Question about material returns

[LOWAIRD1964]

Hey guys I was doing my invoices this morning and I noticed a 1% charge on a material return credit. I called invoicing on TRACS and they told me to contact my dm. I can probally get the answer from you guys alot faster then waiting for him. Or he wont know and he will send me in circles looking for an answer I could have found out on here anyway. So I am just curious. The part was ordered as a cso, which we recieve no discount on. Why would they then charge me back like I got a discount in the first place.

Ex. unit price $22.30 1% discount = -$.022 net amount I get back is $22.08

[TimK]

Was this returned as a regular monthly return? If so you get whacked for 1%.

[LOWAIRD1964]

Yes it was. Ok thanks. GM sucks!!

[LOWAIRD1964]

So isnt a "monthly" return our money we build up from ordering from these jackasses? And then they are going to bang us for shipping and a 1% fee on top of that.

[LOWAIRD1964]

So my next question is where does your accounting dept put that amount (1%) that we were banged for on our monthly return.

242 or 687?

[TimK]

If your discount goes into 687 then it should come back out of 687.

[LOWAIRD1964]

Tim, I hope im not hurting your brain today asking these questions. The part wasnt originally given a discount, because it was a cso. Normally yes if its a rim part my discount goes into 687 so that I could see it going back to 687 but if we werent originally given a discount should there be that restocking fee (esentially) going back into against out 687?

[TimK]

GM doesn't care how you ordered it. They charge the current discount you would receive if your ordered it DRO.
And it should be charged against 687.
Thankfully there's not much return reserve anymore so the 687 charge can't really amount to much.

[Zep33]

When you do these types of returns, you have to use the original invoice # it was purchased on. That way, they will see you did not get a discount on it and will not deduct a discount. Otherwise, they default it to taking the discount you "could" have received.