Sage 100

Help please. Version 4.5 standard. Customer enters a PO with 1 line item. The ""item"" is a miscellaneous item /PRODUCT. The PO receipt of goods and receipt of invoice are both performed. Then, the PO Mat/Req Return is used to return the goods. Issue: The PO now shows a backordered status. Neither the line or PO can't be deleted. Is this because the invoice is still showing as open to the vendor?

try going into the PO and change the quantity on the line item. Sometimes that will open up the backorder field and let you zero out the backorder qty. you can then change the original ordered quantity back if you need to. let me know if that works

I know that might work, however, this customer has a lot of returns. Do you know if that is that standard operating procedure for this type of transaction?

Yes, it is - I've had to deal with this with a client that really did not want items to go to backorder status when they return goods. The only answer I could find for them was after they do the return they need to go back to po entry and set the backorder amount to zero. At that point (assuming all other items are received and invoiced) the PO status is changed to ""complete"" I expected that on the return of goods screen they would have a chance to set the backorder qty to zero but the field is not available on return of goods (or if there is some setting I've missed it)

The other issue that bothers me is they entered the vendor invoice at the same time they entered the receipt of goods. Apparently these returns happen frequently. the vendor invoice also needs to be adjusted to 0. Seems like a huge internal control hole.... could be easy to accidently pay a vendor for which the inventory was returned.

Are they returning the item for credit or replacement? If they just want credit, DON'T reference the PO number in the PO field. Referencing the PO has the effect you are describing. If you need to reference the PO, use a comment field. And if you are returning for credit, complete the invoice and date fields so that a credit is generated in AP. But of course, the AP clerk has to wrestle with the difference in credit asked for and credit given. Has nothing to do with invoice being open to vendor. It is ALL about using the PO number in the PO field........

I would wager they ARE overpaying the vendor. What is their process for tracking returns? This entire return process is a big hole.... Seriously. This is not sarcasm........

I agree with Jeff's assessment. and @DougHiggs you're right there is a huge hole there. when you return goods if you don't put an invoice number in there is nothing recorded in Sage and no way to see that you are expecting a credit from the vendor. I use the same advice that Jeff gives - put an invoice number in during the return of goods if you are expecting a credit. however when the vendor actually sends the credit, your invoice number won't match the vendors so the AP clerk has some work.

@DavidOverholt - Hopefully, the vendor is providing a return authorization number which can be used to track the credit memo matching.

They are returning the item for credit. So, Jeff, you say they should use return of goods to return the item and enter the vendor invoice number for credit without using a PO #? If the vendor invoice already exists you can't enter a return transaction using the same invoice number. I cant figure out how to get the qty invoiced off of he PO.

@JeffSchwenk - I agree, and I have created UDF's to help matching those up (when the vendor provides one). But if you put the credit memo in during the return process, then the vendor sends you a credit memo with a different number the check detail won't match without some additionl work. Plus the vendor may not give full credit. Most of my clients don't have a lot of returns but those that do seem to struggle a bit unless they keep track outside of Sage100. Just seems like there could be an easier way. Having a return of goods table that you could do a ""return"" and ""receipt of Credit"" would provide better tracking.

@DougHiggs I see Jeff's point , if you don't reference the PO then the qty received, and invoiced should still match, I've never tried that but I like the idea. You could put a credit memo in through AP later, but you still have the issue of tracking the credits that vendors owe you. if you reference the PO number and you put an invoice # in then a credit invoice will be created and the qty invoiced will be reduced on the original PO. But you must do that all in one step. (you can't return first then later put the credit against the PO).

Yes you can later do the credit against the PO. You do a negative Receipt of Invoice.