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The following section describes the procedures to be followed in order to properly install and configure the RTV (Return to Vendor) System. These procedures should be completed before any RTV transactions are processed on the system. The following information is applicable to the 2.2M database revision of Stream II. The information in this configuration guide is current as of the release date of this document which is printed on the bottom of each page.

RTV Installation and Configuration Procedures

1. Install the RTV Programs. - The following programs are required in order to process RTV shipments using Stream II. These programs and related overlays, and the appropriate data and index files should be installed by Cove Systems personnel. Several of the programs used by the RTV system are also used to perform other functions such as creating sales orders, creating and editing Customer and ShipTo records, etc., and these programs are located on several different menus. A brief description of each of the programs used to process RTV transactions is listed below for your convenience. These brief descriptions discuss only how each program is used by the RTV system. For more information about each of the programs listed below, you should refer to the Procedures and Program Reference sections of the appropriate manuals. For example, if you would like to find out more about the Sales Order Entry program, you should refer to the appropriate sections of the Marketing/Sales Order Entry Manual.

1. Vendor Master (FV080S01) - Used to create and maintain the vendor records used by the RTV system.

2. Customer Master (FV054S05) - Used to create and maintain the customer records which are used by the RTV system.

3. ShipTo Address Selector (FV099M14) - Used to select the shipto address record to be used for each RTV sales order or invoice and to create or edit ShipTo address records.

4. Sales Order Entry (FV710S05) - Used to create and edit RTV Sales orders.

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5. Invoicing/Order Completion (FV712S02) - Used to complete RTV sales orders or to create RTV invoices when you wish to process an RTV shipment without first entering a sales order for the shipment.

6. RTV Invoicing Overlay (FV712G20) - This program is called by the invoicing program when the RTV flag is set to "Y" and it creates an accounts payable credit memo for the vendor specified in the SoldTo section of the invoice, or the ShipTo section of the invoice if the "RETURN TO VENDOR" customer record is used on the invoice.

7. Pending File Management (FV161S01) - The Pending File Management program is used to view the open and closed records in the Pending file and to clear open pending records from the pending file by creating accounts payable or accounts receivable invoices for the open pending records. The Pending File Management screen also may be used to return the open or outstanding inventory items in the Pending file to inventory as they are received back from a vendor or customer. The Pending File Management program is completely documented in the Program Reference Section of the RTV Manual.

8. Pending File Report (FV161R01) - This program produces a report of the records in the pending file and allows you to select the records to be output based on the record status, creation date, or item number. The report allows you to output the pending records in both Bill To and ShipTo Company order and can be used as a Pending Valuation report for Financial Reporting purposes. Note: If you are installing the RTV system on a system that already has records in the Pending file, you need to maintain a copy of the older version of this report to complete the installation. Do not install this file until you have performed the conversion procedures described later in this document.

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9. Create ShipTo Addresses for Vendors (FV099L10) - This program is used to create ShipTo records for each vendor in the Vendor Master file and to attach these records to the "RETURN TO VENDOR" customer. As the program runs through the vendor file it checks the ShipTo file for a record with the same company name as the vendor being processed, and an account number of COVE-RTV. If a matching record is found in the ShipTo file, the program checks the next record, if no matching record is found, then a new ShipTo record is created with the account number COVE-RTV using the information from the vendor record. Since the program skips existing ShipTo records, the program may be re-run as required to synchronize the RETURN TO VENDOR ShipTo records with the vendor records in the Vendor Master file. Note: When the "RETURN TO VENDOR" customer record is used to process RTV shipments, the ShipTo company name is used to identify the vendor to which the shipment is being sent. Since the company name is used to identify the vendor, you may edit the address in the ShipTo record to deal with situations in which the vendor requests that returns be shipped to an address which is different than the address specified for the vendor in the Vendor Master file. Please note that the company name in the shipto record should NOT be edited as this destroys the link between the Shipto record and the vendor record it was created for.

10. Load Pending File with Inventory Costs (FV161I09) - This program is used to convert existing Pending file records to the current Pending File record format during installation of the RTV system. The program only needs to be run if you have records in the Pending file on the date that the RTV programs are installed. Before the release of the RTV system, open Pending records were valued using the average cost of each inventory item stored in the Inventory Master file. The current design of the Pending File and RTV system require that each Pending record store the average cost of the inventory item at the time the Pending record is created. This handles situations where the average cost of the inventory item changes while the pending records for the item are open and allows the effect of these changes to be tracked and posted to the income statement.

