REQUESTS FOR CREDIT, RETURNS AND REPAIRS

INTRODUCTION

1. This chapter outlines the method of accounting for and controlling:

   1. Requests for Credit;

   2. Credit Notes;

   3. Merchandise Returns; and

   4. Repairs.

REQUEST FOR CREDIT

2. Request for Credit Forms (CF 1333) are serial numbered documents that are controlled by the NPFAS. The NPFAS will issue limited quantities of the forms to the outlet managers and shall enter the serial numbers issued in an accountable document control register.

3. A Request for Credit will be raised when:

   1. a discrepancy in price or quantity is discovered when matching the invoice with the PO and the error is on the invoice, not the PO. (See Chapter 21 and Chapter 51); or

   2. damage is noted by the receiver and recovery is to be made against the supplier or carrier. (See Chapter 21 and Chapter 51).

      NOTE
      For CANEX outlets, a Loss and Damage Claim Form must be completed as directed in the CANEX Policy and Procedures Manual Operations 404.

   3. Store merchandise is returned to the supplier for credit.

4. When raising a Request for Credit Form:

   1. write on the form the date the form will be used as a credit note if credit is not received (normally 30 days from date of raising form);

      NOTES
      

      1. When the merchandise is from a supplier that is not on the Central Billing program, the date on the form should be 30 days from the date on which the form is raised.

      2. When the merchandise is from a supplier that is on the Central Billing program, the date on the form should be 45 days from the date on which the form is raised. After 45 days, the outlet manager shall send a copy of the form to CANEX HQ who will verify that a credit has not been issued, and stamp the form with "CANEX CREDIT ISSUED" stamp. This stamped form will be returned to the originating outlet, which will process it as if it were a credit note.

   2. mail the white copy to the supplier; and

   3. file the yellow copy and the pink copy with the PO and the invoice in a dated Request for Credit file.

CREDIT NOTES

5. On receipt of a credit note from a supplier, the outlet shall match the credit note with the yellow copy of the Request for Credit. The credit note shall then be processed along with the supplier's invoice and PO (which had been held pending receipt of credit note) as per Chapter 51. The pink copy shall be filed by supplier.

6. If after the date noted on the Request for Credit, a credit note has not been received, the outlet shall hasten the company and obtain a supplier return authorization number. Upon receipt, process the PO and invoice for suppliers that are not on the central billing program. The yellow copy of the Requests for Credit, when used as a deduction from suppliers account, must be processed individually and not netted against the applicable suppliers invoice.

7. If a credit note, which agrees with the applicable Request for Credit, arrives after the action in para 6 has been taken, the outlet shall file the credit note with the pink copy of the Request for Credit.

8. If there is a difference between the deduction made from the supplier by way of the Request for Credit and the actual credit note received subsequently, then a new Request for Credit must be prepared detailing the difference. The new Request for Credit for the net difference, with the suppliers credit note attached, shall then be processed in the normal manner.

9. For those suppliers participating in the Central Billing program, the Request for Credit is processed as a credit note only after it has been verified and stamped by CANEX HQ. See para 4, Note 2 above, and Chapter 51.

10. On receipt of the Request for Credit, the NPFAS shall:

    1. check off the serial number of the Request for Credit to the Accountable Document Control Register as per Chapter 6; and

    2. if attached to a supplier's credit note, process the credit note to the supplier's accounts payable record; or

    3. if a supplier's credit note is not attached, the Request for Credit must be supported by a supplier return authorization number and is to be used as a deduction from the suppliers account and applied as a credit note to the supplier's accounts payable record.

       NOTES
       

       1. If the NPFAS receives a Request for Credit for a supplier on the Central Billing program that has not been verified and stamped by CANEX HQ, the Request for Credit shall be returned to the outlet manager to process in accordance with Chapter 51.

       2. Requests for Credit received without the support of a credit note or a supplier return authorization number, at the time of stocktaking only, are to be actioned to the merchandise received not invoiced accounts.

MERCHANDISE RETURNS

11. Merchandise returns to a supplier shall be actioned on a Request for Credit. The white copy shall be sent with the merchandise to the supplier and the yellow and pink copies filed in the Request for Credit file. A copy of the shipper's receipt shall be attached to the yellow copy.

12. On receipt of a supplier's credit note, the outlet manager shall:

    1. attach the yellow copy of the Request for Credit to the credit note;

    2. forward the documents to the NPFAS on the daily DND 728.

13. If credit has not been received after 30 days, or 45 days in the case of a Central Billing supplier, take action as per paragraph 6 and paragraph 9 above.

14. Merchandise that has been returned to CANEX by a customer shall be handled in accordance with the CANEX Policy and Procedures Manual, Operations 401.

REPAIRS

15. Repairs shall be handled by the use of a two-part repair tag, available from CANEX HQ, and a locally produced Repair Register.

16. Customer Repairs. Where the outlet acts on the customer's behalf with regard to manufacturer's warranties, the outlet manager shall:

    1. complete both portions of the repair tag;

    2. give the bottom tear-off portion to the customer;

    3. record the required details on the Repair Register;

    4. attach the top tear-off portion of the tag to the items and ship them to the repair centre; and

    5. upon item return, enter the date in the Repair Register, notify the customer and obtain his signature in the register when the repaired item is picked up.

17. Store Merchandise Repairs. When store merchandise requires repairs, the outlet manager shall:

    1. complete both portions of the repair tag;

    2. put the bottom tear-off portion in a merchandise repair file;

    3. record the required details on the Repair Register;

    4. attach the top tear-off portion of the tag to the items and ship them to the repair centre; and

    5. upon item return, enter the date in the Repair Register, and return the merchandise to the selling floor or stockroom, as applicable.

18. The outlet manager is responsible for ensuring that the store merchandise returned for repair are accounted for at supervised stocktakings in accordance with Chapter 26.