Hi,

Am Montag, den 27.12.2010, 19:29 -0800 schrieb Ian Wilson:
> I guess I wasn't exactly sure how returns of actual products(ie. not
> containers) should be handled but it would be nice if they could be
> handled within the realm of a sale.  
> I agree that "damaged" products that are type stockable should not be
> returned to storage.  The return of damaged products is a good
> example.  Does that affect stock and accounting or just stock?  I do
> not understand what must be done in the case of accounting when a
> damaged good is returned.  
AFAIK, this depends hardly on the kind of product you use and at least
in Germany on the warranty laws of the government. E.g. having sold a
product with two years warranty.  The customer brings the product back
to you within this time. Then you need to check if the defect does not
violate the conditions in your given warranties. If the defect violates
the warranty, it is a simple repair service paid completely by your
customer. If not, yourself, your supplier or the producer needed to pay
the repair. In both cases you have expenses, so accounting is included
anyway.

> Let's assume for now that damaged products will be discarded instead
> of re-used or sold at a discount.
Discard: I would move it from incomming/storage location (when using a
warehouse) to a Lost and Found location. If you and your customer does
not pay for this movement accounting is not included, afais. But
sometimes there are costs for proper disposal.
Reuse/Second-Hand: I would put them into the storage and give them a
"used" label.

> I guess that in the case of damaged stockable products that nothing
> will be done at all regarding stock when they are returned.
You receive something from someone and you need to disposal it. If there
is no special process/cost for the disposal in your company, you just
put the broken parts in the dust-bin. Without any stock and accounting
moves.

> The return of composite containers on the other hand seems like a less
> likely example.  Why wouldn't the crate and the bottles both be all
> products themselves?  
This I have seen at a shop software for gas stations. They have the two
special product types: 
* full products
* empties (deposit)

Each 'full product' is combined with one 'empty' (or more, when you have
different packaging units). When you sell a 'full product' your customer
pays its price and additionally the price of the empty. When your
customer brings back the 'empty', you buy it from him for the price of
the 'empty'. You can sell your collected 'empties' to you supplier for
the same price.

> Otherwise what happens when a crate is returned with all bottles but
> 1?(Assume that 1 bottle was broken and was discarded prior to the
> customer returning the containers)
When a shop sells a crate of lemonade, they sell in detail e.g.
20 bottles of lemonade á 1.00 = 20.00 (full product)
20 bottle deposit á 0.15 = 3.00 (empties)
1 crate deposit á 4.5 = 4.50 (empty)
-------------------------------------
Total: 27.50 to receive from customer

When the customer brings back bottles and crate the shop 'buys' them
from the customer:
19 bottle deposit á 0.15 = 2.85 (empties)
1 crate deposit á 4.5 = 4.50 (empty)
-------------------------------------
Total 7.35 to pay to the customer

This works good when the deposit is constant and when having an obvious
criteria to decide if a return is acceptable or broken. But I am not
sure if you can use this model for your requirements.

> Are there more business cases/examples/edge-cases than the two above?
I am unsure if the former named gift-certificates are a valid case for
this. But maybe models of rental and leasing services have some
similarities.

Regards
-- 
Udo Spallek

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