How To: Accepting a Trade In (TW, DD)

Overview

A Trade In occurs when your company purchases a piece of merchandise from a customer. Most of the time this is a used item, which you may or may not decide to resell.

When you accept a Trade In item, a new inventory item is created with a Description, Product Type, Department, Serial Number Type, Each Price and Resale Value that is specified on the Trade In screen during POS Entry. Additionally, based on your preferences, the Vendor Price and Unit Cost are automatically calculated as a percentage of the Resale Value.

To designate the item as a Trade In item, a “T” is added to the ‘Floor Plan’ field (Field 7) in Inventory Master File Inq/Maint (03-01).

Setup Instructions

Before processing a Trade In, you must complete the following:

  • Set the “Allow Trade In” preference in Trans Entry Pre-Prompt (02-18-01) to “Y”.
  • Specify a percentage in the ‘Tradein Vendr Cost%’ field of Trans Entry Pre-Prompt. This percentage is multiplied by the Trade In Resale Value to calculate the Vendor Cost (Field 13) for the item. Enter “0” (zero) and the system will not calculate a Vendor Cost for the item.
  • Specify a percentage in the ‘Tradein Unit Cost%’ field of Trans Entry Pre-Prompt. This percentage is multiplied by the Trade In Resale Value to calculate the Unit Cost (Field 13) for the item. Enter “0” (zero) and the system will not calculate a Unit Cost for the item.

Video

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Step-by-Step

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  1. Select ‘TW-Take With’ or ‘DD-Delayed Delivery’ from the ‘Type of Sale’ drop-down list.

  1. In the ‘SalesPerson#1’ field, enter the employee number of the person processing the Trade In.
    • If two salespeople are involved in the transaction, enter the second salesperson’s employee number in the Salesperson #2 field. Next, enter the corresponding commission percentage for Salesperson 2 in the % field.

  1. If you are processing a DD transaction, enter a Delivery Date for the return.

  1. In the BillTo# field, enter a valid customer number. The corresponding customer information appears.
    • If the customer number is not on file, the Customer Maintenance box appears, allowing you to set up the new customer.
    • To search the system for an existing customer number, click the search button.

  1. Click the Detail tab.

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  1. In the ‘Item Number’ field, enter a unique item number for the Trade In.
    • It is a good idea to create a consistent naming convention for all of your Trade Ins.

  1. Click the TradeIn button.

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  1. The TradeIn Item# window opens. Enter a description for the item in the ‘Description’ field.

  1. Select a Brand for the item from the ‘Brand’ drop-down list.

  1. In the ‘Inv Product Type’ field, select the product type that will be used for the item when it is resold.

  1. In the ‘T/E Product Type’ field, select the product type that will be used to keep track of the trade in amount on the transaction line. Often companies use a non-sale, non-inventory product type for this purpose.

  1. In the ‘Serial# Type’ field:
    1. Select ‘N-Non Serial’ if the item does not use Serial Number Tracking.
    2. Select ‘A-Track at Sale’ if the item is an A-Flag Serial Number item.
    3. Select ‘B-Track from Receipt’ if the item is a B-Flag Serial Number item.

  1. In the ‘Each Price’ field, enter the amount that you are paying the customer for the Trade In merchandise.

  1. In the ‘Resale Value’ field, enter the amount that your company will sell this item for in the future.
    • Based on the entries in the ‘Inv. Price Code’ and ‘Min. Sell. Price’ fields in Branch Maintenance (30-02-02), the entered Resale Value field will appear in two of the price fields in Inventory Master File Inq/Maint (03-01) for the newly created Trade In item.
    • Field 13 (Vendor Cost) and Field 14 (Unit Cost) of Inventory Master File Inq/Maint are calculated as a percentage of the entered Resale Value. The percentages are set up in the ‘Tradein Vendr Cost%’ and ‘Tradein Unit Cost%’ fields of Trans Entry Pre-Prompt (02-18-01).
    • If you do not plan to resell this item, enter “0” (zero) in this field.

  1. Click OK.

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  1. On the Detail tab, enter any other required information for the item (Serial Number, etc.)

  1. Click Accept.

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  1. If Reason Codes are set up and activated on your system for returns, the above screen appears.

    If Reason Codes are not set up and activated on your system, skip to step 19.

  1. Select a reason for the Trade In.
    • The reason codes that appear on this screen are set up in the Order Maintenance Reasons selection (02-08-90-04).

  1. The fields that now appear on the screen vary depending on how the reason codes are set up. Enter the required information (Employee Number, Markdown Code, etc.) and click Done.

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  1. The Trade In item appears at the bottom of the screen.

  1. When you are finished, click Done.

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  1. The Tender Entry screen appears. Select a payment type from the ‘Payment Type’ drop-down list.

  1. The amount to be paid to the customer appears in the Amount field as a negative amount. Accept or modify the amount for the selected payment type.

  1. Enter the required information for the payment type. In the above example, the refund is being issued as cash so no information is required. If the refund was being made to the customer’s credit card, you would need to enter the card type, last 4 digits of the credit card and the authorization number.

  1. Click Accept and the payment appears on the right side of the window.

  1. When you finish entering all payment information, click Done.

  1. Depending on your how your Invoice Preferences (02-18-01, Field 8) are set up, one of the following now occurs:
    • The invoice is automatically printed
    • Invoice print is automatically skipped
    • You can choose to print or not print the invoice

  1. If you are processing a DD transaction and Centralized Delivery is licensed on your system, the Scheduler appears. Please follow your company’s delivery procedures to complete this screen.

  1. Take a look at the new Trade In item in Inventory Master File Inq/Maint. Notice that ‘T’ appears in the ‘Floor Plan’ field, signifying the item as a Trade In item. Additionally, the ticket number, detail line number and branch for the Trade In transaction appear in Field 27.
    NOTE: To view all Trade In items in your system, you can run the RDB Report ‘$ENDT’.
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