Have you ever been stumped by a customer needing to return a defective part, and not sure of the proper way to do it in Lizzy? Our friendly service specialist Michelle has kindly written a “how to” so that the next time a customer returns a faulty part, you’ll know exactly how to handle it in the software.
Part 1: Handling the Customer Return
Begin by doing a Parts Sale invoice for the customer. Put the part being returned on the invoice at a negative quantity. Next, add the replacement part on as a positive quantity. (This will create an even exchange if the customer is returning and getting the exact same parts.)
Once you have both parts on the invoice, you would hit “Pay Invoice” to close it out as you would any other Parts Sale invoice. If in your case, the parts are not the same & are therefore different prices, you would either give the customer money back (in the case of the new part costing less than the original) or you would charge the customer the balance remaining (if the new part costs more than the original part).
Part 2: Handling the Supplier Return
The defective part will show in-stock in your inventory until you tell Lizzy that you are sending the part back to the supplier. You might not physically return the part, but even if that is the case, you will still need to go through the steps of returning it in Lizzy so that the software can create the receivable for the vendor credit or refund you will receive.
(Note: if you are using the Returns bin, you will need to process the defective item out of the Returns bin before starting the supplier return. You can do this by going to Inventory > Process Items > Process In-Stock Items and click on the radio button for Returns Bin. Fill in your qty pulled for the defective item(s) and then click on the button “Deliver selected items to Stock Bins.”)
To return the part to the supplier, we’ll start by going to Inventory > Locate Item and locate the part that the customer returned. Click on the Green Arrow next to the Bin in the Item Bin Box.
Once you click the arrow, you will get the option to select the Supplier you’re returning the part(s) to and the quantity to return. Then once all is selected, click the button “Return Item(s)”.
To process the return and create the Refund PO, go to Accounting > Payables >Process Parts Return. Then select your supplier and add in your cost before clicking on the button to Create Refund for Selected Items.
Once the button is clicked, you will be on the Refund PO. Edit the PO and post it once any necessary changes are made. Posting the PO sends it to A/R and from there, you can enter payment from the supplier (or apply it as a credit if the supplier credits your account instead of sending a check).