Use this section to add and define items that will be returned after being purchased by your company, due to occurred issues.
Items section comprises two tabs, the Goods tab, and the Services tab.
Under the Goods tab, you can add one or multiple goods (items of the item types Inventory, Fixed assets or Non-inventory) you want to return and enter information about them. Also, you have to specify shipment terms for those goods and select a warehouse from which you plan to return the added goods. To define shipment terms and provide warehouse information for goods to be returned, you have to fill in the following fields:
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Field/Option
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Used for
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Warehouse
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Select a warehouse from the list of warehouses from where you intend to return purchased goods.
- The warehouse is provided automatically once you select a purchasing manager being retrieved from the manager's employee record created in the Employee directory. It is a warehouse set as a default warehouse to which the manager (an employee who performs duties of a sales or purchasing manager) allocates purchased goods. If no specific warehouse is assigned to the selected purchasing manager or no purchasing manager has been specified in the document, the default warehouse defined in My company settings will be provided in this field when you save the document. Still, you can select an alternative warehouse instead of one that is assigned to the purchasing manager if necessary.
- It is a required field if at least one item has been added. In this case, if you delete this autocompleted warehouse and do not select an alternative one, you will not be able to save the document.
- If multiple warehouses are not allowed in the system (Multiple warehouses option is turned off in My company settings), the Warehouse field will not be displayed on the form. All reservations or reduction of in stock quantity of goods will take place for the default warehouse selected in My company settings. For more details about defining inventory management settings, see My Company Settings: Inventory Tab.
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Incoterms
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Select the Incoterms which are relevant to your business situation. The selected Incoterms are copied to subsequent purchase documents created based on the initial purchase quotation.
- Incoterms that the given vendor usually uses are provided automatically once you select the vendor being retrieved from the vendor record created in the Company directory. However, you can change the autocompleted Incoterms if necessary.
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Destination
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City to which goods have to be transported if they are returned by your company. The selected destination city is copied to subsequent purchase documents created based on the initial purchase quotation.
- Destination to which goods are usually delivered by the given vendor is provided automatically once you select the vendor being retrieved from the vendor record created in the Company directory. However, you can change the autocompleted destination if necessary.
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Method of delivery
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Select a method of transporting goods from your company or other desirable location from the list of delivery methods added to the system or create a new method of delivery. The selected method of delivery is copied to subsequent purchase documents created based on the initial purchase quotation.
- Method of delivery that is usually used by the given vendor is provided automatically once you select the vendor being retrieved from the vendor record created in the Company directory. However, you can change it if necessary.
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To add a service or services, go to the Services tab, add a new service (items of the item type Service) and enter details about it. No warehouse or shipment terms have to be selected for services, as they are not subject to inventory management and are rendered, not shipped. Thus, the mentioned above fields are absent under the Services tab.
You add both goods and services as a line item.
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Goods (pic)
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Displays the total number of line items added under the Goods tab.
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Services (pic)
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Displays the total number of line items added under the Services tab.
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The line item is a line structure that contains an item and item details. The line item is comprised of a number of fields, such as quantity, price, net amount, and so on.
Line item fields are almost identical for goods and services, except for some fields present for goods are absent for services.
To add a new line item, click the +Add new button above the table used for listing added line items.
If you add a line item, you have to fill in all required fields of this line item to be able to save the document. If you fail to fill in all required fields, you can also delete the line item to be able to save the document.
Note: You can add items to the debit note either manually or automatically. In either case, items are added as line items.
To add items and their details automatically to your debit note:
- Select a return purchase invoice.
- Click the Fill from return invoice button.
As a result, items and their details are retrieved from the selected return purchase invoice and copied to the debit note. Nevertheless, you can edit the information provided and override it, if necessary.
Line Item Fields
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Field
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Used for
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Goods/Services
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Select a purchase item (good or service) from the list of previously created items or create a new one.
If you select an item from the list, certain item details will be provided automatically as the system will retrieve the relevant data from the respective item record, a base price list for the item and other related documents.
- It is a required field. If you do not select an item, you will not be able to save the document.
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Unit
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A unit of measurement, whether it is a piece, a kilogram or a liter, etc.
- A base unit of measurement specified for the item is provided automatically.
- If several units of measurement are defined for the item forming the item's set of measurement units, you can select a unit from the set that is most suitable in a particular case. However, this unit will be used only for displaying quantities in the document, all inventory and accounting transactions will use the base unit of measurement into which the selected alternative unit will be converted according to the specified conversion ratio.
- It is a required field. If you delete the unit and do not select an alternative one from the set, you will not be able to save the document.
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Available
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The total quantity of the item that is available for return. It is the quantity of the item you currently have in stock and expect to return to vendors excluding the reserved quantity.
- This quantity is provided automatically and you cannot override it.
- If you select an alternative measurement unit for the item, the total quantity available for return will be automatically updated.
- The field is absent for services.
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Quantity
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A number of items you want to return.
- The quantity is defined for the selected unit of measurement.
- Quantity for purchase can exceed the number of items available for return.
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Price
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The price of one item defined for the selected unit of measurement. The price is set in the currency of the document.
- The price is retrieved from a price list containing the most recent item price in the currency of the debit note. However, you can change this price if necessary. For more information about price lists, see Price list.
- The price is either VAT inclusive or VAT exclusive depending on whether the Price includes VAT option is turned on or turned off. When you activate or deactivate this option, the price is recalculated.
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Net amount
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Field is computed automatically by the system.
