Handling Restocking Fees on Vehicles

Restocking fees are charges a retailer deducts from a refund when a customer returns a product. These fees help cover the costs associated with processing the return, such as inspection, repackaging, and re-shelving. Restocking fees are typically applied in the following scenarios:

• Non-defective returns: When a customer returns a product due to a change of mind or ordering the wrong item, rather than due to any defect.
• Opened or used items: When the product has been opened, used, or can no longer be sold as "new."
• Special-order or customised items: When the product was specifically ordered or customised for the customer.

Restocking fees typically range from 10% to 25% of the product's purchase price, depending on the company’s return policy and the condition of the returned item.

Setting Up Restocking Fees in Navigator

To account for restocking fees in Navigator, follow these steps:

1. Create or Modify a Nominal Code for Restocking Fee Revenue:

   • You’ll need a nominal code for Restocking Fee Revenue (or Other Income). Navigator has a default nominal code (123) for Other Income. You can either rename this code for exclusive use as the Restocking Fee Revenue code, or create a new nominal code by following Navigator’s guide for nominal code creation. This can be found here

2. Add a Receipt Nominal Code:

   • A Receipt Nominal Code is required to track the Restocking Fee when refunding money through the Stock Record.
   • To add this, navigate to:
     Vehicles > Vehicle Parameter Maintenance > Receipt Nominal Code
     Then, enter the nominal code for the restocking fee (e.g., 0.0.10.123, the default code in this case).

3. Below is an example image demonstrating this setup:

   

4. Processing the Restocking Fee Refund:

   • Once the nominal code is set, go to the Vehicle section, and on the Debtors tab, click Post Receipt.
   • Refund the customer's part of the payment as usual. Then repeat the process, but select the newly created Restocking Fee option and refund the restocking fee value.

This method ensures proper tracking of restocking fees, allowing for accurate accounting and reporting in Navigator.

If you have already refunded the customer in full through the debtors tab, a journal can simply be posted from the nominal code you refunded to, to the Restocking Fee nominal created above.