Saturday, 27 December 2014

Replacement order in AX 2012 R3 (Before receiving an item which is rejected by customer)

Hello everyone,
In continuation to what we had seen in the last post (Refer link: Replacement order), in this post I will explain you the creation of replacement order before the receipt of items that are rejected by customer.

In the last post, we saw replacement order creation after the receipt of items which are returned. (To know more referhttp://theaxeffect.blogspot.com/2014/12/replacement-order-in-ax-2012-r3.html )

Replacement order is the process of replacing the items (which are rejected by customer) with the new items in order to fulfill the customer's demand.

Customer asks for replacement:
1. When an item doesn't meet the quality criteria set by the customer.
2. When an item gets damaged during transit.
3. When the wrong item send to the customer.

Business scenario:
Assume that the customer placed the order for 10 quantities of item. Company sent those 10 quantities to the customer. Those items when received at customer's place, sent to the quarantine warehouse for quality inspection. When quality inspection happened as per the quality criteria set by the customer, Quality control manager found some items defective. They informed this to their purchasing manager who then decided to return the items back to the company.

They informed the company about the same and conveyed their urgency for replacement as it is affecting their business.
In consideration to urgency and the criticality of replacement, company decided to send the replacement items before the rejected items come back from the customer.
In this scenario, replacement order will get created from the return order in AX to facilitate the replacement of items to the customer.

Other scenarios:
a. Sometimes taking the items return from the customer are costlier for the company than scraping those items at customer's place and sending the replacement for those items. (In this scenario, items which have not returned will get posted as Scrap in the system.
b. Sometimes items will get damaged (During transit) so much that it is not worth taking it back. In this scenario, replacement order will get created without receiving the items back.

Steps to create a replacement order in AX 2012 R3:
1.Go to Sales and marketing > Common > Return orders > All return orders. 








2. Click on Return order button to create a new return order.












3.Enter customer number (For which we are creating a return order), RMA number (If it is not auto-generated), Return reason code (If it is mandatory).
4.Once the return order gets created, Click on Find sales order button to select the lines from invoiced sales orders.


5.Select the lines from multiple invoiced sales order for the same customer
















6.Click ok to get those lines in the return order.

7.Once done, Replacement order button will get enabled to create a replacement order.








8.Click on Replacement order button to create a replacement order without receiving the rejected items.
















9.Create sales order form will get open, having a customer information.
10. Enter other details as per the requirement and click ok to create a new sales order.

Note:Copy return order lines checkbox should be ticked (Marked Red above) to get the return order lines in the replacement order.

11.Go to Sales and marketing > Common > Sales orders > All Sales orders.









12.New sales order will get created having same items and quantities as mentioned in the criteria specified for replacement order.
13.Now process the sales order in order to send the replacement items to the customer i.e. post confirmation, Picking list, Packing slip and invoice.

In this way, we can create a replacement order without processing the return order i.e. before even taking the items back from the customer.

Note:Return order will process separately when the items are ready for return from the customer.

Please post if any queries or suggestions to be made on this topic.

Happy Daxing!!!!

------------------------------------------------------------------------------------------------------------------------------------
Abhijeet Hele |  Dynamics AX Enthusiast | My Profile 
The information provided on this site represents my own opinion/view and does not represent the opinion/view of my employer or Microsoft.

Saturday, 20 December 2014

Replacement order in AX 2012 R3

Hello everyone, today we are going to see a replacement order in AX 2012. In this post, I will explain you the importance of creating a replacement order, need for creation of replacement order and its significance in business.

What is replacement order?
It is the process of replacing the items (which are rejected by customer) with the new items in order to fulfill customer's demand.

Reason for replacement
1. When an item doesn't meet the quality criteria set by the customer.
2. When an item gets damaged during transit.
3. When wrong item send to the customer.

Business scenario:
Assume that the customer placed the order for 10 quantities of item. Company sent those 10 quantities to the customer. These items when received at customer's place, sent to the quarantine warehouse for quality inspection. When quality inspection happened as per the quality criteria set by the customer, Quality control manager found some items defective. They informed this to their purchasing manager who then decided to return the items back to the company.

Based on the negotiation between the customer and the company, the company agreed to take the items back from the customer and decided to replace the items with the new items.

In this scenario, replacement order will get created from the return order in AX to facilitate the replacement of items to the customer.

Background
Replacement order is usually created when an item is returned and inspected. However when an item must be replaced before it has been returned or when the original items will not be returned (as it is damage badly or the returned cost is more for the company), you can create an item replacement order immediately after you create a return order. 

There are two ways to create a replacement order:
A. Replacement order after the receipt of returned items.
B. Replacement order before the receipt of returned items.

Part A:
Here in this post, we will create a replacement order after the receipt of the returned items.

