If you are working in a multi-store environment, you may encounter a situation when a customer returns an item that they originally purchased at a different branch.

So, for example, the customer purchases the item at Store A, but then returns it to Store B.

In this scenario, our recommended procedure is to locate the original transaction in Cloud POS and return it.  You can find out more about how to do this here:  Returning an item 

When you do this, the item will be returned at the current cost price of the selling store (Store A in our example), and the average weighted cost price of the item at Store B will be recalculated.

In doing this, it helps to ensure that the average weighted cost of the item remains accurate at Store B.

Why is this important? 

Let's assume that Store A pays the supplier £10.00 for the item, but Store B only pays £2.00 to the supplier for the same item.  When the item is returned and becomes part of the stock at Store B, that has increased the average cost of the stock of that item held at Store B.

For more information on average weighted costs, please see this article:  Understanding Average Weighted Cost

Some exceptions

The platform can only recognise the item was purchased from a different location to the one to which it is being returned, if the original transaction is recalled for return in POS.  If the item is added to POS and then set to be a return, there is no link to the original transaction.  In this situation, Cloud POS will use the returning store's current cost price.

If the transaction is saved as a work order before the return is tendered (for example, you may do this if you are carrying out an exchange for the original item), then the original transaction ID is lost.  In this scenario, the returned item cost will be that of the store processing the return, because the information about it being bought from another store is lost when the transaction is set to an order.