in the return order in order to register the financial impact of the received items in the system.

27. Click Ok to post the packing slip.

Invoice
28. Now the last step is to post the invoice for the items which we have received from the customer.

Note: We cannot post the return sales order invoice from the return order form in AX.

29. Go to Sales and marketing--> common--> Sales orders--> All sales orders.

Note: We can get the return sales order number from the return order form. Go to above path and filter by the return sales order number, we can see the sales order with the order type as "Returned order".(See below)

30. You can see order in Delivered state as packing slip is already posted for the return sales order from the return order form.

31. Select the order and click on Edit.

32. Go to the invoice tab--> click on Invoice button.

33. Click Ok to Post the invoice for the order.

34. You can see invoice journal is posted after the invoice posting.

Note: Once invoice is posted for the return sales order, the Return status for the return order changes to "Closed" state.

In this way,we can run a Return order cycle in AX 2012.

Please do let me know if any queries or suggestions to be made pertaining to this topic.

See you soon with the new topic..

Credit note creation in Ax 2012

Hello All. Today I am going to take you through the process of Purchase Credit Note.

What is a Purchase credit note?

Credit Note Process:

Credit note creation: To create a Purchase Credit Note follow below process, this is a easy way to do a credit note.

An important note to remember is that we cannot create the credit note directly in the same invoice after invoicing a PO as the Credit note button is not active. To create a credit note we have to do it in a new PO.

Just follow below simple steps after creating and invoicing apurchase order:

Now create new purchase order:

Procurement and sourcing > Common > Purchase order > All Purchase orders > New purchase order 

Fill all mandatory fields of the PO

Before adding new lines to the PO go to the Purchase taband click Credit Note in Create Section as shown in the screen shot below. Based on the selected vendor in the header level all the Invoiced PO’s are listed.

Now select the Invoiced PO which you would like to create the Credit Note for from the list. Just remember that multiple invoiced PO’s cannot be selected from the list as the Credit Note can be created only for one at a time.

Click OK

As in the next screen shot once the OK button is clicked,under purchase order line a new –ve line is added, then follow the normal PO process and Click Confirm

After the confirmation the status is changed to Confirmed

Then go to the Receive Tab, click Product Receipt button enter the product receipt number (as it is mandatory) then click OK.

After completing the Product Receipt the purchase order status changed as a Received.

Then go to the Invoice tab click on invoice button give the invoice number then post the Invoice/order.

After completing the invoice the purchase order status changed to Invoiced.

This is the complete Purchase Order Credit note Process. Hope it would be helpful for you.

How to cancel Posted Product receipt for Purchase Order in Ax 2012

If you have posted a packing slip but you want to abort it, there is a way here. In the following screen print, PO is packing slip posted;

To cancel the Product receipt, click on the above mentioned highlighted menu ‘Product receipt’. System opens the following form;

Click on Cancel;

Once ‘Cancel’ is clicked, system throws the following info message;

Click ‘Yes’ & system cancel the packing slip.

System also enabled back ‘Product receipt’ button. See the following screen;

To reconfirm if packing slip is cancelled and quantity is not shipped, refer the following navigation;

Accounts payable -> Common -> Purchase orders -> All purchase orders -> Select related purchase order -> Click on General menu -> Click on Line quantity menu button

See the highlighted field where system shows deliver remainder is 10 i.e. Product receipt is successfully cancelled.

P.S. Once order is invoiced, you can not use this functionality.

Error in Ax 2012: The quantity cannot be reduced. The number of inventory transactions on order is too low because the quantity or part of it is referenced by an output order or a production order or is marked against other transactions

Steps to repro this error:

1. Create SO with 20 quantities.
2. Perform Picking List with 20 quantities
3. Perform Picking List registration with 10 quantities
4. Perform packing slip with 10 quantities

Now, reduce the quantity @ SO line from 20 to 15. System throws the following error message;

To overcome this issue:

Click on Inventory -> Output order

System will not allow to select Output order menu unless quantity is changed back from 15 to 20. Change the Sales line quantity from 15 to 20 and click on Output order menu.

New form will open (Output order), click on Functions -> End inventory order

Once clicked on End inventory order, system opens the following dialog box;

Click on Ok button.

Close the output order form.

Now edit the quantity in SO line, it will allow to edit the quantity without any errors

Setting up Auto charges in Ax 2012

Auto charges also referred to Automatic charges, is a functionality whereby we can apply specific set of charges automatically to any Sales Order/Purchase Order.

This kind of a functionality is required when the user has to add a specific charge on all the PO/SO created.

Let’s say Loading & Unloading charges is something which we usually charge to all the vendors/customers from a specific state.

Step 1: Create Charges groups

Note: Charges groups are required only when the charges are applied to some customers/vendors but not all.

Accounts receivable –> Setup –> Charges –> Customer charges groups

or

Accounts receivable –> Setup –> Charges –> Item charges groups.

or

Procurement and sourcing –> Setup –> Charges –> Vendor charges group.

or

Procurement and sourcing –> Setup –> Charges –> Item charges groups

 

The system automatically determines the type of charge code based on the navigation of the form selected by the user.

Step 2:

Attach the Charges groups created above to the customers/vendors/items as required.

Step 3:

Define the Auto charges setup:

Accounts receivable –> Setup –> Charges –> Auto charges. or Procurement and sourcing –> Setup –> Charges –> Automatic charges.

 Below is the specimen of the Auto charges form.

1. Press New to define a new auto charge.

2. In the Level field, select the level to apply the auto charge to from the following options:

• Main – Applies charges to the order header.
• Line – Applies charges to the order lines.

3. Select an account in the Account code field from the following values:

• Table – Applies charges to a specific customer or vendor.
• Group – Applies charges to a charges group.
• All – Applies charges to all customers or vendors.

4. Customer relation/Vendor relation:

• Define a specific customer/vendor for account code = Table  or
• Define a customer/vendor charges group for account code = Group.

5. Item code

• Define an item. System allows selecting an item code only when level = lines at the current setup.
  • Table – Applies charges to a specific item.
  • Group – Applies charges to an item charges group.
  • All – Applies charges to all items.

6. Item relation

• Define a specific item for Item Code = Table or
• Define an item charges group for Item code = Group.

7. Access Lines FastTab & define the charges and the charges rates, when the current auto charge is applied.

8. Currency , Define the currency for the charge.

9. Charges code , Define the code for the charge.

10. Category, specify calculation basis for the charges in this field and enter a value in the Charges value.

• Fixed – The charge is entered as a fixed amount on the line. 
• Pcs. – The charge is based on the unit (eg. Rs. 2/- Per piece). These charges can be used only on order lines.
• Percent – The charge is entered as a percentage value. 
• Intercompany percent – The charge is entered as a percentage on the line for intercompany orders. This option can be used only on order lines.
• External – The charge is calculated by a third-party service that is associated with one or more shipping carriers.

11. In the Charges currency code field, specify a currency for the charge to use a different currency than specified in the Currency field. This can be used if the Debit orCredit type is either Ledger account or Item for the selected charges code.

12. From amount & To amount can be used when the charges are to be applied on a slab basis.(Eg. Apply the charge only if the Order total is between Rs. 100 – 200). To define tiered charges, from amount and a to amount can be defined only if the auto charges are defined at the main level and if the category is Fixed or Percent.

13. Sales tax group, specify a sales tax group if the charge is taxable.

14. Keep check box allows to retain the charges transactions after invoicing.