Allocation is allowed to either an invoice number or a picking slip number to enable allocation of claim to delivered but not yet invoiced orders. Auto allocation allows allocation to invoiced (completed) orders only. It does not allocate to “delivered but not yet invoiced” orders. You can allocate an invoice immediately and keep searching invoices until all claim quantity is allocated.
When a claim and the subsequent returns authorisation (RA) has multiple ISBNs allocated to multiple invoices, the system allows credit to be split by allocated invoice for eligible customers. The system will produce one credit note for each individual invoice on the RA. Eligibility for this credit split is based on customers company defined in control file TMSAR/CL-SPLCR. The split credit notes are identified by text type ‘SPC’ = Credit split.
Returns threshold percentage is used to measure returns against the customer’s last twelve months gross sales. In this case the gross sales are total sales less all ‘no fault’ returns and less firm sales. Any claims that result in the threshold being exceeded will pend for management review. In the Database Customer module, a Returns Policy Group Definition is established. This facility allows for the definition of a returns threshold percentage for various customer levels, for instance, the returns percentage of a buying group may be set at a threshold which is higher than the global threshold.
A claim retention period, number of days to add to the transaction entry date, is specified on a control file. If this period has expired for a claim, it will pend.
An allowable returns percentage that applies to an ISBN for a customer can be defined globally. Allowable returns percentage file holds the percentage of allowable returns by customer level and item level. The allowable returns percentage retrieval program retrieves the returns percentage allowed for the customer and item level, using the search sequence defined in the TMSAR/SEQ-RPCA, and calculates the allowable returns quantity. The allowable returns quantity is calculated as the percentage of the original delivered quantity less any previous returns already allocated to the ISBN. If the user allocates more than the allowable returns quantity, but less than or equal to the outstanding delivery quantity, system warning will display which can be overridden as long as the allocated quantity is still less than the original invoiced quantity remaining. If the user allocates more than the outstanding delivery quantity a hard error is issued that cannot be overridden.
When automatically allocating returns to invoices using Claims Auto Allocation the allowable returns percentage defined for the customer/ISBN will be considered before allocation. The allowable returns % will be applied to calculate the allowable return quantity and the allocated return quantity will not be allowed to be greater than this.
The Original Document Inquiry shows the allowable returns quantity for each invoice displayed for the customer/ISBN. The allowable returns quantity is also shown minus any previous returns allocated to that document/ISBN (it is in column “O/S Qty”).
The system allows for the definition of the sequence with which claims are allocated to existing invoices. The following options are available.
- None – manual selection of invoices
- FIFO – for all invoices
- LIFO – for all invoices
- FIFO – only for invoices within the returns period
- LIFO – only for invoices within the returns period
When a claim is entered the system will try and allocate each line to a corresponding invoice (if allocation is active) using the predefined sequence, and retrieve the pricing details. The quantity returned is then recorded against the quantity purchased. Whether auto or manual allocation is processed depends on settings in a Control File. On Order/Claims Pending Review panels and the Order Entry panel, warning message is displayed when delete button is clicked.
TMSAR/CE-ALOCV determines whether the ‘allocate to invoice’ and ‘original document number’ fields are to be mandatory. A warning can display when an allocated document number has not been entered. This could be just a warning message or the operator could be forced to make an entry. On which panel this warning displays depends on the setting in the Control File. It can be in the Detail only or the Header only or in both. Function Ignore warning allows the user to ignore the messages and continue.
TMSDS/RTC-CNLK is used to link up a customer if a return can not be allocated to an invoice for the actual customer. This is so that returns entered for new accounts can be linked through to the old account that purchased the stock.
TMSAR/CL-ALLOC is used on those cases where the claim carries a customer number that differs from the billing number on the original invoice. It enables you to determine how a claim is to be allocated. For example, a book store registers a claim under its own account number, but the relating invoice is charged to the book store’s head office account (it’s billing number). On this Control File establish which Billing numbers and Item Levels can be matched with the transactions for invoice allocations in claims processing.
