User would like to know how an Item marked as Drop Ship can become part of Inventory once a customer returns that Item
- On the Sales Order page, click the Authorize Return button. In the Return Authorization page, users have the option to set it to either Pending Receipt or Pending Approval.
- The Drop Shipment Column will automatically be checked when users click the Authorize Return on the Sales Order page. If the user wants the Drop Ship Item to be part of their Inventory, the Drop Shipment Column checkbox must be unchecked for the line item.
- Next, users may click the Receive button on the Return Authorization page. On the Return Authorization page you will notice that the Restock Column checkbox is mark checked. Hit Save button once you have verified that all the information on the Item Receipt page is correct.
- Set a value on the Override Rate (rate per unit) so that the Item will be received at a cost. The rate can be referred from the Vendor Bill from the Drop Ship Purchase Order Transaction.
- Navigate to your Drop Ship Inventory Item Record > Inventory Tab >Location, it will now show that the Quantity on Hand is increased by the number of quantity you have set as to be Restocked on the Item Receipt page.
Note: When item has a Customer Return Variance Account set on the Item, this would be used instead of the COGS account. Thus the COGS Debited on the Vendor Bill is essentially not yet reversed. User may need to perform an additional Journal entry to reverse the COGS and Customer Return Variance Account.