Manage Purchase Returns
Receiving compensation from a vendor for a purchased item that you are dissatisfied with is important for recovering costs and maintaining satisfactory vendor relationships. Typically, a purchaser responsible for the interaction with specific vendors would also be the person to make contact with those vendors in case of purchase returns.
Managing returns to vendors includes a series of tasks. The number and scope of these tasks generally depend on who initiates the return: the company itself (when, for example, dissatisfied with the quality of purchased items or in case of wrong delivery) or a company's own customer. Irrespective of that. A typical vendor-oriented return process may include the following tasks:
Determining the compensation agreement with the vendor.
Debiting the vendor, either by means of receiving a credit for physically returned items, or by means of a purchase allowance (if the company is not required to physically return the items).
Creating a replacement purchase order (if replacement is part of a compensation agreement)
In relation to the vendor-oriented process, there are a number of internal handling tasks:
Shipping items to the vendor (if the purchase return, including repair, is part of a compensation agreement).
Receiving replaced/repaired items.
Ensuring the accurate inventory value of the items to be returned to the vendor.
Combining several return shipments to the same vendor into one credit memo document.
The following table describes a sequence of tasks with links to the topics that describe them. These tasks are listed in the order in which they are generally performed:
| To | See |
|---|---|
Learn about the business requirements and steps involved in returns management, such as compensation agreements and inventory value considerations. |
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Get an overview of different ways to process purchase returns. |
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Use functions on an unpaid posted purchase invoice to automatically perform a credit memo process and either cancel the purchase invoice or recreate it so you can make corrections, using the simplified features in Microsoft Dynamics NAV. |
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Create a purchase credit memo to revert a specific posted purchase invoice to reflect which products you are returning to the vendor and which payment amount you will collect, using the simplified features in Microsoft Dynamics NAV. |
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Determine who supplied a certain defective serial/lot number before starting the purchase return process. |
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Ensure that after returning the item(s), your inventory is revalued using the unit cost that is connected to the original purchase entry. |
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Create the purchase return order and fill the lines with a function to automatically reverse posted purchase invoice lines or receipt lines. |
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Have the vendor compensate you for a purchased item by replacing the item. |
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Have all relevant return documents be created automatically, such as the purchase return order, a replacement purchase order, or a new sales order. |
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Return several items covered by different purchase return orders. |
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Accept and post a purchase allowance granted by the vendor because the received items are faulty. |
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Ensure that the originally received serial/lot numbers are reversed in the purchase return process. |
Handling Item Tracking Lines when Getting for Invoices/Credit Memos |
Determine where a returned defective serial/lot number originates from and if the defective lot is sold on other orders. |
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Undo the quantity posting of a return shipment where the purchase return document (purchase credit memo) has not yet been invoiced. |
See Also
Concepts
Other Resources
Manage Sales Returns
Collect Supplier Refunds
Work with Data