Claims Control has a feature that allows for tracking a ‘strike’ figure by customer. This ‘strike’ will be incremented by invalid returns (firm sale returns, stickered, etc). The credit note prints an appropriate message depending upon the strike level and the Customer Type. The condition of the goods being returned is also printed on the credit note.
The letter facility allows for the interactive creation, maintenance and printing of acknowledgment and rejection letters. Rejection of claims results in a letter being printed (if Control File set accordingly) to be sent to the customer advising the reason for rejection. Once a Return is approved, manually or by the system, an R/A will be printed and sent to the customer. TMSAR/CE-PRTD has a flag which can clear the Print Document status flag so that an R/A can print again.
When returned stock is received it will be entered into the system and allocated to the appropriate R/A, with the following conditions.
- If the authorisation has expired it will pend for approval.
- If the quantity received is less than the quantity approved, the authorisation will be automatically adjusted.
- If the quantity received is greater than the quantity approved, it will pend for approval.
- If the return is received without an authorisation, it will pend for approval.
A special facility is available for goods returns whereby the stock is kept in a holding area until the claim is verified and approved. A Returns Loading Report is produced in the relevant warehouse, requesting the goods to be put away into the normal bin location, thus updating the stock level in the inventory control.
Automatic Warehouse Returns can be done for the warehouse/picking method based on the setting in TMSDS/WH-RETN.
Stock can be returned to both Free and Bond warehouses and damaged goods written off.
TMSAR/CE-VALIS is used by the Claim Control and Stock Receiving Systems. It contains two Y/N flags which determine whether claims can be recorded for a suspended (status S) and/or closed (status C) item.
- The first flag determines whether or not claims can be entered for suspended items. If the flag is set to: Y = Claims can be entered for suspended items, N = Claims cannot be entered for suspended items. An error message is displayed requiring you to remove the item.
- The second flag determines whether or not claims can be entered for closed items. If the flag is set to: Y = Claims can be entered for closed items, N = Claims cannot be entered for closed items. An error message is displayed requiring you to remove the item.
The claims system interfaces to the accounts receivable system automatically. Customer balances are updated, showing claims and credit notes details. The claims system can interface with the Customer History files. TMSAR/CH-TYPD is used to determine what line types are updated into the History Files.
An optional facility is provided to calculate tax on the total credit value before its completion. The total credit tax value is adjusted with the difference between the sum of the tax calculated by order line and the tax calculated on the total credit value. This transaction is printed on the credit against a non-stock Item.
Promotional allowances by business unit can be calculated and included in the calculation of a credit value. This same facility is available for order entry. For each allowance code a non-stock Item is created. Allowance codes and amounts are specified on a line item by line item basis during claims entry. The allowance amount is used to calculate the total promotional allowance for a line item. The allowance calculation may apply before or after the discount.
TMSAR/SEQ-ALLC defines the search sequence for claim against invoice allocation. The search code is system defined. The invoice allocation sequence is fixed i.e. by customer, distribution centre, billing group accounts and by linked accounts, which is not flexible.
Strike Counter feature allows for tracking a ‘strike’ figure by customer. This ‘strike’ will be incremented by invalid returns (firm sale returns, stickered, etc). The credit note prints an appropriate message depending upon the strike level and the Customer Type. The condition of the books being returned is also printed on the credit note. A Customer Classification needs to be created to hold the ‘strike’ figure by customer. This figure can be maintained manually through the Customer Classifications Maintenance. Returns Registration and Claims Pending Review program updates the ‘strike’ figure based on the criteria of what constitutes a ‘strike’. To record a strike the Customer must be set up in the Customer Classification Maintenance program with a strike group classification code.
Claims for all digital products (identified by stock item flag of ‘D’ in the Title masterfile) will be treated like non-stock item. Credit notes will be generated for the approved claims without the need to receive the product since there will be no physical product to be received.