Steps to create a replacement order in AX 2012
1.Go to Sales and marketing > Common > Return orders > All return orders.









2.Select a existing return order. 








Note: The return order items inventory transactions should be in registered state in order to create a replacement order for the same.

3. During registration (through the return order form or by the arrival overview) of returned items, proper disposition action needs to get selected i.e. either Replace and credit or replace and scrap. Only by selecting these actions, we can create a replacement order through return order.

Note:Before posting the return order packing slip, we need to create a replacement order otherwise system throws the below error:

















4. Once the items are registered in the system, go to return order line > Click on Return line > Click on Replacement item.








5. Select items and its specifications for replacement.
6. Select quantity for replacement in Sales quantity field per item.




















7. Click on Apply to setup a replacement order through return order.
8. After this, click on packing slip to generate the packing slip for return order.


















9. Click ok to post the packing slip for the returned order.
10.Once packing slip gets posted, system automatically creates a new sales order for sending the replacement items to the customer.
11.The sales order created will have the same items with same specifications as we have selected in replacement order setup.
12. Go to Sales and marketing > Common > Sales orders > All sales orders 










12.You can see the new sales order created for replacement.
13.After this,we can process this sales order as like normal sales order. (Post confirmation, Picking list, Packing slip and invoice)
14. This will deliver the replacement items to the customer and will have proper financial and inventory impact in the system.

Note:The return order for which we have posted the packing slip can be invoiced so that both the invoices (Replacement sales order invoice and returned order invoice) adjust the financial impact to give correct financial results against the customer.

In this way we can create a replacement order in AX 2012 R3. 

Please post if any questions or suggestions to be made on this topic.

See you all soon with the new topic.

Happy Daxing :-)

------------------------------------------------------------------------------------------------------------------------------------
Abhijeet Hele |  Dynamics AX Enthusiast | My Profile 
The information provided on this site represents my own opinion/view and does not represent the opinion/view of my employer or Microsoft.

Sunday, 14 December 2014

Vendor return / Return purchase order in AX 2012

Introduction
In this post, we will walk you through return purchase order/ Vendor return in AX 2012. Many times company want to return goods which they have received from vendor due to various reasons such as damaged product, Expired product, Wrong product etc.
In order to return goods to vendor, we create a return purchase order in AX 2012.

There are two ways to create Vendor return in AX 2012:

1. Create purchase order with negative quantity
It is useful when there is no reference to specific purchase order or Return merchandise authorization is not required. In other word, company can return any item to vendor without any negotiation or notification.
This process is same as normal purchase order process with negative quantity.

2. Create a return purchase order.
 Return order is created in reference to specific purchase order and it should be authorized by vendor i.e. vendor should provide RMA number which indicates the permit for return of goods to vendor.

Requirement
Purchase order should already be created and invoiced in order to create a return order for it.

Background
Let's assume that the inventory manager accidently found some items are damaged. He notifies the purchasing manager about the issue. Purchasing manager decides to return the damaged items to the vendor. Purchasing manager creates a return purchase order to facilitate return of goods to vendor.

Steps to create return purchase order
1. Go to Account payable --> Common --> Purchase orders --> All purchase orders.










2. Click on Purchase order button to create new purchase order.












3. Enter: 
   a. Vendor account number: It is the same vendor to whom we are returning goods.
   b. Purchase type:Select purchase type as "Returned order".
  c. RMA number:As soon as we select purchase type as returned order, we can see RMA number field appears in the form. Enter the RMA number received from the vendor which permits the return of goods to vendor. 
  d.Enter other details as per requirement.
4. Click ok to create purchase order.
       








5. Now we need to add lines in the order which we can do it manually or with the help of credit note.

Add lines through Credit note
6. Go to Purchase order form-->click on purchase order lines--> Click on credit note 
    or 
    Go to purchase order form-->go to purchase fast tab--> click on credit note.












7. Select the appropriate purchase orders and their lines. 

Note:We can select multiple purchase orders and their specific lines to get them in return purchase order. Purchase orders specific to vendor selected in the return purchase order can only be seen in credit note form.

8. Click ok to get the lines in return purchase order.

9.Here you can see line in the return purchase order with negative quantity.

Confirmation
10. Post the Return purchase order confirmation after verifying all the details.
















'

Receipt list

11. Post the receipt list for the items in the return purchase order.

















12.The status of the inventory transactions goes to Physical reserved i.e. items will get physically reserved in the warehouse to get it picked for return.




Picking
13.Unfortunately, it is impossible to create a picking task for a purchase order line (or for an output order that can be created for the purchase order line). So, we cannot use the Picking form (Inventory management > Common Forms > Picking routes). We assume that the Purchase Manager calls the Warehouse Worker and asks him to perform the picking task: pick the broken items from a specific location, transfer the broken items to the outbound location, and inform the Purchase Manager about the operation being completed. The Warehouse Worker receives this in an informal form from the Purchase Manager, because we can't create the picking instruction document in Microsoft Dynamics AX for the returned items. When the Warehouse Worker completes the picking task and informs the Purchase Manager, she or he does the following: in the lines area of the Purchase order form, click the Update line --> Pick button.







