Introducing Return Authorizations

Purpose: The return authorization module processes returns in three stages:

• Creating the return authorization record

• Receiving the returned merchandise

• Crediting the return

Differences from order maintenance: Using the return authorization options differs from using order maintenance to process a return, in that the stages of the return are explicit; in this way, the return authorization menu options provide you with greater efficiency and control.

You might prefer to use the return authorization module to process returns if you need different staff members in different locations to perform updates separately, or to enable staff to process returns without giving them authority to the additional functionality in order maintenance.

Secured features: A separate secured feature controls the ability to perform each step of the return process. For example, an operator might have authority to create and receive a return, but not to perform the credit.

• Enter Return Authorization (A28)

• Receive Return Authorization (A29)

• Credit Return Authorization (A34)

Standard or streamlined: The Use Streamlined Return Authorizations (F44) system control value controls whether you must perform the create, receipt, and credit as separate steps, or whether the return is automatically processed as far as your authority extends.

Return API: You can use the Generic Return API to create and process a return against an order detail line, based on a Return Request Message (CWReturnIn) received from an external system. See Generic Return API for an overview.

E-commerce interface: You can use the e-commerce interface to enable customers to create return authorizations at the web storefront if the storefront supports it. See Creating Return Authorizations from the Web Storefront.

CWCollaborate drop ship returns: If you process drop ship orders using the CWCollaborate Interface, you can also process returns through CWCollaborate, using either the order maintenance menu option, or the Work with Return Authorizations menu option. See Returning CWCollaborate Drop Ship Orders.

SmartLabel integration: You can use the SmartLabel^TM return processing from Newgistics to enable customers to use a return label, included in the pick slip, to return a package and mail it without the need to apply postage. The returned packages are automatically routed to the appropriate Newgistics facility, where they are palletized based on retailer and, optionally, entity, to streamline returns to your warehouse. See Using SmartLabel Returns Processing for an overview.

Restrictions: You cannot process an exchange if:

• the order type matches the Amazon Order Type (I22) system control value; however, you can process a return. See Amazon Order Feed for an overview.

• the Restrict Additional Lines (AL) maintenance restriction for the order type on the order is selected.

Pre-billable items: The system does not automatically refund the pre-billed deposit when you process the return of a pre-billable item; however, you can process a return against the pre-bill amount item if you have proper authority, which applies a negative additional charge against the order as a means to refund the customer. See Pre Billed Amount Item (J72) for a general discussion, and see Returning a Pre-Billable Item for more information on the refund process in order maintenance.

In this topic: This chapter presents a conceptual overview of the return authorization process, briefly discussing each stage and its effect on system files:

• Understanding the Return Authorization Process

• Standard Return Authorization Process

• Streamlined Return Authorization Process

Understanding the Return Authorization Process

Three stages: Before reviewing your different options in processing returns through the return authorization options, it is important to understand the three stages of a return. These three stages occur "behind the scenes" when you process a return through order maintenance; however, the return authorization options allow you to separate and control them.

Stage I: Creating the return: The first step in processing a return is to create the return authorization record. This occurs whenever you process a return through either Work with Return Authorizations or order maintenance; however, in order maintenance, it occurs automatically "behind the scenes." At this point, the system also writes a message to order history.

• Return or exchange: The return authorization can be either a straight return (specify a return reason code), or an exchange (specify an exchange reason code).

• Exchange item information: When you process an exchange you need to supply information about the exchange item. The Require Exchange Item at Time of Receipt (F42) system control value controls the point when you must supply this information (that is, at the time of creating or receiving the return).

• Multiple returns against an order line: You can process multiple returns or exchanges against the same order line. For example, if a customer returns one unit because it is defective and wishes to exchange another unit for a different color, you can create two separate return authorizations for the item using a return reason code and an exchange reason code. Similarly, if the customer is returning two units for two different reasons, you can create two separate return authorizations for the item using the different return reason codes.

• Returning the entire order: You can also create a return authorization against all shipped, unreturned items on the order at once.

Stage 2: Receiving returned merchandise: The second step in processing the return is to receive the returned item into your warehouse. At this point, the receipt is processed through the ORDR_ASYNC job, which updates:

• inventory for the item, including increasing on-hand in the item location and item warehouse, and adding an inventory transaction history record

• the order, including the order detail and order line history

• in the case of an exchange, adds the exchange item to the order

• in the case of a misshipped item, adds the returned item to the order

• the return authorization header and detail

Adding an exchange item to the order: When you process an exchange, adding the exchange item reopens the order if it was closed. Adding a new line causes the order to move through the normal processing routines, which may cause the order to go on hold if, for example, the exchange item has a higher price and the customer paid by check. See Releasing Held Orders.

