Based on the processing costs in your warehouse, you can decide if returning an item to your general inventory when returned from a customer, is cost effective. You set an economic return amount either by price line or by product. If the value of the item being returned falls short or below this amount, the system recommends the item not be returned to inventory because the processing costs outweigh the actual value of the item.
If the cost is greater than or equal to the economic return amount, the system indicates that it is economical, or in your best business interest, to return the product to your normal warehouse stock. Otherwise, the system indicates that you should not return to the item inventory.
Using your purchasing experience, you can set up the economic return information at either the product or the price line level. The system checks settings at the price line level first and if none are set, checks the product level. Settings in Product Price Maintenance take precedence over data entered in Price Line Branch Data Maintenance.
Use the Returned Goods Queue to evaluate whether to keep the item or dispose of it. In the Return Code view of the queue in the Is Economic field, the system displays a green check mark if the product meets the requirements for keeping it in stock or a red X if it does not meet the requirements, and that you should not return to the item inventory.
To set up economic return information at the price line level:
From the Maintenance > Price Maintenance menu, select Price Line to display the Price Line Maintenance window and display the price line.
From the Edit menu, select Branch Data to display the Price Line Branch Data Maintenance window.
Find the branch or territory for which you want to set an economic amount for the price line.
To set the same economic amount for all, find ALL at the bottom of the table. Use the Edit > Toggle Hierarchy option if ALL does not display.
In the Economic Amount column, enter the amount below which the system recommends not returning items to inventory.
Save your changes and return to the Price Line Maintenance window.
To set up economic return information at the product level:
From the Maintenance menu, select Product to display the Product Maintenance window and display the product.
From the Inventory menu, select Primary Inventory Maintenance to display the Primary Inventory Maintenance window.
From the Edit menu, select User Controls to display the Product User Control Parameters window.
Do one of the following:
From the File menu, select Hierarchy to display the Product User Control Parameters dialog box. In the Enter hierarchy branch field, enter the branch or territory ID.
From the File menu, select Add Branch. In the Enter Branch, Territory or All field, enter the branch or territory ID you want to view.
To set the same economic amount for all, find ALL at the bottom of the table. Use the Edit > Toggle Hierarchy option if ALL does not display.
In the Economic Amount column, enter the amount below which the system recommends not returning items to inventory.
Save your changes and return to the Price Line Maintenance window and save the price line.
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