Report Return for Rework

Explanation

Inspection results can be entered for inventory registered purchase parts, non-inventory registered purchase parts, and no-number parts. This must be done when the quantity to inspect is larger than zero (0). For inventory parts, you must enter the inspection results before you are allowed to move the parts into a stock location. For non-inventory parts or no-number parts, the results must be entered to complete the receipt. Use of serial numbers and pallets affect the handling.

You can enter the inspection results via Purchase Order Receipt (and some related tabs) or Inspection Management; both windows lead to the same dialog box. Inspection results can be reported, regardless of the parts' location, i.e., in an arrival, inspection, or stock location.

If you are using IFS/Quality Management and have created an analysis, tested the parts in question, and reported the results in this component, you can use these results as a guideline when you enter the inspection results and return parts for rework, in the receipt function. 

When you enter the inspection results, faulty parts can be returned for rework. The return cause can, for example, be problems with the quality. The financial burden of returned parts is placed on the supplier, i.e., the parts need to be reworked. When parts are returned for modification, they are counted as a backorder; you can do arrival registration after the modification is done.

A return for rework is normally entered per return cause in the appropriate tab when entering the inspection results. You can specify several return causes for a receipt line. Do this by entering one line for each return cause. Example: You have a receipt line with ten parts. Six parts are entered as approved, one part is returned by the return cause A on one line, and three parts are returned by the return cause B on a second line. To make a full report, the sum of the quantity approved and any quantities scrapped or returned should be the same as the quantity to inspect. Otherwise, you have done a partial report of the inspection results. Note that for catch unit enabled parts, you must specify the return catch quantity for rework. 

When you are returning several lines with the same return cause on a receipt line, such as serial numbered parts, it is time-consuming to enter a new line and specify the return cause for each serial number. Instead, you can select all lines in question in Purchase Order Receipt/Single and specify the return cause in advance by right-clicking and then clicking Return Receipt Lines. A dialog box opens and you can specify a return cause for all selected lines. You also must choose the return type Return Rework. When this is completed, the dialog box for entering the inspection result opens with the return cause specified per serial number already filled in in the proper tab. You can remove a line that is selected by mistake. It is also possible to change the return cause on a single line. In Purchase Order Receipt/Pallet, you can do the same for several pallets to be returned.

When handling pallets, you also must indicate from which pallet you have returned parts by entering the pallet ID. Note that a pallet must be moved into a pallet quality location before you are able to return any parts.

Once you do the return, the parts will be included in a new supplier shipment or you also have the facility to connect the returns to already existing supplier shipments which had not been picked so far. You need to go through the supplier shipment process in order to deliver parts to your supplier.

If you, for some reason have planned returns to a supplier shipment by mistake, you can undo this action from the supplier shipment level before it is being delivered. After the delivery of supplier shipment, still you think that you want to undo this action, you can do it in the purchase order receipt level. For parts where the return is undone, you must enter an inspection result before they can continue in the work flow.

Note: Rentals cannot be returned as rework/credit and/or scrap during purchase order inspection.

Prerequisites

• The parts must have been reported as arrived in Register Purchase Order Arrivals.
• The receipt line must have an inspection demand, either an inspection code or a quantity specified manually in the receipt function.
• The receipt line should be in the status To be Inspected.
• Pallets must be located in a pallet quality location.
• A proper return cause must have been entered in Procurement Basic Data/Return Cause.

