Linked Returns
Returns linked to a source transaction include:
-
Return Authorization from an Invoice
-
Return Authorization from a Cash Sale
-
Cash Refund from a Cash Sale
-
Vendor Return Authorization from a Purchase Order
-
Vendor Return Authorization for Drop-ship Orders
NetSuite permits changing quantities on returns. You can increase or decrease the quantity, and change the units as needed.
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Returning fewer items - When you return fewer items, the rebate amount per unit reflected on the source transaction is multiplied by the number of returned items.
-
Returning more items - If you increase the quantity on the same transaction line upon return, the rebate amount per unit is multiplied by the total number of returned items. Additional items entered using a new transaction line are not eligible for rebates.
-
Returning the same number of items- If you return items with the same quantity as the original transaction, the applied rebates do not change.
For example, the Case to Each conversion is 1:4, there are four Each in one Case. The first table shows an invoice data with items associated to three different rebate agreements, and the accrual amount:
|
Line # |
Item |
Quantity on Invoice |
Unit |
Rebate Amount |
Total Rebate Amount |
Rebate Agreement |
Accrual Amount |
|---|---|---|---|---|---|---|---|
|
1 |
Item A |
5 |
Case |
$100 |
$500 |
Agreement #1 |
$500 |
|
2 |
Item B |
5 |
Case |
$200 |
$1000 |
Agreement #2 |
$1000 |
|
3 |
Item C |
5 |
Case |
$250 |
$1250 |
Agreement #3 |
$1250 |
|
4 |
Item D |
5 |
Case |
$400 |
$2000 |
Agreement #4 |
$2000 |
In the return authorization, the item quantities are changed, so the total rebate amounts and settlement amounts are adjusted accordingly.
|
Line # |
Item |
Quantity on Invoice |
Unit |
Rebate Amount |
Total Rebate Amount |
Rebate Agreement |
Accrual Amount |
|---|---|---|---|---|---|---|---|
|
1 |
Item A |
2 |
Case |
$100 |
$200 |
Agreement #1 |
$300 |
|
2 |
Item B |
7 |
Case |
$200 |
$1400 |
Agreement #2 |
-$400 |
|
3 |
Item C |
5 |
Case |
$250 |
$1250 |
Agreement #3 |
$0 |
|
4 |
Item D |
10 |
Case |
$100 |
$1000 |
Agreement #4 |
$1000 |
A reversal journal entry is posted to the accrual record after the post-settlement transactions are created. You get the net amount of the settlement value when reversal entries are combined with other accrued rebates. For more information, see Rebate Accruals.
If the settlement amount is a positive value, the settlement method specified on the rebate agreement is used. But if the amount turned negative, NetSuite generates an alternative settlement transaction. For more information, see Settlement Methods.