In Indonesia, return processing commonly involves a method called Tukar Guling, where replacement goods are sent without revising the original Delivery Note or Invoice. Production Control System in Indonesia It’s not limited to Indonesia, but it’s often said that the ultimate goals of the manufacturing industry are twofold: "cost reduction through productivity improvement" and "delivering products on time without delays." From a management perspective, business plans are crafted to maximize growth based on market supply and demand adjustments. However, even if sales increase due to low pricing, it only reduces gross profit, leading to losses from selling and administrative expenses or non-operating costs. On the other hand, raising unit prices isn’t straightforward due to market price considerations. Therefore, process management based on production plans aimed at reducing costs through ... 続きを見る
Response Patterns for Shipping Returns
The process from shipping to sales follows a sequence, but in Indonesia’s automotive parts industry, simultaneous shipping and sales recording is standard, so completing the shipping process automatically finalizes the sales process.
- Shipping Instruction
- Invoice Registration
- Shipping Completion
- Sales
In Indonesia, returns often involve sending replacements (*Tukar Guling*), but the following return processing patterns are possible:
- Pattern 1
Physically swapping the returned goods with replacements (*Tukar Guling*). - Pattern 2
Cancel everything and re-enter from scratch based on the actual delivered quantity after the return. - Pattern 3
After canceling sales and invoice, issue a revised Invoice with a negative adjustment for the return against the original shipment quantity via return shipping processing. - Pattern 4
Post-month-end closing, record a negative Invoice, negative shipment (return receipt), and negative sales via Return Sales Order Entry and Return Shipping Entry.
The simplest method is sending replacements without any system updates, applicable both within the month or after month-end closing.
- Ship 10 units and record 100 in sales.
- Discover 2 units are defective (NG); returns are received but not processed in the system.
- Release 2 replacement units but do not process in the system.
In this case, the returned goods and replacements are physically swapped, posing no issue without lot management. However, if lot management is required for tracing, the system lots and physical goods will mismatch.
To prevent this, handling return receipt and replacement issuance via inventory adjustment follows this flow:
- Ship 10 units and record 100 in sales.
- Discover 2 units are NG; process receipt of returns via inventory adjustment.
- Process 2 units as replacement issuance via inventory adjustment.
The issue here is that the 2 replacement units issued are not linked to shipping performance in the system. To address this, an issuance slip must be issued, and the shipping number should be noted in the remarks of the replacement issuance process to indicate which shipping performance it corresponds to.
If even return history isn’t needed, you could cancel everything from sales to shipping completion and instructions, then re-enter as an 8-unit shipment.
- Ship 10 units and record 100 in sales.
- Discover 2 units are NG; cancel everything due to return receipt.
- Process 8 units for shipping instruction, shipping completion, invoice registration, and sales.
- Move the 2 returned units to the inspection warehouse.
However, the proper system approach would be to process a shipping return for the affected shipment, register a new order for replacements if needed, and note in the remarks which order the replacement shipment corresponds to for history tracking.
- Ship 10 units and record 100 in sales.
- Discover 2 units are NG.
- Cancel sales and invoice, process shipping return, and receive 2 units into the return warehouse.
- Issue a revised Invoice for “Shipment 100 – Return 20” and re-register sales.
- Register and ship a new order for 2 replacement units, specifying in the remarks which shipment they replace.
The accounting entries generated in this case are linked to the invoice number, indirectly reducing sales via an adjustment:
- Current month (accounts receivable generated)
(Debit) AR 100 (Credit) Sales 100 - Current month (sales adjustment)
(Debit) Sales adjustment 10 (Credit) AR 10
For returns after month-end closing, process a negative Invoice, negative shipment, and negative sales via return order processing:
- Ship 10 units and record 100 in sales in the previous month.
- Discover 2 units are NG in the current month; process a negative 2-unit order via Return Sales Order Entry.
- Issue a negative Invoice for -2 units.
- Record -2 units via Return Shipping Entry, receiving 2 units into the return warehouse.
- Register -20 in sales.
By issuing a new invoice number for return order processing and recording negative sales performance via shipping return processing, the cost of sales for cost accounting is correctly adjusted:
- Previous month (accounts receivable generated)
(Debit) AR 100 (Credit) Sales 100 - Current month (sales adjustment)
(Debit) AR -10 (Credit) Sales adjustment -10