Vendor Replacement/Returns Process PO20/PO31

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Stephanie
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    Good Morning,

     

    We are looking for some feedback on the below IC/AP related issue below.

     

    Scenario

    A receiver was made on a purchase order for the incorrect product

    A return with the vendor was requested, along with a request for the correct product

    A credit was expected from the vendor – so a PO31 was completed

     

    Actions

    Vendor shipped correct product at no charge & picked up incorrect product

     

     

    In the above situation, we now have an open credit to close out, and since the return has been shipped in the system it can not be canceled/deleted.  Another issue is that the correct product can not be received as no charge because it will incorrectly skew the average price causing the need to update the pricing using a paint screen.  It has been noted that the return should probably have not been completed but AP also noted that since there is not an invoice against the PO, nothing can be done on their end.  Their recommendation is to close the return.  If a PO31 close can not be completed AP would process a “dummy” credit and enter a NOPO invoice (which is not their best practice).

     

    Additional Thoughts

    In the situation where the wrong product was shipped and received, should the invoice and receiver be backed out and a new line added to the PO to reflect the product that was actually shipped and is being returned?  Should this be completed outside of the PO and entered into the comments or other areas? 

     

    ***In the case of Inventory, should an adjustment be done to reduce the inventory until the issue has been resolved and then adjust the inventory back into stock?  What is the Lawson Best Practice for this type of scenario especially for Inventory items where the wrong product is received and invoiced but the vendor completed a replacement?***

    Should an enhancement request be made for the PO31 process to give the option for a return when credit isn’t expected? 

     

    Any feedback is greatly appreciated! 

     

    Thank you,

     

    Stephanie M. Kowal

    Supply Chain System Administrator

    Telephone: 413-322-4080  Fax: 413-322-4042

    Stephanie Kowal | skowal@rpic.com
    JonA
    Veteran Member
    Posts: 1163
    Veteran Member
      You should still be able to cancel the return even if it's in "waiting for vendor action" status. The quantity will return to stock at the original PO cost- there will be a "VI" transaction line in IC50.

      There should be no need to receive the product again. The vendor replaced the incorrect product with the correct product and as long as the quantity is the same that should be square.

      I'm confused about whether or not you will be invoiced for this item. But it sounds like you're not expecting an invoice. Free stuff? If so, after canceling the return, adjust the receiver, change the line to no cost, and receive again. Yes it will affect the average cost but you should want this. You received free product, pass the savings onto the departments. I guess if this item is a patient charge item there may be an issue if you're charging a higher markup than allowed but otherwise let it skew. Eventually the cost will normalize with subsequent PO receipts and if you let your SOH drop to zero your next PO receipt will return the average cost to the actual cost. That's what average costing is all about.

      If you are expecting an invoice then you don't need to do anything after you cancel the return.

      You can certainly add a comment to the PO explaining what transpired with this.

      So I would not do any adjustments to your inventory, no quickpainting. If it's free, cancel the return, adjust the receiver, change to no cost and receive again. If an invoice is coming, cancel the return and wait for the invoice. I should note we are on 9.0.1 MSP 7 ESP 8.
      Jon Athey - Sr. Supply Chain Analyst - Materials Management - MyMichigan Health