Re: How to handle vendor return?

here is a general overview of our process for dealing with bad parts from
vendors....

- all purchased parts are received with a 'u' transaction, even if  obviously
bad  at time of
     receipt (because an invoice is likely already sitting in our a/p
department, and we've
     found it is easier to let a/p do std processing and then follow up on
problems later -
     which may strike you as odd, but we found that the time wasted due to
confusion caused
     by not receiving the po was extensive / got to be expensive)
- when material is found to be non-conforming:
      - plant notifies buyer via a non-conforming product report, isolates
inventory in a non-
          nettable warehouse/location
      - buyer notifies vendor, who can decide if they want the parts sent back
or scrapped at
          our facility
      - buyer updates the non-conforming product report with appropriate
disposition, forwards
          to material handling group
      - VS transaction performed by materials technician if vendor said scrap
parts / VR
          transaction performed if vendor said return parts
      - copy of non-conforming product report delivered to a/p department
      - our company always debits the supplier / takes the value off of the next
payment to vendor...
          we do NOT wait for credit letters from vendors
      - a/p is able to process against the VR or VS transaction, as it will
already be performed in
          system when they get the non-conforming product report
      - if more parts are needed, buyer cuts an entirely new purchase order
- so our non-conforming product report is the key to the entire process, and
includes information
     like:  item # / vendor / qty / po# / non-conformance detail / price ea /
etc.

we have never had a problem with the vr or vs transaction
the transaction we do stay away from is the vc, because we don't want to clutter
the po which
    already had a problem more by getting additional parts / invoices against it

bjs








"Roel Bakker" <RBakker@mhimee.nl> on 11/15/2001 03:31:27 AM

Please respond to bpcs-l@midrange.com

To:   BPCS-L@midrange.com
cc:    (bcc: Brett Siikarla/IS/Finance/Corporate/KI-Inc)

Subject:  How to handle vendor return?



Dear BPCS colleagues.

We are on BPCS 6.1.1 and are wondering how to handle vendor returns. We
believe the VR transaction is useless, as it does not adjust the order
and quantity costed (in case an invoice has been received).

We are now thinking of using the B transaction for items to be sent back
to the supplier: supplier will get a customer number in BPCS. We will
make a customer order (with a new order class, recognizable for our
Finance Department), pick, ship and send an invoice the supplier instead
of wating for an credit note.

Please let me know your opinion ( or the method(s) used in your
business.


Thanx,


Roel Bakker
Production Planning & Procurement
Turbocharger Division
MHI Equipment Europe B.V.
Tel:      0031-36-5388223
Fax:     0031-36-5388222
E-mail: rbakker@mhimee.nl

_______________________________________________
This is the SSA's BPCS ERP System (BPCS-L) mailing list
To post a message email: BPCS-L@midrange.com
To subscribe, unsubscribe, or change list options,
visit: http://lists.midrange.com/cgi-bin/listinfo/bpcs-l
or email: BPCS-L-request@midrange.com
Before posting, please take a moment to review the archives
at http://archive.midrange.com/bpcs-l.