Net amount - the total price of the returned goods or services excluding VAT charges.
- If the price for one returned item includes VAT, the net amount is calculated in the following way:
Total amount / 1 + VAT rate (percentage)
- If the price for one returned item is VAT exclusive, the calculations are the following:
Price x Quantity
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VAT
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Select a VAT rate that is set by the vendor for the item.
VAT rates are retrieved from the VAT rate directory. Depending on the selected item, the standard rate, reduced rate or an exempt rate is suggested automatically if you purchase goods/services within the country of your registration (domestic acquisition). If you purchase goods/services from VAT-registered businesses in other EU and non-EU countries, the export rate is automatically selected. If your vendor is not registered as a VAT payer, the No VAT type is selected. However, you can change any of the auto-completed rates if necessary.
- It is a required field. If you delete the auto-completed rate and do not select an alternative one, you will not be able to save the document.
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VAT amount
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It is the computed field.
VAT amount - VAT contained in a total amount which is inclusive of VAT.
- If the price for one item includes VAT, the VAT amount is calculated in the following way:
Total amount - Net amount
- If the price for one item is VAT exclusive, the calculations are the following:
Net amount x VAT rate (percentage)
- The field is unavailable if VAT functionality is not activated in the system (the Use VAT option is turned off in My company settings, VAT tab).
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Total amount
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Field is computed automatically by the system.
Total amount - the total amount of line items goods or services in the specified currency including VAT.
- If the price for one item includes VAT, the total amount is calculated in the following way:
Price for one item including VAT x Quantity
- If the price for one item is VAT exclusive, the calculations are the following:
Net amount + VAT amount
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Note: Although net amount, VAT amount and total amount are computed automatically based on the price and quantity indicated as well as on the selected VAT rate, you can override the computed values triggering the update of other values.
Advanced mode line item fields
Not all line item fields are displayed by default. To enable such fields, you have to turn on the extended mode for line item by clicking the More button above the list of items.
On enabling the extended mode, the following fields appear:
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Field
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Used for
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Inventory Account
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The field displays an inventory account in which the cost of the returned items to be returned is recorded. If the returned goods are in stock, the inventory account is credited with the cost of items to be returned. If the returned goods are out of stock, no transaction is made to the inventory account and the transit account is credited with the cost of items to be returned instead of the inventory account.
The account is provided automatically based on an inventory account assigned to the item being retrieved from the item record created in the Item directory.
- The field is absent for services.
- It is a required field. If you delete the auto-completed account and do not select an alternative account of the same type, you will not be able to save the document.
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Expense account
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Bookkeeping account that expenses on the returned items belong to.
- The field is absent for services.
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Warehouse section
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A warehouse section in the specified warehouse from which goods are to be returned.
- It is an auto-completed field. A warehouse section set as a default warehouse section of the selected warehouse is suggested in this field. Still, you can select an alternative warehouse section instead of the default one if necessary.
- The field is unavailable if the creation of warehouse sections for warehouses is not allowed in the system.
- The field is absent for services.
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In stock
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The total quantity of the item stored in the selected warehouse or warehouse section as of the document date.
- Quantity for sale can exceed the in stock quantity (even if the in stock quantity equals zero) if negative balances are allowed in the system. Otherwise, if you try to sell items that are not in stock, you will receive an error message while trying to post the document.
- The field is unavailable for editing, you can only view the indicated amount being retrieved from the Inventory journal.
- If you select an alternative measurement unit for the item, the total quantity available for sale will be automatically updated.
- If you select an alternative warehouse section, the total quantity available for sale will be automatically updated.
- The field is absent for services.
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Expected
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Displays the quantity of the item that is expected to be received from a vendor in the future based on an open purchase order.
- The field is uneditable, you can only view the indicated amount being retrieved from the open purchase orders.
- If you select an alternative measurement unit for the item, the expected quantity will be automatically updated.
- If you select an alternative warehouse section, the expected quantity will be automatically updated.
- The field is absent for services.
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Reserved
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The reserved quantity of the item.
- Reserved items are not available for sale unless you enable the sale of reserved items in My company settings. Then, a number of goods you offer for sale can exceed the number of items available for sale, and such accounting transaction will be accepted by the system.
- The field is uneditable, you can only view the indicated amount being retrieved from the open sales orders.
- If you select an alternative measurement unit for the item, the reserved quantity will be automatically updated.
- If you select an alternative warehouse section, the reserved quantity will be automatically updated.
- The field is absent for services.
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Discount %
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Discount rate. A percent of an original price by which the item is discounted.
- Discount rate specified by the given vendor. However, you can change it if necessary.
- If you change the discount rate, values in the fields Discount amount, Net amount, VAT amount and Total amount will be recalculated and updated.
- The field is unavailable if the use of order discounts in invoices is not activated in the system (the Order discounts option is turned off in My company settings, Preferences tab).
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Discount amount
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Amount that is taken off of the item price. It is calculated according to the specified discount rate.
- You can enter the discount amount manually. Then, values in the fields Discount rate, Net amount, VAT amount and Total amount will be automatically recalculated and updated.
- The field is unavailable if the use of order discounts in invoices is not activated in the system (the Order discounts option is turned off in My company settings, Preferences tab).
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VAT rate, %
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Displays VAT rate (in percentage) according to the chosen VAT type. The field is unavailable for editing and cannot be overridden.
- The field is unavailable if VAT functionality is not activated in the system (the Use VAT option is turned off in My company settings, VAT tab).
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