Report Return for Credit

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 where the parts are located, 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 credit, in the receipt function. 

When you enter the inspection results, faulty parts can be returned for credit. The return cause can, for example, be problems with the quality or a delivery made by mistake. The financial burden of returned parts is placed on the supplier, i.e., a credit invoice is required when returning parts with a Company Owned ownership type. A replacement order can be created for the returned parts. (See the activity description for replacement order for further information).

A return for credit is normally entered per return cause in the appropriate tab when you enter 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.

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 Credit. 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. Notice 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  the supplier shipment, if you still 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

System Effects

A credit invoice is required when returning parts with a Company Owned ownership type. A replacement order can be created for the returned parts. The financial burden of returned parts is placed on the supplier.

If an outside operation item is credited, the remaining quantity for the operation after the outside operation is decreased by the credited quantity. This is displayed in Shop Order/Operation. The operation history transaction is updated.

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 credit 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 credit.

  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 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 click New.
  6. Enter the quantity returned. You can specify this either in purchase unit or in inventory unit. The corresponding column reflects the quantity in the other unit. When you are returning 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 Credit by using the list in the proper column.
  9. For inventory registered purchase parts, specify the location number of the warehouse in question by clicking List. You can only choose 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. You can do this in the Purchase Order Receipt window and in related tabs by using the List of Values 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 Credit by using the List of Values. Click OK.
  5. The Register Result dialog box opens automatically. The return cause is indicated on each line and the quantity returned appears automatically. If too many lines are displayed, select a line and remove it by clicking Remove. 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.