RE: How to handle vendor return?

George,

Thank you for your quick response.

We have already considered your solution, but there are too many 'what
if's'.
What if the part is already one month on stock and PO is fully received
and costed?
What if the invoice is already received?
In which way can we send back the parts: how do we instruct our
warehouse (via BPCS, how can we generate a packing list?


By using COM, we fully pay for materials received (including not
approved parts) and invoice the supplier (now customer) for the not
approved parts. For re-ordering I can think of two ways:
1.      Make a manual PO for the quantity sent back to the suppliers.
2.      Consolidate PO after latest MRP run.


For both solutions are pro's & con's but still I prefer using COM.
But again, thank you for responding. I hope we will get more reactions
and come up with the best solution.

Best regards,

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


-----Original Message-----
From: GeoMSagen@aol.com [mailto:GeoMSagen@aol.com]
Sent: Thursday, 15 November 2001 14:58
To: bpcs-l@midrange.com
Subject: Re: How to handle vendor return?


Roel,

I don't know of an easy solution to this and hope some of the geniuses
on this list can cook something up. Here however, is what I can tell
you. Using COM to return the vendor material would effectively remove
the items from stock and offset the AP GL account, but:

a. Wouldn't adjust the PO qty received
b. Wouldn't adjust the qty costed
c. Wouldn't interface to the AP subsystem to show a credit memo from the
vendor. The AP subsystem wouldn't balance to the GL.

The best I can come up with is using a custom transaction that is set to
affect On Hand Balance and Costing. Use a negative quantity when you
book the transaction. In theory (I have no way to test this right now)
it would reduce the on hand and reverse out the AP costing transaction.
This assumes that AP has already vouched the invoice for the full amount
originally received closing the PO.

In CEA configure the inventory event to credit Inventory and debit Goods
Returned. Configure AP credit memos to debit AP and credit Goods
Returned. You'll have to manually check for PPV. The AP clerk can
monitor the balance in the account. A credit balance represents goods
returned for which the vendor credit memo hasn't been processed.
Reconciling the account could get ugly. Wish I had a system to
experiment on as others have asked me this same question lately.

Best Wishes,

George Sagen, CPIM
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