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• It increases the Quantity On Hand by the number of units listed in the cancellation line item.
• It decreases the Quantity Shipped by the same amount.
• It increases the Quantity Available by the same amount.

Returning Damaged Goods

Sometimes cancellation orders return products that are damaged and cannot be returned to stock for re-sale. To track the units that are not returning to inventory the order line in the cancellation order needs to indicate that the returned products are not to be added back to the Quantity On Hand and Quantity Available.

When a cancellation order is processed, the service representative selects the Not Returned to Stock option on the Order Line record if the products returned are not to be added back to the inventory.

Order Line Record for Damaged Goods Image RemovedImage Added
When the cancellation order is shipped, the number of units returned is deducted from the Quantity Shipped field (just like a regular return of products). However, if the Not Return To Stock option is selected on the Products record, the Quantity On Hand and Quantity Available are not increased.

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When units are returned to the vendor, a user runs the Inventory Return wizard to automatically generate adjustment product inventory ledger entries to deduct those units from available inventory. See Returning Goods to Vendors for details.

This operation has the following impact on a product's quantity:

• It decreases the Quantity On Hand by the number of units returned.
• It decreases the Quantity Available by the same amount.

Reverse COGS Entry

When taking an order for a product that requires calculation of Cost of Goods Sold, the Aptify system generates a GL entry similar to the one below:

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Often cancellation orders return product in exchange for another product. How inventory is affected when products are exchanged is a combination of the effect of returned products on cancellation orders and purchased products on regular orders.

A product exchange begins with the creation of a cancellation order. The cancellation order has two order lines: one containing a negative quantity for the returned product and another containing a positive quantity for the exchange product. When the cancellation/exchange order is saved and shipped, inventory is tracked for each order line. Negative order lines (product returns) return the shipped or reserved units to Quantity On Hand and Quantity Available (when the cancellation order ships). Positive order lines (exchange products) move inventory to Quantity Reserved or Quantity Shipped depending on the order's status (Taken or Shipped).

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