Advanced Intercompany supports a variety of business return processes. This article describes the types of return processes supported by Advanced Intercompany and shows how Advanced Intercompany can improve your business.
A return process between companies is the way businesses handle returns of products or services that were sold by one company to the other. Products or services can be returned because of a damage or for other reasons.
Advanced Intercompany supports three types of return processes described below:
Basic Return Process
A basic return process involves two companies: SELLER and BUYER.
In a standard return process, if the BUYER wants to return, for example, damaged goods, they notify the SELLER who confirms the return and provides instructions on how to do it. The BUYER ships the goods back and the SELLER inspects them for damage. If the damage is confirmed, the SELLER processes a refund or replacement according to the agreed terms.
The return process is usually initiated by the BUYER, but this process can also be initiated by the SELLER.
Drop Shipment Return to the Buyer
A drop shipment return to the buyer involves three companies: SELLER, BUYER and CUSTOMER. In a drop shipment return process, when a CUSTOMER wants to return goods, the BUYER company verifies the return and communicates it to the SELLER. The SELLER confirms the return and provides instructions to the BUYER company, which coordinates the return with the CUSTOMER. The SELLER inspects the returned goods and processes a refund or replacement, if the return is valid.
Drop Shipment Return to the Seller
A drop shipment return to the seller also involves three companies: SELLER, BUYER and a CUSTOMER. In a drop shipment return process where the CUSTOMER returns goods directly to the SELLER, the SELLER inspects the return and contacts the BUYER company to provide relevant details. The BUYER company verifies the return and coordinates the return process with the SELLER. The SELLER processes a refund or replacement according to the agreed terms.
Exact Cost Reversing
When returns are registered in Business Central, companies need to ensure that inventory valuation is maintained correctly. For this purpose, it is necessary to set up exact cost reversing as mandatory in either Sales & Receivables Setup or Purchase & Payables Setup. Advanced Intercompany enables the picking of items to be returned from inventory at the unit cost the items were purchased at for the drop shipment return process.
|Find out how to go through the basic Advanced Intercompany return process||Basic Return Process|
|Find out how a drop shipment return to the buyer works in Advanced Intercompany||Drop Shipment Return to Buyer|
|Learn how a drop shipment return to the seller works in Advanced Intercompany||Drop Shipment Return to Seller|
|Learn how to track your stock value and quantity when the items have already been returned to your IC partner||Returns Pre-Invoicing|
|Find out how to create an intercompany credit memo for multiple returns||Combined Invoice|
|Learn how the exact cost reversing can be supported within the application||Exact Cost Reversing in Intercompany Returns|