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Restocking Fees? Use Auto-Misc. Charges!

Do you have rising costs with processing returned items—maybe a dedicated person to receive, put away and process paperwork? Remembering to add a fee to returned orders often can be a hassle and easily forgotten. Help manage the process by automating through miscellaneous charges. In AX 2009, return reason codes were introduced and can be flagged as a required field. Miscellaneous charges can be set up and linked to a return reason code.

Let’s walk through some examples.

A customer orders 20 cases of an item and later realizes it was the wrong item. The return order is created with a return reason code such as “ordering error,” which is eligible for a restocking fee of 2 percent. Setup will allow the 2 percent to automatically be applied to the return order. This will cut the manual intervention of remembering to add the fee to the return and also reduce time spent on the processing.

On the other hand, say we shipped 20 cases of the wrong item to the customer, who later returns it. This may have a return reason code of “picking error” and is not eligible for a restocking fee. This reason code would not be set up with a miscellaneous charge; therefore, the credit only is given back to the customer. Having miscellaneous charges set up by return reason code reduces the risk of charging restocking fees when you really shouldn’t have, which causes more manual intervention downstream when an unhappy customer asks about being charged for your mistake.

Setup looks like this:

  • Navigate to the Return Reason Code groups:  Path://Main Menu/A/R/Setup/Sales Orders/Returns/Reason Code Groups.
  • Create a Return Reason Code Group.
    • Groupings can be one “default” group or broken down further, such as in different departments using different Return Reason Codes.
  • Click Return Reason Codes.
    • Reason Codes themselves are created within a group.
  • Next, click the “Misc. charges” button.

  • The reason code will fill itself in here.

  • Click on the lines tab.
    • Select the currency and a miscellaneous charge code.
    • The category can be set to fixed or percent—in this example, the amount is 10 percent setup.
  • When a return order is created and this reason code is selected, the miscellaneous charge is automatically added to the return order.
    • The auto-misc. charge can be found by going to:  A/R | Return Orders | Setup button | Misc. Charges.

Are your users forgetting to pick a return reason code when return orders are entered? Make it mandatory!

  • Navigate to Accounts Receivable | Setup | Accounts Receivable Parameters and check the ‘Require reasons for return orders’ box.

Errors happen, and they also increase costs. Help streamline the process by using out-of-the-box functionality to reduce the need for manual intervention!

For more information or help, contact BKD’s Microsoft Dynamics AX Support Center.

This post was written by:

Kim, a senior consultant with BKD Technologies, has more than six years of experience working with Dynamics AX software. She also has Microsoft certification in Dynamics AX 2009 Trade & Logistics.

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