In Indonesia, the method known as Tukar Guling is commonly used for returns processing. This method involves sending a replacement product without modifying the original shipping documents or invoice.
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Production Management Systems in Indonesia
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What this article covers
- In Indonesia, the method known as Tukar Guling is a common way to send replacement products.
- In the automotive parts industry, sales are recorded simultaneously with shipment completion.
- Returns processing includes both physical replacement of products and system corrections.
- Pattern 1 involves only physical exchange without system processing.
- Pattern 4 issues a negative invoice for returns after month-end.
Response Patterns for Shipment Returns
There is a sequence to the processing that leads from shipment to sales, but in the Indonesian automotive parts industry, sales are typically recorded simultaneously with shipment. The completion of shipment processing automatically completes the sales processing.
- Shipping Instruction
- Invoice Registration
- Shipment Completion
- Sales
In Indonesia, the method of sending replacement products, known as Tukar guling, is common during returns, and the return processing patterns are as follows:
- Pattern 1: Simply replace the returned item with a replacement product physically (Tukar guling).
- Pattern 2: Cancel everything and re-enter from the beginning with the actual delivery quantity after the return.
- Pattern 3: Cancel sales and invoice, then issue a corrected invoice with a negative adjustment for the returned quantity against the original shipment.
- Pattern 4: After month-end, issue a negative invoice for returns, record negative shipment (return receipt), and negative sales.
The simplest processing method is to send a replacement product without doing anything in the system, which can be handled both within the month and after month-end processing.
- Ship 10 units and record sales of 100.
- Discover 2 units are NG, receive returns but do not process in the system.
- Dispatch 2 replacement units but do not process in the system.
In this case, simply physically replace the returned items with replacement products. If lot management is not required, there is no problem, but if traceability is needed, the system's lot and actual items will not match. To prevent this, if inventory adjustment is used for return receipt and replacement dispatch, the flow is as follows:
- Ship 10 units and record sales of 100.
- When 2 units are found NG and returned, perform receipt processing through inventory adjustment.
- Perform replacement dispatch processing through inventory adjustment.
The issue with this processing is that the 2 replacement dispatches are not linked to the shipping record in the system, so it is necessary to issue a dispatch slip and record the shipping number in the remarks of the replacement dispatch processing to identify which shipping record it corresponds to.
If even the return history is not needed, it is possible to cancel everything from sales to shipment completion and shipping instruction, and re-enter as an 8-unit shipment from the beginning.
- Ship 10 units and record sales of 100.
- Discover 2 units are NG, cancel everything upon return receipt.
- 8-unit shipping instruction, shipment completion, invoice registration, and sales processing.
- Move the 2 returned units to the inspection warehouse.
The proper processing as a system is to perform shipment return processing for the relevant shipment, register a new order if replacement shipment is needed, and leave a history in the remarks of which order the replacement shipment corresponds to.
- Ship 10 units and record sales of 100.
- Discover 2 units are NG.
- Cancel sales and invoice, perform shipment return processing, and receive 2 units into the return warehouse.
- Issue a corrected invoice for "Shipment 100 - Return 20" and register sales again.
- Register a new order for 2 replacement units, perform shipment processing, and clearly indicate in the remarks which shipment the replacement shipment corresponds to.
The accounting entries generated in this case are indirectly adjusted as sales adjustments linked to the invoice number.
- Current Month (Accounts Receivable Occurrence)
(Debit) AR 100 (Credit) Sales 100 - Current Month (Sales Adjustment)
(Debit) Sales adjustment 10 (Credit) AR 10
If this is a return after month-end, a negative invoice, negative shipment, and negative sales are recorded through return sales order processing.
- Ship 10 units and record sales of 100 in the previous month.
- Discover 2 units are NG in the current month, record a negative 2-unit order through return sales order processing.
- Issue a negative invoice for the negative 2 units.
- Record a negative 2-unit shipment through return shipping entry, receiving 2 units into the return warehouse.
- Register negative sales of 20.
By issuing a new invoice number for return sales order processing and recording negative sales performance through shipment return processing, the cost of sales in cost accounting is correctly adjusted.
- Previous Month (Accounts Receivable Occurrence)
(Debit) AR 100 (Credit) Sales 100 - Current Month (Sales Adjustment)
(Debit) AR -10 (Credit) Sales adjustment -10
Frequently Asked Questions | Returns Processing in Indonesia
Following the content of this article, frequently asked questions are briefly organized.
What is Tukar Guling?
Tukar Guling is a common returns processing method in Indonesia, where replacement products are sent without modifying the original shipping documents or invoice. It is characterized by physically replacing returned items with replacement products without performing system processing.
What are the patterns of return processing?
There are mainly four patterns of return processing. Pattern 1 involves physical exchange through Tukar Guling, Pattern 2 involves canceling everything and re-entering, Pattern 3 involves canceling sales and invoice and issuing a corrected invoice, and Pattern 4 involves issuing a negative invoice for returns after month-end processing.
How is inventory adjustment performed in Pattern 1.2?
In Pattern 1.2, when returns are received, receipt processing is performed through inventory adjustment, and replacement products are dispatched through inventory adjustment as well. During this process, it is necessary to issue a dispatch slip and record in the remarks of the replacement dispatch processing which shipping record it corresponds to.