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Delivery Address on a Returned Sales Order - Tax Issues

Posted on by 1,624

When creating a Return Order, the delivery address defaults to the company address and you are not able to change this, which is not a problem until you have provided a disposition code to receive the inventory in and then a corresponding Sales Order is created.  The returned Sales order now has this same company address as the delivery address which causes and issue with Tax calculations because tax calculations use the delivery address, so while processing the return, the tax is recalculated using the company that the material is returning to and not the original, so the credit amount is incorrect.

It seems like this should be a setting/parameter somewhere but I'm having no luck finding such a setting.  Anyone else run in to this issue? Do you have to manually update the address on the return order once the material has arrived?  That is what we are currently doing, but it is labor intensive and holds up the credit process.

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  • Community Member Profile Picture
    Community Member Microsoft Employee on at
    RE: Delivery Address on a Returned Sales Order - Tax Issues

    Avalara has a setting in the Configuration

    Configuration Settings>>General>>Return Order Address ...

    You can Set it to use the Bill to Address or the Ship To Address. This may work for many customers. 

    Unfortunately if you have a Client that has a Different bill to office then the ship to address it may still be an issue.

    s

  • FAC.Ansel Profile Picture
    FAC.Ansel 1,624 on at
    RE: Delivery Address on a Returned Sales Order - Tax Issues

    Francesco,

    You are correct, the documentation uses this address to tell the customer where to send the parts.  In my particular case, the client does not send any RMA documentation to the customer, so they are ok with putting the delivery address as the original customer address.

    Also, I misspoke, yes the Return order, when created, is created in the SalesTable and SalesLine table, so they are all one record, but to the user, the Returned order is not visible until the disposition has been specified.  To end users, this is easier to explain as a "separate" but related order than trying to explain that there is one record, but you just can't see it through the user interface till it is received.

    Another specific piece of information that might be missing is that my client is using AVATAX for tax calculation and based on how it interacts with AX, the solution I found seems to be the smoothest to execute.

    Good luck finding a solution to the issue.  IMHO, Return Orders seem like a good idea that didn't fully get executed and leaves room for improvement.

  • Francesco Profile Picture
    Francesco 514 on at
    RE: Delivery Address on a Returned Sales Order - Tax Issues

    But then you are using the customer's address as the return address, which is not correct. The return order should use the warehouse address or (if that's not available) the company's address. 

    The company address has no tax information, so the sales order (btw, your return order is a sales order. It doesn't get created after entering a disposition code) should pick up the VAT in the normal fashion and not derive it from the address.

    Having said that, I am facing the same problem but only on one of our sites. Haven't found the solution yet.

  • Verified answer
    FAC.Ansel Profile Picture
    FAC.Ansel 1,624 on at
    RE: Delivery Address on a Returned Sales Order - Tax Issues

    Latonia,

    Yes, I did come up with a solution to this.  When you create the Return Sales order you can change the delivery address to where it was really delivered originally.  To do this:

    1. Create new Return Order

    2. Enter customer

    3. Enter Return reason (if required)

    4. Click the Global address button next to the delivery address drop down

    5. Change record type to customers

    6. Search for and select Customer/delivery address

    You can also update the return order BEFORE it is registered by going to the Header and doing the same thing.

    If the receipt is already done, just update the delivery address on the return sales order and the tax should recalculate.

    Hope this helps!

    Ansel

  • Community Member Profile Picture
    Community Member Microsoft Employee on at
    RE: Delivery Address on a Returned Sales Order - Tax Issues

    Hi Ansel,

    Have you received any feedback?  I'm having the same issue.

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Delivery Address on a Returned Sales Order - Tax Issues

    Hello Ansel Slagle,

    What you could possibly check is what sales tax group has been setup in the company's delivery adress (General tab) and what purpose this address is linked to.

    In addition, please check the terms of delivery used for your return order and what sales tax address it points to.

    It is difficult giving you a better hint as there are several options how the sales tax can be setup.

    Yet, probably those settings already help in your case even they might require some testing effort.

    Hope this helps,

    Ludwig

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