OVERVIEW: Occasionally an order sent to one of your customers will either be rejected outright, have one or more packages rejected while others are accepted, or have part of a package rejected (a tag representing 20 units is sent but the customer only chooses to accept 10). Depending on the scenario the process to follow in Distru will vary.
Table of Contents:
A. WHOLE TRANSFER REJECTION
A Whole Transfer Rejection is when the entire transfer and every package on it is rejected outright and your customer decides to not keep any of the product. When your customer does this it will cause a few things to happen in Distru:
A Return for all of the packages will automatically be made.
All packages on the Sales Order and associated Invoice will show a "Returned" tag.
For you to be able to utilize those rejected packages for other orders, make sure to head to Metrc directly and accept the rejected transfer back into your Metrc license. Until that happens those rejected packages will be unavailable to use in both Metrc and Distru. Once the Rejection is accepted back into your Metrc license you will see those packages showing as Active in your Distru license again.
When a Whole Transfer Rejection takes place we recommend that the Invoice associated to the Rejection is deleted. If you or your customer do want a record of the transaction regardless, we recommend changing the line item pricing of your products to $0 on the Sales Order, updating the Invoice to show this, and then adding a note to the Invoice stating that the order was rejected outright and all packages were sent back. Then download a newly updated Invoice as a .pdf to keep for your records and to also send to your customer.
If your Distru account is integrated with Quickbooks Online and you've chosen to "Sync Returns" in Distru, the QBO invoice will zero out and show as a Credit Memo (only if the invoice has been paid). You can keep this Invoice in QBO as a means of recording that your customer does in fact have credit coming to them (if they've paid already), or you can choose to delete the invoice from QBO entirely.
B. FULL PACKAGE REJECTION
A Full Package Rejection is when one or more (but not all) packages on a transfer are rejected by your customer. When your customer does this it will cause a few things to happen in Distru:
A Return for the rejected packages will automatically be made.
All rejected packages on the Sales Order and associated Invoice will show a "Returned" tag.
For you to be able to utilize those rejected packages for other orders, make sure to head to Metrc directly and accept the rejected packages back into your Metrc license. Until that happens those rejected packages will be unavailable to use in both Metrc and Distru. Once the packages are accepted back into your Metrc license you will see those packages showing as Active in your Distru license again.
When a package is properly rejected off a manifest by your customer, Distru will visually mark that package with a "Returned" marker. It is then up to you to manually remove it from the invoice, should you choose to. You can do so by:
Editing the invoice
Finding the rejected package/line item (it'll be clearly marked with a "Returned" tag)
Clicking the trashcan icon to the far right of the rejected package/line item to remove it from the Invoice.
Save the Invoice.
Download a new .pdf of the Invoice and email to your customer.
If your Distru account is integrated with Quickbooks Online, removing rejected packages from your Distru invoice will update the QBO invoice $ amount. If your customer has already paid, rejected packages and their $ amounts will show as a Credit Memo on the QBO invoice.
C. PARTIAL PACKAGE REJECTION
A Partial Package Rejection is when a portion of a package (not the entire package) is rejected by your customer:
EXAMPLE: A tag representing 20 units is sent to your customer, but they choose to only accept 10 units. This will display on the .pdf of the Metrc manifest as "Accepted: 10/20 Units".
Other than showing as "Accepted: 10/20 Units" on the .pdf of the Metrc manifest, nothing else will automatically happen in either Metrc or Distru. Whereas a Full Package Rejection allows for you to accept that fully rejected package back into your Metrc license (and causes that package to then appear as Active in your Distru account), nothing happens in Metrc or Distru to represent those rejected units coming back into either. Those 10 rejected units disappear into the Metrc ether and it is a manual fix to update both the Sales Order and Invoice, and also to adjust your inventory to accurately represent the units you have available for use.
DON'T remove or adjust the line item quantity of the partially rejected package on the Sales Order. This is very important. Doing so will unmatch the Sales Order from the associated Metrc transfer #. The quantity of an item on your Sales Order MUST match that of the outgoing quantity of the item on the Metrc transfer.
Instead, adjust the line item pricing of the partially rejected item to represent what the customer actually kept. (EX. 20 units at $1/unit were sent to your customer, making the total amount for the line item to be $20. The customer rejected 10 units. Therefore, you would adjust the total line item price from $20 to $10 to represent the 10 units they chose to keep.)
After making the $ adjustments on the Sales Order, make sure to Save and Update Invoice. This will ensure the new price is accurately reflected on the Invoice.
Although not entirely necessary, we recommend that you then edit the Invoice to add a note for your customer stating what happened and why the price is different. (EX. "10/20 units were rejected for tag # 12345, the price for this line item and tag # represent the 10 units that were accepted.)
The Invoice will still show the original number of units that were sent, but the price will now reflect only the units that were accepted/kept by your customer.
Since those rejected units "disappear" in Metrc, in order to account for them being sent back to your facility you must then adjust the source tag the partially rejected package was made from. (EX. Tag # 1 @ 100 units was used to make Tag #2 for 20 units, bringing Tag #1 down to 80 units. Your customer rejected 10/20 units for Tag #2. Tag #1 must now be adjusted by +10 to represent those units being sent back to you, so that Tag #1 will now show as 90 units.)
NOTE: Partially Rejected Packages are a little...tricky. Because of how Metrc handles the process (the units quite literally disappear and aren't represented as actively being on a tag), this is why the units on the Distru Sales Order and Invoice CAN'T be adjusted down to what the customer actually kept. The quantity on the Sales Order and Invoice MUST match that of the initial quantity of the tag when it was sent out on a Metrc manifest. This means the only adjustment that can happen that represents a Partial Package Rejection as having occurred is the change to the line item pricing on the Sales Order and Invoice (along with the adjustment to the source tag after the partial rejection has happened).
D. INVOICES: HOW ARE THEY AFFECTED?
Quickbooks Online: The general rule is: we sync an invoice to QBO whenever it changes. When the transfer recipient rejects one or more packages, Distru creates a Return but the invoice is left unaltered; it still has the same total and the same invoice items. Therefore, nothing will sync to QBO until the invoice is updated as outlined above (for example, by deleting the invoice items flagged as returned). Only then will Distru push the updated invoice to QBO.
Reporting: Invoice reporting is done on the current values of invoice items and invoice total values. Since Distru doesn't update invoices automatically when packages get rejected, no invoice reports will be affected by rejections. Once any updates are made an invoice, any related reports will reflect those changes.
Taxes: Taxes are calculated based on invoice items. Since Distru is not auto-updating invoice items whenever packages get rejected, invoice taxes are not updated by rejections. Once you remove /add / edit an invoice item, the taxes on that invoice will be re-calculated.
PDF: Since Distru is not auto-updating invoice items or invoice total whenever packages get rejected, the PDF print will remain as it was before the rejections. As soon as you update the invoice, the PDF print will reflect that new version of the invoice.
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