At any point in time, products may get damaged or may reach their expiry date. You may find products to be damaged or expired when:
- You receive these products from the vendor
- You notice such damages/expiries in current stock
- Guests return products in this condition
Zenoti allows you to track the quantity and value of such damaged or expired products. As a business organization, you will need to track such products so that you either discard the products or return them to the vendor, if possible.
Discard Damaged/Expired Stock
If you want to discard or write off the products it means you do not want to track them further.
To discard damaged/expired stock:
- Update the quantity using Audit and Reconciliation.
- Enter Notes that capture details about why you are discarding the product. Example: Discarded 3 units (200ml) of Herbal Silky Shampoo as these bottles are damaged. This way, when an audit is performed, the auditor knows the reason behind the reconciliation from the Audit History Report.
Note: When you click the Audit Date column in this report, Zenoti displays the details of the audit including the Notes.
Track Damaged/Expired Stock
To track damaged/expired products:
- Create a pretend center.
Example: Track Returns center
You will use this center to stock damaged/expired products virtually.
Important: If you are a large business, with over 10 centers, you can follow this approach. Do reach out to the Zenoti Support team to create such a center.
- Enable this center for all your products so that you can track all products and move any damaged/expired stock to this center.
- Set up an Inventory Manager role for an employee at the Track Returns center so that the Inventory Manager can view the stock and review reports and take any relevant action.
- Configure Inventory tax for the Track Returns center. You can now transfer damaged/expired products from any center to the Track Returns center by raising a Transfer Order.
- Raise and Receive Transfer Orders.
- Capture Notes in Transfer Orders to help distinguish between damaged and expired products. Zenoti deducts the quantity (unit) from the current stock of the current center and adds the units to the current stock of the Track Returns center.
Note: The Track Returns center is now the central location to hold such damaged/expired products.
- To view the quantity and value of damaged/expired products that are transferred from different centers to the Track Returns center, go to the center level list of transfer orders (Inventory > Procurement > Orders).
- From the filters, select List of Orders and Transfer To Center.
This report shows the Quantity and Value of stock transferred and Notes if any.
- View the Current Stock report at the Track Returns center to view the total quantity and value of the damaged/expired products.
Note: After you transfer the damaged/expired goods to the Track Returns center, you can either discard the products (see the section Discard Damaged/Expired Stock) or return the products to the vendor, if possible.
Return Damaged/Expired Stock
To return damaged/expired stock to the vendor:
Raise a purchase order against the vendor.
Important: Since you are raising the purchase order to return the products, you must enter the number of products as a negative value.
What to do if Products Received from the Vendor are Damaged/Expired?
If the products are already damaged/expired when you receive them from the vendor, do one of the following:
Accept only a partial delivery
- Accept the order in full and then follow the steps listed in the section Track Damaged/Expired Stock
What to do if Guests Return Damaged/Expired Products?
If guests return damaged/expired products:
- If guests return products that are damaged/expired, you need to process a refund.
You can decide whether you want to restock or not at this stage.
- If you restock the product, the quantity is restocked in the Floor quantity of the center.
- To track the product:
a) Audit the inventory to move the quantity from Floor to Store.
Learn more: Audit and Reconcile
b) Follow the steps listed in the section Track Damaged/Expired Products.
- If you decide not to restock the product, and just discard it instead, you can use the Customer Product Returns report to track the quantity of returned products discarded over a period of time.
You can view this report from the center level Inventory > Reports > Returns > Customer Returns. The Quantity column displays the returned quantity. The Restocked Quantity column specifies Yes or No to indicate if the quantity was restocked or not.
The difference between Quantity and Restocked Quantity gives the number of the discarded quantity.
For example, if the total for the Quantity column reads 25 and the Restocked Quantity shows No for 5 of records, then it means that 5 products have been discarded, assuming each record has the Quantity listed as 1 (unit).
To view the sum of these two columns, you can download the report as an Excel file and compare both these columns.