Stock Restoration on Returns

Stock Restoration on Returns

When customers return items, the stock needs to be restored to your inventory to maintain accurate stock levels. EquiBillBook automatically handles stock restoration when you process sales returns. This guide explains how stock restoration works.

Automatic Stock Restoration

When you create a sales return in EquiBillBook:

• Stock is automatically added back to inventory (if stock tracking is enabled)
• The restoration happens immediately when the return is saved
• No manual stock adjustment is required
• Stock movement is recorded in inventory history

Prerequisites for Stock Restoration

For stock restoration to work:

• Stock Tracking Enabled: Stock tracking must be enabled for the items
• Item Settings: Items must be configured for stock tracking
• Inventory Module: Inventory module should be active in your account
• Permissions: You need appropriate permissions for inventory operations

How Stock Restoration Works

The restoration process:

1. When you create a sales return and select items to return
2. The system identifies the original sale and location
3. Stock quantities are added back to the same location/branch
4. Stock levels are updated immediately
5. Stock movement record is created showing the return

Location/Branch Restoration

Stock is restored to the correct location:

• Same Branch: Stock returns to the branch from which it was originally sold
• Multi-location: In multi-branch setups, stock goes back to the selling branch
• Location Accuracy: Ensures inventory accuracy across all locations
• Transfer Handling: If items were transferred, restoration follows the original flow

Batch and Lot Tracking

If your items use batch or lot tracking:

• Batch Restoration: Stock is restored to the same batch/lot from which it was sold
• Batch Identification: System maintains the link to the original batch
• Expiry Dates: Original expiry dates are preserved if expiry tracking is enabled
• Serial Numbers: Serial numbers are restored if serial number tracking is used

Partial Return Stock Restoration

For partial returns:

• Only the returned quantities are added back to stock
• Remaining sold quantities remain deducted from inventory
• Each partial return restores its respective quantities
• Multiple partial returns can restore stock incrementally

Stock Movement Records

Every stock restoration creates a movement record:

• Transaction Type: Recorded as "Sales Return" or "Return"
• Reference: Linked to the sales return and original invoice
• Quantity: Shows the quantity restored
• Date/Time: Timestamp of the restoration
• User: Person who processed the return
• Audit Trail: Complete history for inventory tracking

Stock Valuation

Stock valuation on returns:

• Cost Method: Uses your configured stock valuation method (FIFO, LIFO, Average, etc.)
• Return Cost: Typically uses the original cost from the sale
• Valuation Update: Stock value is updated based on the valuation method
• Accounting Impact: Affects cost of goods sold and inventory valuation

Viewing Restored Stock

To verify stock restoration:

• Current Stock: Check current stock levels for the items
• Stock Movement: View stock movement history to see the restoration entry
• Item Details: Check item details to see updated quantities
• Location Stock: Verify stock at the specific branch/location

Quality Control Considerations

When restoring stock from returns:

• Product Condition: Physically inspect returned items before restoring to saleable stock
• Damage Assessment: Damaged items may need separate handling (damaged stock category)
• Expiry Check: Verify expiry dates if applicable
• Testing: Test returned items if they are electronic or mechanical
• Segregation: Consider segregating returned items initially

Disabling Stock Restoration

In some cases, you might not want to restore stock:

• Damaged Goods: If items are damaged beyond repair
• Expired Items: If items have expired and cannot be resold
• Warranty Returns: Items returned under warranty to manufacturer
• Manual Control: Some systems allow manual control over stock restoration

Note: Check your system settings to see if you can control stock restoration behavior.

Stock Restoration Reports

Track stock restoration through reports:

• Stock Movement Report: Shows all stock movements including returns
• Sales Return Report: Includes stock restoration information
• Inventory Adjustment Report: Shows stock changes from returns
• Item-wise Return Report: Track returns and restoration by item

Best Practices

• Always verify that stock tracking is enabled for items before processing returns
• Review stock levels after processing returns to confirm restoration
• Physically inspect returned items before considering them as saleable stock
• Maintain separate categories for damaged or non-saleable returned items if needed
• Review stock movement reports regularly to track return patterns
• Ensure proper documentation of returns for inventory audits
• Train staff on return processing to maintain inventory accuracy

Troubleshooting

Stock is not being restored?

• Verify that stock tracking is enabled for the items
• Check item settings to ensure stock tracking is active
• Ensure the Inventory module is activated in your account
• Verify that the return was saved successfully
• Check for any error messages during return processing

Stock restored to wrong location?

• Verify the original sale location/branch
• Check multi-branch settings
• Review branch configuration
• Contact support if location mapping seems incorrect

Stock quantities don't match?

• Verify return quantities match what was entered
• Check for partial returns that might have been processed
• Review stock movement history for the items
• Compare current stock with expected levels

Batch/lot information is incorrect?

• Verify batch/lot tracking settings for the items
• Check the original sale batch information
• Review batch configuration
• Ensure batch data was properly recorded in the original sale

Proper stock restoration is crucial for maintaining accurate inventory levels. It ensures that your stock records reflect the actual goods available for sale and helps in proper inventory management and reporting.