Understand claims calculation

A claim refers to the process of returning faulty or incorrect products to the vendor, also known as Return Merchandise Authorization (RMA). These claims involve either returning the products to inventory for resale or disposal. Furthermore, claims encompass activities such as issuing credits or adjusting prices, which allows modifying the product prices after an order has already been shipped. These adjustments can be made due to product quality issues or other valid reasons. Moreover, claims can be applied partially and may exist in different states (registered, released, posted). These aspects hold significant relevance during the settlement process with growers, as they directly impact the revenue generated by the respective purchase orders. The Claims section can be expanded into two subsections. The subsections are:

• Credit: This section gives insight into price corrections made to sales transactions using an item charge set to Account Sale Type of Price Correction. For more information, see Set up item charges. The item charges mentioned earlier for sales shipments can be registered in either sales credit memo documents or sales return order documents.

  • Unposted: represents sales credit memo or sales return order lines that use an item charge with the Account Sale Type as a Price Correction and have not been posted.
  • Posted: represents sales credit memo or sales return order lines that use an item charge with the Account Sale Type as a Price Correction and have been posted.

• Return: This section gives insight into inventory return transaction lines of type as an Item that has lot numbers assigned to track the current settlement. The previously mentioned inventory return transactions can be registered in either sales credit memo documents or sales return order documents.

  • Not Received: represents sales credit memo or sales return order lines of type as an Item with a lot number assigned associated with this account sale. These items have not been posted for receipt.
    

  Sales credit memo lines created through the Get Return Receipt function are not considered as ‘Not received.’ Instead, they represent a posted receipt that only needs to be credited. These lines are only picked up once they are posted, and they are then displayed in the ‘credited’ subsection.

  • Received: represents the sales return order lines of type Item with a lot number assigned, associated with this account sale. These items are posted for receipt but not yet credited.
  • Credited: represents the posted sales credit memo lines of type Item with a lot number assigned, associated with this account sale. These items are posted/credited.

Each section (Credit -Unposted, Posted, and Return - Not Received, Received, and Credited) categorizes the revenue into Gross Revenue, Discount, and Net Revenue. The calculation of these sublevels adheres to the same business rules. For more information, see Understand sales revenue calculation.

Contrary to sales transactions, credit or return related transactions in these sections have a negative impact on what needs to be reported back to the vendor for this specific account sale.