Page 25 - SALES QUIDE QUICK REF RON

SPECIAL ORDER RETURNS

ALWAYS use the original SO-Special Order item number that Spruce
created at the time you ordered the item.

IF an item is received damaged, understand this:
 When an item has been delivered to the store and it has been damaged, we will still be ‘invoiced’ for
it by the vendor!
 The same is true if the item is shipped wrong…. wrong color, wrong size, etc. We still have to
receive the item and then return it for credit.
 Our vendors are just like us… the minute the item is shipped, the customer (us) is immediately
invoiced or billed for ALL items on that packing slip.
In most cases, you will have to re-order to get the correct item!
 YOU will have to create a NEW customer order and a NEW purchase order for the replacement. Do
NOT use the same or original SO SKU numbers. Create all new SO SKUs to save confusion in
your back room when trying to track inventory!
 You MUST understand that once you call the vendor, you are placing another order that will have to
be received. That means there will be a new ‘invoice’ from the vendor that we will have to process.

WARRANTY ISSUES
There are times when replacement parts for an SO item need ordered and there will be NO CHARGE
to the customer. Same applies if the complete item is to be replaced.

Even in these situations, Gillman Home Center will be invoiced in full for the parts or the replacement item.
Then the vendor will issue credit later after we return the defective item.
 These are two separate receiving documents that will possibly be created! FIRST to receive the new
item and SECOND if you have to return the original SO item for the credit.
 The original SO SKU should never be used to re-order. It could contain the cost of the entire item
and you might only replacing part of that item. This cost could be significantly less.

For warranty instances we have created a SPECIAL ORDER SKU: VENDORCREDIT
 Alternate SKUs include… VC WARRANTY or WARR (Same SKU, just easier to remember)
 This will act just like any other Special Order SKU.
 Every time this SKU is used, the following message line will appear automatically on the document
at the end of your description: << WARRANTY >> Vendor Credit submitted.
NO CHARGE to customer is to be made.
REASON: The Central Office will know why this transaction occurred at no charge!

The same as any other Special Order… ALWAYS start with creating a Customer Order!
 Create the CO on the customer’s regular account or use your ‘sales’ account like usual. This way
everyone will know who the order belongs to.
 As normal, you will be creating the PO at the same time.
 Just like any other Special Order, this item(s) will have to be ‘Received’ into inventory in the back
room when it arrives.
 Because credit from the vendor usually is issued in the future, ‘receive’ this at the correct
cost. This receipt can then be matched with the invoice.
 On this same purchase order OR when the receipt is created, make an ‘F6 Adjustment’
(CREDIT VNDR) for the total expected credit amount. NOTE this ‘Adjustment’ can be
added to the PO immediately by YOU in Purchasing/Order Entry. This entry ‘removes’ the
cost of the replacement item… makes the effect on your margin ZERO!

 Obviously the retail on this item will be ZERO, it will have a cost. But that CREDIT VNDR
adjustment ‘washes’ out the cost! With the VC message at the end, the Central Office will instantly
know what’s going on and why.
 When the item is given to the customer or delivered, it still needs to be ‘Invoiced’ out just like
any other customer order.

Following these steps will leave your on-hands at ZERO.
307 SO Vendor RETURNS UPDATED Page 1 of 3
June 28, 2019