For vendor chargebacks in the Service module, see the Vendor Chargeback
Method field in the Service
Control Settings.Use the Vendor Chargeback feature to charge defective merchandise back to vendors. You
define the merchandise to charge back (at which time you can update the status to As-Is if the piece is not already defined as an as-is piece),
update the costs and selling prices, and
create a debit AP bill or a post to Vendor Receivables.
For vendor chargebacks in the Service module, see the Vendor Chargeback
Method field in the Service
Control Settings.
You use the Vendor Chargeback tab on the Enter a Stock Adjustment routine. You
identify the chargeback item by serial or reference number, then
perform the cost markdown by either dollar amount or percentage to arrive at the new retail price. You
specify a reason for the chargeback. The system sets the item to As-Is status (that is, for items not already set to As-Is).
Finally, you assign to the product either a debit AP bill or posting to Vendor Receivables for the item’s vendor.
Use the Vendor Chargebacks tab in the Enter a Stock Adjustment routine to perform vendor chargebacks. To access this tab:
you must have access to this tab via the Create a User file or the Create a User Group file,
the product being adjusted must have quantity on-hand and as-is quantity in the specified location, and
the product being adjusted cannot be a bulk item.
Reason Code – The Vendor Chargeback process requires you assign a reason code to the item being adjusted. If you assign one reason code primarily, you can specify it here so that it appears as the default on the Vendor Chargeback tab.
Selling Price Recalculation Percent – Use this field to reduce the cost of the chargeback item by a specified percentage and thus suggest a new selling price (via the New Selling Price field in the Enter a Stock Adjustment routine). Users can override the new selling price.
Vendor Chargeback Method – Use this field to define a preferred chargeback method. You have the following options, and your selection appears on the Vendor Chargeback tab.
- None Selected
- Debit Payable
- Vendor Receivable
Vendor Chargeback Adjustment – Use this field to create a GL account you can differentiate from normal inventory adjustments. Vendor Receivables uses this account when the transaction code ‘VCB’ is passed.
Not Available for Sale – Use this field to prevent as-is items with a specified reason code from being added to a sales order/exchange.
Enter vendor charge-back adjustments – Use this field to restrict users from entering vendor charge-backs.
Enter vendor charge-back adjustments – Use this field to restrict user groups from entering vendor charge-backs.
For items being charged back, the system:
moves pieces not already in As-Is status to As-Is status,
updates the item's Reason Code with the reason (if any) for changing the status,
performs a bin-to-bin transfer if a new location is specified, and
updates the Costing Table. The system splits the item from its original layer, changes the layer cost, and recalculates the average cost, and then
creates a debit voucher or posts to vendor receivables, depending the Chargeback method selected. Finally, the system
adjusts the landed cost accounts (freight, addon1, and addon2 if applicable) based on item's markdown percentage.
The Sellable column displays the setting of the Not Available for Sale field in the Reason Code Settings for each item in the display.
The Sell column displays the setting of the Not Available for Sale field in the Reason Code Settings for each item in the report. Sellable items are marked by a 'Y' in this column. For non-saleable items, the column is blank.
To include vendor chargebacks in the report, check the appropriate box.
The system uses the transaction type ‘VCB’ to identify vendor chargebacks.