Dynamics AX Sales Order Refunds - Locus IT Services

Dynamics AX Sales Order Refunds

Refunds for Credit Card in Dynamics AX

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Dynamics AX Sales Order Refunds

This topic provides information about the process for MS Dynamics AX sales order refunds. It includes the information about customer returns and their effect on costing and on-hand inventory quantities.

There are 3 main fundamental areas of Microsoft Dynamics AX that returns are processed through in respect to credit card functionality: Accounts Receivable, Call Center, and MPOS/EPOS.

Dynamics Accounts Receivable (AR) in Sales Order Refunds:

The design expectation is that you will be creating a Credit Memo or Note from the original Sales Order to perform the return or refund. The credit card functionality in Microsoft Dynamics AR is strict that it is expecting a “return of the item” and not just crediting the credit card. This functionalities are not included in the Payment journal form nor is it supported to use RMA’s (Return Merchandise Authorization). If you are not returning an item but want to refund a certain dollar amount, a workaround or customization is needed as this is not directly supported through Microsoft Dynamics AR.

Following below are some basic scenarios and the suggested solutions. There may be other scenarios but this small list will provide you with a basic understanding to help determine the solution for anything not listed below.

Refunding the entire transactions (Net amount, Charges, and Taxes).

  • On the original sales order, select Create Credit note on the Sell menu tab.
  • Click the sales order and the item lines to be returned.
  • All entities like items, charges and taxes will be included in the refund.

Invoice the Credit note sales orders to refund the credit card.

Refunding only few of the items from the transactions (Net amount, Charges, and/or Taxes).

  • On the original sales order, select Create Credit note on the Sell menu tab.
  • Click the sales order and the specific item lines to be returned.
  • The selected items and their taxes along with all charges will be included in the refund.
  • Make any updates as much as needed to create a partial refund, such as removing or changing the charges, or changing line items quantities.
  • Invoice the Credit note sales orders to refund the credit card.

Refunding only the partial of net amount.

  • In this scenario, if you are looking to refund the customer an amount of the sale, not an actual item or any of the charges or taxes.
  • On the original sales order, select Create Credit note on the Sell menu tab.
  • Click the sales order and one of the item lines in order to create the return order.
  • Delete the line item as you are not returning that item.
  • Add an non-inventory item that will need to be used to perform the refund.
  • Make as many updates as needed such as removing the charges.
  • Invoice the Credit note sales orders to refund the credit card.

Refunding only certain items.

  • On the original sales orders, select Create Credit note on the Sell menu tab.
  • Click the sales order and the specific item lines to be returned.
  • The selected items and their taxes along with all charges will be included in the refund.
  • Make any updates as much as needed to create a partial refund, such as removing or changing the charges or changing line items quantities.
  • Invoice the Credit note sales orders to refund the credit card.

Refunding only charges/fees.

  • You cannot refund charges without returning an product as the Invoice option will not be enabled.
  • On the original sales order refund, select Create Credit note on the Sell menu tab.
  • Click the sales order refunds and one of the item lines in order to create the return order.
  • Delete the line item as you are not returning that item.
  • Add an non-inventory item that will need to be used to perform the refund.
    • Either use the non-inventory item with a dollar amount for the refunds
    • Or have a zero price for the non-inventory item and the Charged amount will be refunded
  • Invoice the Credit note sales orders to refund the credit card.

Refunding only Taxes.

  • Taxes are neither line items nor they are normally refunded without the item. The design of Dynamics AX sales orders does not support the direct refund of the tax to the credit card. Thus performing any reversal not involving the return of the item does not affects any tax posting accounts.
  • On the original sales order refunds, select Create Credit note on the Sell menu tab.
  • Select the sales order refunds and one of the item lines in order to create the return orders.
  • Delete the line item as you are not returning that item.
  • Add an non-inventory item that will need to be used to perform the refund and enter the amount of the tax refund.
  • Invoice the Credit note sales orders to refund the credit card.

Call Center in Axapta Sales Order Refunds:

The credit card functionality in Call center can be used in similar to that of AR. The only difference is the addition of the Complete and Payment buttons to submit payment. When the “Enable order completion” option is marked in the Call center channel, these option will become available on the Microsoft Dynamics Sales Order.

Locus IT understands the unique requirements of businesses and provides full AX sales implementation services, Dynamics AX sales upgrade, AX sales support and AX sales training. If you’re a mid-sized or enterprise business and are considering an ERP project, please contact us. We look forward to hearing from you!

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