We’ve had a number of questions recently regarding how to efficiently use the PO returns functionality in GP – particularly how to choose the right Return Type. The selection of the return type is dependent on the type of receipt that you are planning to return. For example, if you are returning product to a vendor that a customer returned to you then you would choose one of the Inventory types. If you are returning a receipt that was created from a PO receipt then you would choose one of the Return types. A quick look at the Inventory Receipt inquiry window will help in that first step. There are four types of returns transactions and the following tips will help you decide which one to use:

Generally, you would choose “Returns” if the product just arrived and upon inspection it was determined to be defective and needed to be immediately returned. In order to use the “Return” type all of the following must be true:

• The inventory was received against a purchase order and
• The vendor invoice has not yet been enter/matched and
• The inventory has not been transferred out of the Location ID where it was first received and
• The inventory is on-hand and available (ie not allocated to a Sales Order)

Use “Returns with Credit” for the same reasons as above except that the invoice has already been received. In order to use “Return with Credit” the following must be true:

• The inventory was received against a purchase order and
• The vendor invoice has been enter/matched and
• The inventory has not been transferred out of the Location ID where it was first received and
• The inventory is on-hand and available (ie not allocated to an Sales Order)

The “Inventory” Return Type is probably the least commonly used return type but could be used when the inventory is received and quickly transferred to another location ID but the invoice has still not arrived. To use “Inventory” the following must be true:

• The inventory was received against a purchase order and
• The vendor invoice has not yet been entered/matched and
• The inventory has been transferred out of the Location ID where it was first received and
• The inventory is on-hand and available (ie not allocated to an Sales Order)
• OR if you don’t require a credit and the inventory is on-hand and available

“Inventory with Credit” is the least restrictive return type as the only requirement is that you have the inventory and if it’s linked to a PO receipt, it’s been paid. To use the Inventory with Credit type, the following must be true:

• If the receipt is PO receipt then the vendor invoice must be entered/matched and
• The inventory is on-hand and available (ie not allocated to an Sales Order)