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2. Determine if any Pending records exist in the Pending File and if they need to be converted to the new Pending record format. - If your system already has records in the Pending file, these records will need to be modified so that they are compatible with the newer records which will be created by the RTV programs. Before the release of the RTV system, open Pending records were valued using the average cost of each inventory item stored in the Inventory Master file. The current design of the Pending File and RTV system require that each Pending record store the average cost of the inventory item at the time the Pending record is created. This handles situations where the average cost of the inventory item changes while the pending records for the item are open and allows the effect of these changes to be tracked and posted to the income statement. To convert existing Pending records to the new format, the following procedures should be performed.

1. Halt all processing of Pending transactions. No Loaner Invoices, IFT Transfers, or RTV transactions should be processed while this procedure is being performed.

2. Run a report of all existing pending records with a status of "O" (open) using the older version of the Pending File Report. This will value the open Pending records using the current average weighted cost of each inventory item which is stored in the Inventory Master File. Keep the report as it will be used to determine the amount of the adjustment to be made to the General Ledger as a result of the Pending record conversion.

3. Run the Load Pending File with Inventory Costs program. This program runs through the records in the Pending file and finds the original invoice lines from which the Pending records were created. It then moves the average cost from the appropriate invoice line into the cost field of the Pending record. This has the effect of revaluing the Pending records based on the cost of the item at the time the Pending record was shipped out to the vendor or customer.

4. Run the new version of the Pending File Report selecting only open records. This will value the open Pending records based on the cost that was loaded in the previous step. Retain the report as backup for the adjustment that will be made to the General Ledger as a result of the Pending record conversion.

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5. Make an Adjustment to the General Ledger for the change in the value of the open Pending records. Compare the pre-conversion and post conversion Pending File Reports and calculate the change that resulted from the Pending record conversion. This change is a result of movement in the average weighted cost of inventory items after the pending records for the items were created. This change needs to be posted to the General ledger in order to keep the books in balance. The adjustment amount should be posted to the Inventory Control account and to an income statement account. You may wish to use one of the special purpose income accounts discussed later in this document for this entry or you may wish to use a different income statement account for the entry. The entry to the Inventory Control account is necessary because this process changes the value of the inventory subledger. The Inventory subledger is composed of the total of the value (based on average cost) of all items in all warehouse locations and the value of all open Pending records in the Pending file. Since we are changing the valuation method used for the Pending records, we need to also adjust the Inventory Control account for the amount of the change. Please see the Application Overview section of the RTV Documentation for more information about how Pending file transactions affect the General Ledger.

3. Setup the RTV Parameters in the System Control File. The RTV processing applications make use of the information that is entered for the following parameters in the System Control File (File 248). These parameters must be properly set up by the system administrator or by Cove Systems personnel before any RTV shipments are processed. Some of the parameters listed below may be set up on a branch, group, or user by user basis as required.

1. 161S01AP - Determines whether or not the operator may create an accounts payable credit memo in the Pending Management Screen (FV161S01). If the parameter is set to "Y", the system will allow the operator to select open pending records and convert them into an A/P credit memo from within FV161S01. If the parameter is set to "N" or if it is missing, then only a sysop may create an accounts payable credit memo in this program.

2. 161S01AR - Determines whether or not the operator may create an accounts receivable invoice in the Pending Management Screen (FV161S01). If the parameter is set to "Y", the system will allow the operator to select open pending records and convert them into an accounts receivable invoice from within FV161S01. If the parameter is set to "N" or if it is missing, then only a sysop may create an accounts receivable invoice in the program.

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3. 161S01DI - Determines the default index used by the Pending File Management Screen when the program is called from the Menu. Valid settings for this parameter include "SHIP", "COMPANY", "INVOICE", and "PO". If the parameter is blank or missing or if "SHIP" is entered into the Info field for the parameter, the Ship Company index is used by the program as the default. If "COMPANY" is entered into the Info field for the parameter, the program uses the Company index as the default. If "INVOICE" is entered into the info field for the parameter, the program will use the Invoice number index as the default display index. If "PO" is entered into the Info field for the parameter, the program will use the Purchase order index as the default display index for the records in the Pending file.

4. 161S01RI - Determines whether or not the operator may process a return to inventory in the Pending Management Screen (FV161S01). If the parameter is set to "Y", the system will allow the operator to select open pending records and to return the items into inventory using FV161S01. If the parameter is set to "N" or if it is missing, then only a sysop may process a return to inventory in the program.

5. 161S0101 - Determines the autopost number of the general ledger account to which inventory gains and losses will be posted when Return to Inventory transactions are processed using FV161S01.

6. 710S05RV - This parameter determines whether or not the operator is allowed to access the RTV flag in the Sales Order Entry program. If the parameter is set to "Y" or if it is blank, the operator may access the RTV field in the Sales Order Entry program. If the parameter is set to "N", then the operator may not access the RTV field in the Sales Order Entry program.