Return to Supplier Processing

Return to supplier processing enables you to return damaged or unwanted products from your supplier. If you do not accept the goods received, because they are damaged, or do not meet other quality standards, you can send the goods back to the supplier. You can also forward customer returns to your supplier in a third-party ordering process. All the data related to the return to supplier process is saved in the return to supplier document (created with reference to either an inbound delivery or a third-party customer return) and the outbound delivery documents.

This scenario explains how to process a supplier return for inventory items.

Assume that you have already created Purchase Order, Goods and Service Receipt/ Inbound Delivery & Supplier Invoice documents.

There are two views of the return to supplier;

1. Buyer’s view.

2. Logistics view.

 
If you create the return to supplier from one of the logistics work centers, you can only request the goods issue. The buyer, on the other hand, can also decide on the follow-up process and request a credit memo and/or a replacement delivery. 

Step 1 – Create Return to Supplier

1. Go to the Outbound Logistics work center.
2. Go to the Common Tasks.
3. Select New Return to Supplier.
4. Select the Inbound Delivery item that you want to return.
5. Select the Selection check box & Select Next.
6. In the new screen enter the Return quantity & Reason for goods return.
7. Review the Supplier Return & Select Finish.
8. Now the Supplier Return is Released.

==>

==>

Step 2 – Post Goods Issue

1. Go to the Outbound Logistics work center.
2. Go to Delivery Control view.
3. Select Delivery Proposals sub-view.
4. Select the Query Return to Supplier (RTS) Proposals.
5. Search with RTS ID 94.
6. Select Post Goods Issue.
7. In the new screen select Propose Quantities.
8. Select Release.

==>

Step 3 – Decide a Follow-Up decision for Return to Supplier.

1. Now go back to Purchase Requests and Orders work center.
2. Go to Returns to Suppliers view.
3. Select All Returns to Supplier.
4. You can see that Return to Supplier 94 is ‘Released’.
5. Select Edit & you can see the task – Provide Follow-Up Decision in Return to Supplier 94.

Enter the Follow-Up Decision in the Return to Supplier 94.

Case 1: Credit Memo

Case 2: Partial Credit Memo & Replacement

Case 3: Replacement

Case 1: Credit Memo.

• In case of credit memos, the delivery status of the purchase order stays Completely Delivered.
• If the original invoice has already been posted, the invoice processing status is set back to In Process and is finished later with the posting of the credit memo.
• When you enter the follow-up decision, return to supplier status changes to Finished.

1. Select the Follow-Up Decision as Credit Memo in the return document.
2. Select Save & Close.
3. Now go to the Supplier Invoicing work center.
4. Go to the Invoice Entry view.
5. Select the query All Returns to Be Invoiced.
6. Search for relevant Outbound Delivery ID.
7. Select New Credit Memo button.
8. Fill the mandatory details & select Calculate Total Amounts button from Actions.
9. Select Check & now the document is Ready for Posting.
10. Select Post.

==>

==>

Once the follow-up process is finished (the follow-up decision is made and the delivery processing is finished), the status of the return to supplier is set to Finished.

Case 2: Partial Credit Memo & Replacement

• In case of partial replacement deliveries, the delivery status of the purchase order is set to Partially Delivered.
• The delivery status is set to Completely Delivered once the replacement delivery is delivered completely.

Since the Replacement Quantity is 5 each, system proposes the Open Purchase Order Quantity as 5 each in the Purchase Order view of Inbound Logistics work center. Soon after you receive the replacement quantity from your supplier, you can post goods receipts for 5 each & the delivery status will be set to Completely Delivered.

Similarly the Credit Memo Quantity is 5 each & hence system proposes the Credit Memo quantity as 5 each in the Invoice Entry view of Supplier Invoicing work center. Now you can create & post the Credit Memo for your supplier as per the previous steps.

Case 3: Replacement:

• In case of replacement deliveries, the delivery status of the purchase order is set to Partially Delivered.
• The delivery status is set to Completely Delivered once the replacement delivery is delivered completely.

Since the Replacement Quantity is 10 each, system proposes the Open Purchase Order Quantity as 10 each in the Purchase Order view of Inbound Logistics work center. Soon after you receive the replacement quantity from your supplier, you can post goods receipts for 10 each completely & the delivery status will be set to Completely Delivered.

Once the follow-up process is finished (the follow-up decision is made and the delivery processing is finished), the status of the return to supplier is set to Finished.

End of the process.