14. Click on Add picking list update button to get the items available for picking list update.







15. Click on Register all to update the picked item in the system.







.16.Once done,Issue status goes to "Picked".







17. We can see inventory transactions status is updated from "Reserved physical" to "Picked".

Product Receipt
18,We assume that the items are loaded to the truck and delivered to the vendor. When the items are delivered, the Purchase Manager posts, prints, and sends the Packing slip document for the vendor to sign. The Packing slip document is a guarantee that the vendor receives the broken items.
19. Go to purchase order --> Receive fast tab--> Click on product receipt.
20. Enter the product receipt number.

















21.Click ok to post the product receipt which is then send for the vendor to sign. 
22. Once done, we can see inventory transactions status is updated from "Picked" to "Deducted" as the items are deducted from the warehouse.





Invoice
23.The Purchase Manager posts, prints, and sends the invoice document for the vendor to sign. This document confirms that the vendor must pay (return) some amount of money for the broken items.
24. Go to purchase order -->Invoice tab--> Click on Invoice button to post the invoice for the order.












25. Enter the invoice number and click on Post button to post the invoice for the order.
26. Once done, invoice will send to vendor for signature. It confirms that the vendor must pay for broken items.
27. Go to inventory--> Transactions-->The status is updated from "Deducted" to "Sold"




Note:The invoice document which is generated has the title "Credit note". To view the credit note report, go to purchase order form-->go to Invoice tab--> Click on invoice journal-->click on Preview/Print -->Click on original preview/Copy preview.

In this way, we can create a Vendor return / Return purchase order in AX 2012.

Please post if any queries or suggestions to be made for improvement.

See you soon with new topic :-) Happy Daxing.

Sunday, 7 December 2014

Arrival overview for Return order in AX 2012

Introduction
Arrival overview form improves the overview of the items expected to arrive as incoming goods. It provides an overview of all expected incoming items and arrival can be initialize based on the overview.

Here in this post, we will initiate the return of the goods through arrival overview process.


Background
Once the RMA is created, we send the return report to the customer consisting of details of items which company agreed to take back.
At this stage the Arrival overview comes into picture. It provides an overview of items which will come as return from the customer. At this stage we can initiate item arrival process.

Path
Inventory and warehouse management --> periodic --> Arrival overview.

Return order arrival overview
1.Create a return order for all or for some specific items in the customer invoices with some specific quantity as agreed to the customer.
2.Send a return report to the customer as an information that the company only permits the return of goods specified in the return report.
3.After this,go to Inventory and warehouse management --> Periodic --> Arrival overview.
4.Arrival overview form will show all the expected incoming items for all the orders such as return orders, transfer orders, production orders, purchase orders, quarantine orders etc.
5.In order to filter by return orders, select "Return order" in Setup name field in the overview form.

Note: Return order checkbox should be ticked in the arrival overview--> Setup tab--> Return orders to get the return order in the arrival overview form.

6.We can also filter the return order lines by All, In progress (It means the arrival process is in progress) and not complete (It means arrival process has not yet started)
7.For the new return order, select Not complete in Show lines field.
8.If there are multiple new return orders, we can filter the specific return order by its number.











9.Ticked the Select for arrival checkbox to select the return order lines for arrival.
10.Click on Start arrival button. (It will create an item arrival journal with the currently selected lines)






















11.As the arrival process is started,items are started arriving in the warehouse.
12.Click on journal --> click on show arrivals from lines.










13. It will redirect you to item arrival journal.
















14.Click on lines to check the items which are arriving at the warehouse.








15. Enter the disposition code against the item to indicate the action which is going to take once item is arrived.
16. Once all the items are fully arrived, validate and post the journal in order to register the items in the system.
17. Validate the journal





















18.Post the journal




















19.Once the journal is posted, the inventory status goes to registered state.




20.When the items are registered in the inventory,it's time to post the packing slip in order to update the physical cost of the items.
21.Go to arrival overview--> click on Journals--> click on Product receipt ready journals.










22.Item arrival journal will open.

















23.Click on Function --> click on Product receipt returned in order to post packing slip.


















24.Till this step, we can use arrival overview process in the return order.
25. At last we can post the invoice for return sales order from the sales order form,

Summery
Arrival overview form can help the warehouse manager and warehouse worker to achieve an overview of expected return and work to be done for it. It also start the arrival overview process to make sure items are tracked at the first entry into the warehouse.

Happy Daxing !!!!! See you soon with the new topic.

