Unannounced Sales Returns in Dynamics 365 Finance and Operations

UNANNOUNCED SALES RETURNS

CONTENT Introduction Return details Receive unannounced returned item by the return details Mixed license plate receiving Blind returns Receive unannounced returned item by blind return  Mixed license plate receiving  Required configurations Blind return demo

Introduction

In Microsoft Dynamics 365 Supply Chain Management, the sales return process typically begins with the creation of a Return Material Authorization (RMA) order. The RMA order is crucial for managing returns, particularly when the reason for the return is unclear or not immediately disclosed. It serves as the central document guiding the subsequent steps in the return process, including warehouse arrival and receiving procedures.

However, there are instances where customers may return products without prior notice or an associated order. In such cases, the standard RMA process is bypassed, requiring special handling to manage these unplanned or unannounced returns.

This article will walk you through configuring Supply Chain Management to handle unannounced returns and the procedures for receiving these returns in the warehouse. 

For example, if a customer arrives at the bay door wanting to return an item without having a return material authorization (RMA), it’s considered an unannounced sales return.

This can be handled in 2 ways.

• Return details
• Blind returns

RETURN DETAILS

In this scenario, the customer doesn’t need to contact the seller; simply bringing the RETURN LABEL or providing the RETURN DETAIL ID created at the time of order shipment is sufficient. The RETURN LABEL or RETURN DETAIL ID contains the necessary return details (return ID, original order ID, shipment ID, order lines, return until dates) required to process the return.

A return detail record can be created in two ways:

• Order creation > Order shipment > Packing > Return label creation via the small parcel shipment process
• Order creation > Order shipment > Shipment confirmation > Return details creation

In summary, each shipment process can create either a return label (if containerization is used) or a return details ID with an expiration date (if the expiration date is set up).

Receiving Unannounced Returned Items by Return Details

Assumption: The customer already has the return details.

1. Open the Warehouse Management mobile app.
2. Select Return Details Receiving (You'll need to create menu/menu item first).
3. Scan the Return ID.
4. Scan the Item ID.
5. System generates a License Plate (LP).
6. Enter the Quantity.
7. Select the Disposition Code.

Please note that a "Work Completed" message will appear.

Important: Do not forget to click CANCEL to release the flow and complete the process.

All unannounced returns will go to the Mixed License Plate Receiving screen.

Mixed License Plate Receiving

1. Go to Warehouse Management > Inquiries and Reports > Mixed License Plate Receiving.
2. Note that the received license plate appears on the list page.
3. Select the license plate and click the Complete License Plate button in the License Plate Action pane.

• An arrival journal is automatically posted.
• A "Return Orders" work order is automatically created to move the item from the default receiving location to the destination location, based on the location directives setup.
• A new RMA is created with a line item that has a "Registered" status.

The next steps are to post the packing slip and invoice. This is not in this article's scope.

BLIND RETURNS

In this scenario, the selling company doesn’t maintain return details, which means the customer doesn’t have any reference information like a return label, return details ID, original sales order, shipment ID, RMA, etc. This is considered a complete blind return. In other words, the customer doesn’t need to contact the seller before the actual return.

Receiving Unannounced Returned Items by Blind Return

Assumption: The customer doesn’t have any reference data (e.g., no return label, no order number).

1. Open the Warehouse Management mobile app.
2. Select Blind Return.
3. Scan the Customer ID.
4. Scan the Item ID.
5. The system generates a License Plate (LP).
6. Enter the Quantity.
7. Select the Disposition Code.

Please note that a "Work Completed" message will appear.

Important: Do not forget to click CANCEL to release the flow and complete the process.

All unannounced returns will go to the Mixed License Plate Receiving screen.

Mixed License Plate Receiving

1. Go to Warehouse Management > Inquiries and Reports > Mixed License Plate Receiving.
2. Note that the received license plate appears on the list page.
3. Select the license plate and click the Complete License Plate button in the License Plate Action pane.