When you add a drop ship exchange item to a return authorization which will be processed through the CWCollaborate Interface, the item will be added to the order when the drop ship vendor receives and posts the returned merchandise. The drop ship exchange item will generate a new drop ship purchase order to be sent to the vendor when you run Drop Ship Processing.

Stage 3: Processing the credit: The third and final step in processing the return is to credit the customer for the return. At this point, the credit is processed through the ORDR_ASYNC and BILL_ASYNC jobs, which update:

• the order, including order history, and creating the credit invoice and refund, if appropriate

• the return reason or exchange reason history for the offer

• the return authorization header and detail record.

Note: Refunds can be either positive (you owe the customer money) or negative (the customer owes you money).

Delivery Confirmation for Returned Items

When you credit a return or exchange and a Delivery Confirmation general ledger number has been defined for the division associated with the order, the system:

• creates an order line history record for activity V (Delivered) for the quantity of the item that has been returned or exchanged. If part of the returned quantity has already been flagged as delivered, the system creates the order line history record for the quantity of the item that has not already been flagged as delivered. In addition, the system updates the External reference number field for the order line history record with System Gen’d by Ret, indicating the order line history record was created as a result of return processing. See Delivered (V) Order Line Activity Code.

• posts the delivery confirmation to the general ledger; see Posting Delivery Confirmation.

Note: The system does not create an order line history record for activity V if the entire returned quantity has already been flagged as delivered or the return is a misship return.

Generating a CWCustomerReturn Message for Returns

The system generates a Generic WMS Customer Return XML Message (CWCustomerReturn) for a return in order to send the return information to an external system if the following is defined:

• The Use PkMS Interface Values (F31) system control value is set to Y.

• Program name IFR0086 is defined in the PkMS Return/Case Interface Program (F38) system control value.

• MQ is defined in the PkMS Transport Type (G80) system control value.

• GENERIC or GENERIC_2 is defined in the RA Program XML Message Format (H45) system control value.

When is the CWCustomerReturn message generated? The system evaluates the Send RA Message for RA Create (J57) system control value to determine when to generate a Generic WMS Customer Return XML Message (CWCustomerReturn) when you create a return through:

• the Work with Return Authorizations (WRTA) menu option; see Introducing Return Authorizations.

• the E-Commerce Return Request Message (CWReturn); see Creating Return Authorizations from the Web Storefront.

If the Send RA Message for RA Create (J57) system control value is set to:

• CREATED, the system generates a CWCustomerReturn message when an RA is created, but not yet received or credited.

• PROCESSED or blank, the system generates a CWCustomerReturn message when an RA is completely processed (created, received, and credited).

• BOTH, the system generates a CWCustomerReturn message when an RA is created and also when an RA is completely processed (created, received, and credited). However, if the return is created in one step, such as during streamlined return processing, the system generates the CWCustomerReturn message only when the RA is completed.

Regardless of the setting of the Send CWCustomerReturn for RA Create system control value, the system generates the Generic WMS Customer Return XML Message (CWCustomerReturn) when the RA is completed (created, received, and credited) when:

• you create a return through interactive order entry/maintenance.

• you create a return by entering a negative quantity on an order line if the Send RA Message for Negative Quantity in OE/OM (J58) system control value is set to Y.

• you create a return through the Return Request Message (CWReturnIn); see Generic Return API.

• you use streamlined return processing and have full authority to create, receive, and credit the return.

In addition, the system generates a Generic WMS Customer Return XML Message (CWCustomerReturn) when you delete an RA if the Send RA Message for RA Delete (J59) system control value is set to Y.

See CWCustomerReturn Message Generation Summary for more information on when the system generates the CWCustomerReturn message.

Standard Return Authorization Process

Summary: If the Use Streamlined Return Authorizations (F44) system control value is set to N or is blank, the return authorization process after you select an order consists of:

1. creating one or more return authorizations

2. receiving the return(s) as a separate step

3. crediting the return(s) as a separate step

You can perform all three steps through the Work with Return Authorization menu option. You can also perform the receipt and credit separately, using the Receiving Returns (WRAR) and Crediting Returns (WRAC) menu options respectively.

For more information:

• Selecting Orders for Return (WRTA)

• Working with Return Authorizations: Standard Process

• Receiving Returns (WRAR)

• Crediting Returns (WRAC)

Streamlined Return Authorization Process

Summary: If the Use Streamlined Return Authorizations (F44) system control value is set to Y, the return authorization process after you select an order consists of selecting one or more items to return or exchange. At this time, the return is processed as far as your authority extends. For example, if you have create and receive but not credit authority, the return is automatically created and received at this time.

Once a return authorization has been created, or created and received, by one operator, another operator with greater authority must complete the return authorization processing.

For more information:

• Selecting Orders for Return (WRTA)

• Working with Return Authorizations: Standard Process

• Working with Return Authorizations: Streamlined Process

• Receiving Returns (WRAR)

• Crediting Returns (WRAC)