In this article, I will be explaining the process of returning a Serialized Unit to the supplier in the Lizzy Dealer Management System (DMS). Now just to make sure we’re all on the same page here, a Serialized Unit—also known as a Major Unit or Whole Good—is, as the name suggests, any vehicle or large piece of equipment and is normally associated with a unique serial number. An ATV, Riding Lawnmower, and Chainsaw are all examples of Serialized Units.
Returning a Serialized Unit consists of 3 main steps. The first is the actual return and posting of the refund to A/R, the second is using that refund to create a credit memo, and the final step is using that credit memo to cancel out the original payable.
Step 1: Returning the Unit: To begin this process, locate the unit in question and click the “Return” button. Choose the “Refund Freight Cost Too” option, if desired. This will place the unit on a Serialized Refund PO.
Next, locate the Serialized Refund PO and click “Edit PO”.
From there, click “Next” and verify that all the items and costs on the PO are correct. Remove any items on the PO that you are not returning, and then click “Next” again. Finally, click “Post Refund”.
- At this point, the unit has been removed from your inventory and tagged as “returned”. However, the original payable for that unit is still there, unless you already paid it off before this whole process started. What we need to do now is use the refund you just posted to create a credit memo, which we will ultimately use to pay the original payable.
Step 2: Creating the Credit Memo: What exactly do we mean by creating a credit memo? The first thing to understand is that when we posted that AP to return the unit, Lizzy automatically created an AR to keep track of the credit. This credit might be paid out with a check, or it might be issued what is commonly referred to as a credit memo. The check is easy and should be entered like any other payment in AR, the credit memo is what we’re going to cover here.
First, locate the supplier in Contacts. From there, go to Accounting → Receivables → View Current Contact A/R. Next, click on “Refunds”. You should see your refund PO listed there along with the amount of the refund. Now, click the “Pay Receivables” button. This will take you to the payment form.
Click the green arrow next to your refund amount and then click the “Credit Memo” icon in the list of payment options below. Enter a credit memo number, if desired. Finally, select a cash drawer and click the “Pay” button.
Now that we have the credit memo, we can use it to cancel out what we owe the supplier for the unit.
Step 3: Paying the Original Payable: Go to Accounting → Payables → Pay Payables and select the supplier in question from the drop-down.
Next, locate the PO in question and check the “Pay” box next to the applicable unit(s). If you refunded the freight cost as well, then also add the appropriate amount in the “Non-Unit Total” field. After that, scroll down to the “Apply Credits” section, locate the credit we created in step 2, and click the checkbox to apply it. Finally, scroll down to the bottom and “pay” the payable, which should be at $0.00 if you have done all this correctly.
And there you have it. The unit(s) in question have been removed from your inventory, marked as being returned to the manufacturer, and the associated payables have been canceled out. Hopefully, after reading this article, you now have a better understanding of how to return a Serialized Unit in the Lizzy Dealer Management System (DMS).
Also, we didn’t state the obvious, but you really wouldn’t do all of this at the same time. Each step could have weeks between them in reality.