• An arrival journal is automatically posted.
• A Return Order's work order is automatically created to move the item from the default receiving location to the destination location based on the location directives setup.
• A new RMA is created with a line item that has a "Registered" status.

The next steps are to post the packing slip and invoice.

REQUIRED CONFIGURATIONS

Warehouse Parameters: Go to Warehouse Management > Setup > Warehouse Management Parameters > Returns fast tab.

• Default Return Order Journal: Select a journal name.
• Enable Return Details Creation: Set to Yes (Enable this process if it’s used). If this parameter is set to Yes, then activate the Enable Sales Load Line Picking Route parameter on the Loads fast tab. This links sales line inventory transactions and load lines.
• Enable Return Order Creation from Mobile Device: Set to Yes (Always enable this. This is for both "return details" and "blind return").

Number Sequence Configurations:

• Load Line Inventory Pick: This number is used on the load line’s "Load Line Inventory Pick" tab.
• Return ID: Configure the sequence for the Return ID.

Return Item Policies: Go to Warehouse Management > Setup > Return Items > Return Item Policies.

• Determine which items can be returned.
• Set a maximum number of days allowed for returning the selected items, if applicable.

Return Item Receiving Policies: Go to Warehouse Management > Setup > Mobile Device > Return Item Receiving Policies.

• Define what functionality is in use. Options include: Return Details, Blind Returns.

Mobile Device Menu Items: Go to Warehouse Management > Setup > Mobile Device > Mobile Device Menu Items.

• Create a Blind Return menu item to receive return items.
• Mode: Work.
• Work Creation Process: Return Item Receiving.
• Generate License Plate: Yes (since the returned item is placed in the receiving location).
• Display Disposition Code: Yes (select one of the created policies, select Blind here).

Mobile Device Menu: Go to Warehouse Management > Setup > Mobile Device > Mobile Device Menu.

• Create a menu that contains the Blind Return menu item.

Mobile Device Disposition Code: Go to Warehouse Management > Setup > Mobile Device > Disposition Codes.

• Create a new disposition code for mobile device returns.
• Disposition Code: Return Credit
• Inventory Status: Available
• Work Template: Returns (select a return work template).
• Return Disposition Code: Credit (select a disposition code).

BLIND RETURN DEMO

A blind return occurs when a return is made without an existing RMA order or any pre-recorded return details, and there is no need to reference the original sales order or shipment during the receiving process. During the return item receiving process, workers must use the mobile app.

Go to main mobile device menu, select Return > Blind return

All you know about this return is Customer account. Enter or scan the customer account. Hit OK.

Enter the item id.

Scan the license plate if there is any, otherwise, leave it empty.

Enter the return quantity.

Select the disposition code.

Hit OK.

Note that system generates license plate if you leave it empty.

Hit OK.

Note that work is now completed.

DO NOT forget to hit CANCEL to complete the flow. If you don't, generated license plate cannot be processed.

System will take you to previous menu when you hit Cancel.

We already know that "All unannounced returns will go to the Mixed License Plate Receiving screen". Let's review the license plate that we just received. 

Go to Warehouse management >> Inquiries and reports >> Mixed license plate receiving.

Note that the received license plate appears on the list page. Select the license plate and click the Complete License Plate button in the License Plate Action pane.

When the completion ends, LP disappears from this screen.

When "Show completed license plate" is checked, you can now see that RMA number and Work creation numbers are now populated.

Completing License Plate results with below activities:

• An arrival journal is automatically posted.
• A Return Order's work order is automatically created to move the item from the default receiving location to the destination location based on the location directives setup.
• A new RMA is created with a line item that has a "Registered" status.

Posted arrival journal is as below:

Created return order's work order is as below:

Created RMA is as below:

In conclusion, the ability to seamlessly receive unannounced sales returns in Microsoft Dynamics 365 Supply Chain Management showcases the system's flexibility and efficiency, allowing businesses to effortlessly handle unexpected situations while maintaining operational fluidity and enhancing customer satisfaction. This capability underscores the beauty of a well-configured system that adapts to real-world challenges with ease.