System Effects

• The parts are returned to the supplier for modification. Then you must enter a new arrival when the returned parts arrive at your dock.
• If an outside operation item is returned for rework, the remaining quantity for the outside operation is increased by the quantity on the receipt line. This is displayed in the Shop Order/Operation tab. The operation history transaction is updated.
• Note that if you returned any parts with supplier material (component parts), it may be the case that some or all of the supplier material may have already been issued through back-flush. If the component parts were already back-flushed, and upon registering the arrival of parts that were returned for rework, back-flush will not take place again. Only the component parts that are yet to be back-flushed will be issued.
• If you are using IFS/Quality Management in the receipt process, and if you have returned parts before an analysis is created, the quantity to inspect indicated on the Purchase Order Receipt window will be recalculated based on the quantity available when you create a new analysis. An existing analysis will not be affected. 
• For inventory-registered purchase parts with a Company Owned ownership type, postings are created with the debit posting type M14, Scrapped for Credit/Returned Goods in Inventory, and the credit posting type M1, Inventory. However, postings are not created when returning parts that have either Customer Owned or Supplier Loaned ownership types. For inventory parts with Company Rental Asset ownership inventory transactions for the return are created without postings, and in addition purchase transactions are created with debit posting type M91, Non-Inventory Receipt with PO Not-Invoiced, and credit posting type M92, Purchase Non-Inventory Material Arrival.
• For consignment handled parts (a Consignment ownership type), postings are created with debit posting type M61, Consignment Stock Receipt, and the credit posting type M60, Consignment Stock.
• If purchase charges where booked separately at purchase order arrival, then the charges will be booked separately when parts are returned to the supplier for rework using the debit posting type M196 - Return/Scrap of Charges.
  For detailed descriptions of all system events and posting types, see the document Financial Events and their Bookings.

Window

Purchase Order Receipt
Inspection Management

Related Window Descriptions

Register Result
Register Result/Return
Inspection Management
Purchase Order Receipt
Purchase Order Receipt/General
Purchase Order Receipt/Single
Purchase Order Receipt/Pallet
Purchase Order Receipt/Misc
Return Cause

Procedure

Report inspection results and return parts for rework.

1. Either populate or query for the order number in question. If you have several receipts for an order you also must select the correct receipt number. In the Purchase Order Receipt window and related tabs, do this by using the list in the Order No field.
2. Select the desired line.
3. Right-click and then click Register Inspection Results. The Register Result dialog box opens.
4. Enter the approved quantity in the Approve field. You can choose to specify this in purchase unit or in inventory unit. The corresponding field reflects the quantity in the other unit. Click Apply to save this entry.
5. Select the Return tab, and then click New.
6. Enter the quantity returned. You can specify this in either purchase unit or in inventory unit. The corresponding column reflects the quantity in the other unit. When you return serial numbered parts, the quantity returned should always be 1.
7. Specify a return cause. Either enter an existing short code or search for it by clicking List.
8. Indicate the return type Return Rework by using the list in the proper column.
9. For inventory registered purchase parts, specify the location number of the desired warehouse by clicking List. You can choose only from among the current locations for this receipt line. If you are returning a specific serial numbered part, a part from a particular lot or batch, or a part with another revision number, search for the proper line by clicking  List or enter the identity in the proper field. This column is not used in connection with non-inventory registered purchase parts or no-number parts.
10. For pallet-handled parts, specify from which pallet you are returning parts by indicating a pallet ID.
11. If you are returning parts and want to specify several return causes, enter new lines by clicking New.
12. Click OK.
13. If you are returning parts for a receipt line that has been reopened after it has been received into stock, and the part is serial tracked at receipt and issue but not serial tracked in inventory, then a dialog box appears where the serial numbers to be returned should be identified. Click OK when completed.

Specify the return cause for several lines or pallets and then enter the inspection results:

1. Either populate or query for the desired order number. If you have several receipts for an order, you also must select the correct receipt number. In the Purchase Order Receipt window and related tabs, do this by using the list in the Order No field.
2. Select the Purchase Order Receipt/Single or the Purchase Order Receipt/Pallet tab.
3. Select the desired lines.
4. Right-click and then click Return Receipt Lines and a dialog box is displayed. Indicate the return cause by clicking List. Select the return type Return Rework by using the list. Click OK.
5. The Register Result dialog box automatically opens. The return cause is indicated on each line, and the quantity returned is automatically filled in. If too many lines are displayed, select a line and remove it by using the Remove button. In this case, update the quantity in the Approve field.
6. Click OK.
7. If you are returning parts for a receipt line that has been reopened after it has been received into stock, and the part is serial tracked at receipt and issue but not serial tracked in inventory, then a dialog box appears where the serial numbers to be returned should be identified. Click OK when completed.