------------------------------------------------------------------------------------------------------------------------------------
Abhijeet Hele |  Dynamics AX Enthusiast | My Profile 
The information provided on this site represents my own opinion/view and does not represent the opinion/view of my employer or Microsoft.

Sunday, 30 November 2014

Return order in AX 2012 R3

Today, I am going to introduced you to return sales order process in AX 2012. Hope !! it will give you more insight on the way to return goods from customers in AX

Return order:
Return order is the process in which customers return items that they have purchased.

Example:
Customer might return items if it is defective or if it was received incorrectly. You need to create a return order in ax before receiving items back from the customer.



Steps to create Return order in AX 2012:

1. First step is to find invoiced sales order against which return order is getting created.
.












2. You can see above sales order which has quantity 1 which is already delivered to the customer and invoice is also generated for the same.

3. Sometimes due to incorrect items received or due to some defects in the item, customer want to return it to the company.

4. Before returning the items, we need to create a return order in AX for proper financial and inventory updation in the system.

Note: Sales order should be in invoiced state to create return order.

 5. Go to Sales and marketing --> Common --> Return orders--> All return orders









6. Click on Return order button (Marked red above) to create new return order.













7. Add the following information:

  a. Customer number:- it should be same as the sales order customer number for which we are creating a return order.
  b.RMA number: It is a return material authorization number. It is a numbered authorization provided by the company that permit the return of the goods from the customer.
 c. Return reason code: These are codes which are specified in the system against the possible reasons for return of goods from the customer as per company's policy.

Note: Some companies have some policies concerning return. For example,some companies only allow defective product for return. In such case we can make it as reason and make the return reason code mandatory so that system only take defective product as return.

d. Other details: Enter other details as per requirement.

8. Click ok.











Find sales order
9. Click on Find sales order to create return order lines with respect to customer invoice.
















Note: The invoices posted against the customer will come in the find sales order form. We can select one or multiple invoices and in each invoice, we can select one or multiple lines which will come in the return order.

10. We can also edit the quantity in the particular line in case we don't want full return.
11. We can also specify the reason code for correction in the invoice which we are selecting.
12. Click ok.










13. You can see a line will get created in the return order with negative quantity as we are going to receive item back.

Print Return order
14. Now the next step is to print the return order which is then send to the customer. The RMA number is printed in the return report as well as the return reason code if it is mandatory. It tells the customer that the company is agreed to receive the mentioned items with the quantity specified.











Note: Upto this step, the return order status is "Created".

15. After this items will get received from the customer. There are two ways we can update the system with this arrival.
    a. Post the registration
    b. Perform the arrival overview.

16. Here in this blog, we will explain the receipt of the items by registering them in the system.

Note: In the subsequent post, I will walk you through the Arrival overview process for return order.

Registration:
17. In order to post the registration for the items which we are receiving, go to Update line--> Registration


Note:
Disposition code: We specify the codes in the system against the list of actions which we are going to perform with the inventory received and with the customers.

18. Enter the disposition code--> Click ok.

















19. Registration form will get open.








20. Click on Auto-create. (It avails the quantity per item for registration)
21. Click on Post all. (It will register the quantity in the system)









22. Once done, the Receipt status goes to "Registered" for the items.(See below)









23. Close the registration form as the return items are now registered in the system.

Note: After the registration, the return status of the return order changes to "Open"

Acknowledgement
24. Once items are received back,its time to send the acknowledgment to the customer.
25. Print the Acknowledgment and send it to the customer as a confirmation for the items received by the company.










Packing slip:
26. Now the next step in the return order is to post the packing slip.










Note: Packing slip will get posted in the return order in order to register the financial impact of the received items in the system.


















27. Click Ok to post the packing slip.

Invoice
28. Now the last step is to post the invoice for the items which we have received from the customer.

Note: We cannot post the return sales order invoice from the return order form in AX.

29. Go to Sales and marketing--> common--> Sales orders--> All sales orders.

Note: We can get the return sales order number from the return order form. Go to above path and filter by the return sales order number, we can see the sales order with the order type as "Returned order".(See below)










30. You can see order in Delivered state as packing slip is already posted for the return sales order from the return order form.

31. Select the order and click on Edit.

32. Go to the invoice tab--> click on Invoice button.













33. Click Ok to Post the invoice for the order.


















34. You can see invoice journal is posted after the invoice posting.













Note: Once invoice is posted for the return sales order, the Return status for the return order changes to "Closed" state.










In this way,we can run a Return order cycle in AX 2012.

Please do let me know if any queries or suggestions to be made pertaining to this topic.

See you soon with the new topic..

Happy Daxing!!!!

------------------------------------------------------------------------------------------------------------------------------------
Abhijeet Hele |  Dynamics AX Enthusiast | My Profile 
The information provided on this site represents my own opinion/view and does not represent the opinion/view of my employer or Microsoft.