How to Process a Purchase Return in Sage X3

In the world of business, not every transaction goes as planned. There are times when a product needs to be sent back to the supplier. This is known as a purchase return. It's an important part of managing a business because it helps keep everything running smoothly. Whether it's due to a product issue, an ordering mistake, or something else, knowing why and how to return the items is key.

In this blog post, we'll walk through the steps for processing a purchase return in Sage X3. We will also cover how to reopen the originating purchase order for a new receipt of goods and how to issue a credit memo if needed.

Issue Rules:

Issue flow management rules issued for a product's category, or the stock management rules, determine the stock movement and set default parameters for locations and permissible statuses for a return, among other details. For instance, the management rules might stipulate that products are eligible for return only if they are marked with the 'rejected' status.

To enter a purchase return follow these steps:

1. Go to Purchasing > Purchase Returns > Returns
2. Click New
3. Select the Return Site, Supplier, and Buyer as well as enter the return date.
   
4. Click on the ‘Receipt Selection’ drawer from the left list. From here you can select the receiver that you are returning to the supplier.
   
   
5. You can select the lines from the left list and they will display in the grid.
   

   ** If you are returning an item that did not originate from a PO receipt you can select the product in the grid and enter it manually**

6. Update the Quantity being returned and the return reason as needed.

   ** You cannot enter a return quantity greater than the original receipt.

   ** The return quantity cannot exceed the available stock on hand.

7. Click the Action button for the line and select ‘Popup View’ to enter the line details.
   
   
8. Select one of the ‘Reinstatement’ field options:
    
   1. No: the return quantity will not be re-submitted to order,
   2. Yes, same line: the return quantity will be transferred to the order line that generated the stock receipt. The purchase order will then pass to the partially delivered status and will be re-submitted for picking to initialize a stock receipt line (to the level of the quantity previously returned).
   3. Yes, other line: The return quantity will be transferred to the order that generated the stock receipt. An additional line will then be created in the order,
   4. Yes, other order: A new purchase order will be automatically generated on validation of the return to the level of the quantity of the elements returned to the supplier
9. Select Yes or No from the ‘Gen. credit memo’ dropdown:
    
   1. If the returned goods are already invoiced, the field defaults to Yes; otherwise, it defaults to No.
   2. Yes: A credit memo will be created from the purchase return
   3. No: A credit memo will not be generated.
      
      
10. Once the line is entered, X3 will determine what stock to issue. To modify the stock option, you can select ‘Stock issue’ from the line’s action item.
11. Once you have finished entering the return you will click the Create icon. Once you click the ‘Validation’ button, you will no longer be able to make changes to the purchase return.

In summary, effectively processing a purchase return involves a structured approach that begins with identifying the reason for the return, ensuring that the items are sent back correctly, and making sure Sage X3 has updated the purchase order as needed.