Entering Return to Vendor Purchase Orders

Return to vendor orders are used in situations where material will be removed from inventory, returned to the vendor, and a credit will be received. This situation is handled by creating a purchase order for a negative quantity.

Configuration

No specific configuration required.

Process

There are two options for creating a return to vendor purchase order. Both options are outlined below.

Creating a new purchase order for the quantities to be returned

  1. Purchasing > Order Entry. Enter the vendor that the material is being returned to. Make sure that the facility is where the inventory current resides. For example, if the material has failed QC and has been quarantined in a non-production facility, be sure to specify that non-production facility on the PO.
  2. Ensure that the term codes are correct on the order.
  3. Add a line to the purchase order. Specify the part number being returned, the charge to account (the inventory account where the inventory is currently located) and the quantity, in a negative number.
  4. Enter the price that the vendor is allowing you for the returned material. This may be the same as the price that you originally paid for the material, or may be less, if the vendor deducts a percentage of the price originally paid for a restocking fee. The system requires that this be a positive number. Verify the extension and the total amount for the PO line are negative which indicates that the vendor will be issuing a credit to your account. Click "Save" and "Exit" to save the line, then again to save the header.
  5. Purchasing > Receive. Enter the lots that are being returned to the Vendor and receive the purchase order. This process will remove the lots from stock because it is a negative purchase order. Click "Apply".
  6. Purchasing > Invoice. Enter a "dummy" invoice for the return to the Vendor. If the check has actually been received from the Vendor, select the "Print Check Now" flag to process the payment. If the payment has not been received, the payment can be processed later through manual checks or a check run. Click "Apply".
  7. Accounting > Manual Checks. To process the vendor's payment, move it to the right side of the manual check form and select the "Apply" button. Often times a vendor will not send a payment and the credit will be applied to future orders. This is handled through the check run and manual check forms by deducting the credit from the total amount due to the vendor.

Using the "New Linked PO" feature

The "New Linked PO" button is available when running purchase order reports via Purchasing > Order Reporting.

  1. Purchasing > Order Reporting. Enter the appropriate criteria in the pre-filter.
  2. Click the "View" button to display the report.
  3. Select the purchase order that the material was received on.
  4. Click the "New Linked PO" button to display the Purchase Order Entry form. The form will populate with the vendor already specified.
  5. Click the "Copy PO" button.
  6. Select the purchase order number again and click continue to display the Select Order Lines To Copy form. This form will display with all the purchase order lines on the right hand side of the form. Users can move any lines that should not be copied to the left hand side of the form via the "Remove" arrow button.
  7. Once all the appropriate lines are indicated on the right hand side of the form, click the "Continue" button.
  8. At this point users can change the quantities to be the negative amounts that are being sent back and save the order.
  9. The order can then be received and invoiced as indicated in steps 5-7 in the section above.