This chapter contains the following topics:
When you ship consigned or vendor managed inventory to your customer's location, some inventory can get damaged or expired. When the customer wants to return damaged, expired or unused outbound inventory, they do so by creating a credit order. The credit order issues necessary credits to the supplier and makes adjustments for the returned outbound inventory.
You use the Sales Order Entry application to create credit orders to return outbound inventory. When you create a credit order to return outbound inventory, you must also associate the respective agreement information with it. Depending on the agreement type, and the processing option setup for the Sales Order Entry application (P4210), the system defaults the line type on the credit order.
When you create a credit order for an internally owned shipment order with a consigned inventory or internally owned VMI agreement attached to the order detail line, the system defaults the price on the order detail to zero, because an internally owned shipment order does not have any price attached to it.
You can enter the lot and serial numbers of the inventory that you return to the supplying location. After you confirm shipment of the credit order, the system updates the Outbound Inventory Item balance table (F42I021) and returns the inventory back to the supplying location. When the inventory is received at the supplying location, the system also increases the remaining quantity for the respective agreement.
This section provides an overview of returning outbound inventory and discusses how to return outbound inventory to the supplying location.
You enter a credit order manually to record a returned item and credit the current price to the customer. For internally owned shipments, the credit orders do not have a price attached. You use the credit order to update inventory balance information and agreement remaining quantity information. You enter credit orders in the same way that you enter sales orders.
When you confirm shipment of the credit order you create to return outbound inventory, the system reduces the quantity from the customer's location and increases the quantity at the supplying location. The system also increases the agreement remaining quantity when the returned inventory is received at the supplying location.
Before you enter credit orders to return outbound inventory, you must create a version of the Sales Order Entry program (P4210) that is set up to process credit orders. The credit order version should have the Line Type processing option on the Defaults tab set to the line type that is set up for credit orders. Typically, this is line type C. You should also set the Order Type processing option on the Defaults tab to the order type to use for credit orders. Typically, this is CO. You must then attach this version to the menu option that you use to create credit orders. Contact the system administrator for assistance with this task.
When you create credit orders to return outbound inventory, you must also attach the respective outbound inventory agreement to it. Depending on the processing option for the Sales Order Entry program (P4210), the system displays the Outbound Inventory Selection application with the following information:
Item number
Agreement number
Quantity on hand
Secondary quantity on hand
Outbound location type
Note: If you do not set up processing options for the Sales Order Entry program to process credit orders, the system does not display the above values in the Outbound Inventory Agreement Selection screen. |
Processing options for the Sales Order Entry program control how outbound inventory agreements are attached to outbound inventory order detail lines.
Use this processing option to identify the type of document.
To process credit orders, enter CO in this field.
Use this processing option to specify a code that controls how the system processes lines on a transaction.
Use this processing option to specify how the system resolves the outbound inventory agreement.
To process credit orders, the system does not resolve outbound inventory agreements automatically. Even if you set the processing option to select agreements automatically, the system displays the Outbound Inventory Agreement Selection application.
You must select the agreement manually to attach to the credit order.
Access the Sales Order Entry Program.
Form Name | Form ID | Navigation |
---|---|---|
Create Sales Order - Header First - Order Details Revisions | P42I01 | G4211, Create Sales Order - Detail First |
On the Sales Order Entry form, complete the following fields.
Enter the quantity of the item that you want to return to the supplying location.
Enter a code (00/UM) that indicates the transaction unit of measure for the outbound inventory credit order, for example, CS (case), EA (eaches) or BX (box). If you leave this field blank, the system populates the field using the default UOM value that you enter in the Item Master table (F4101).
Enter the alphanumeric identification number of the item that you want to return. The system populates many of the fields on each item line based on the information that is stored in the Item Master table for the item that you enter. The value that you enter can be in short, long, or third-item number format.
When you complete the outbound inventory agreement search criteria on the Order Header Revisions and Order Details Revisions applications (Sold To, Ship To, Branch/Plant, Order Quantity and Item Number), the system displays the Outbound Inventory Agreement Selection application. After you select the desired outbound inventory agreement, the system changes the line type to the one which is required for generating a credit order.
Credit orders for internally owned shipment do not have any price attached.
For customer owned VMI orders, review the list or base price to be returned for one unit of this item that the system retrieves from the outbound inventory agreement. In Sales Order Entry, all prices must be set up in the Item Base Price File table (F4106). You can override the Unit Price.
Enter a number that identifies a lot or a serial number for the item.
The system displays the agreement number of the outbound inventory agreement resolved for the search criteria that you enter.
If you know the correct outbound inventory agreement number, you can also enter it directly in this field.
Note: Alternately, you can select the Outbound Inventory Agreement Selection application directly from the Form menu on the Sales Order Entry application. You enter the required search criteria and select the agreements from the grid, to fetch the agreements for which you want to return inventory. You select all agreements for which you want to return inventory. The system populates all records in the Sales Order Entry application. You can then enter credit orders for all the agreements that you selected in the Outbound Inventory Agreement Selection application. |
When you confirm shipments for credit orders to return outbound inventory, the system reduces the on-hand inventory from the customer's location. When you receive the inventory at the supplying location, the system adds the quantity to the inventory at the supplying location and the agreement remaining quantity.
You confirm shipment for credit orders in the same way that you confirm shipments for other outbound inventory orders.
When you run the Sales Update program for internally owned shipment credit orders, the system moves the inventory from the consigned inventory account to the inventory account. You can track the movement of inventory using the Internally Owned Shipment G batch.
This section provides an overview of Return Material Authorization (RMA) and discusses how to return outbound inventory using RMA.
An RMA is an authorization from the supplier to the customer for returning outbound inventory for credit, replacement or repair. When you create an RMA for outbound inventory, you can:
Create a purchase order to receive the inventory from the customer and a sales order to ship the replacement.
Create a purchase order to receive the inventory from the customer and a credit order to return the amount charged for inventory.
Worldwide Pharmaceuticals sells medicinal and surgical goods to International Hospitals on consignment. A surgical knife received at International hospitals, was found to be damaged during shipment. Since International Hospitals has not yet paid for the knife, there is no financial return. To update the inventory correctly and to track the returned goods, a purchase order is created to receive the goods at Worldwide Pharmaceuticals from International Hospitals. Also, a sales order is created to ship a replacement surgical knife from Worldwide Pharmaceuticals to International Hospitals.
If the payment for the knife is already complete, a purchase order is created to receive the surgical knife and a credit order is created to return the amount charged for the surgical knife.
You must set up RMA default information before creating returns through the Return Material Authorization application.
This section provides an overview of RMAs, lists prerequisites, and discusses how to:
Set processing options for the Returned Material Authorization Revisions program (P400511).
Set processing options for the Work with Return Material Authorization program (P40051)
Enter Return Material Authorization
You create an RMA as an authorization from the supplier for the customer to return outbound inventory for credit or replacement. When you enter an RMA, the system creates an authorization number to track the return of inventory. You can use the RMA entry programs to:
Provide an authorization number for returning outbound inventory.
Create a purchase order to return the item to the customer.
Create a credit order to return the amount collected to the customer.
Create a sales order to send replacement inventory to the customer.
Associate the consigned or VMI order to the return.
When you enter an RMA, the system creates a record in the Return Material Authorization table (F40051) and Outbound Hold/Return Transactions table (F42I09). You can use the RMA applications to return both quantity-on-hand and quantity-on-hold.
Before you complete the tasks in this section:
Define default values for creating sales and purchase orders.
Set up RMA status UDC (40/RN)
Set up a unique document type for RMA.
Set up a version of Sales Order Entry program (P4210) for credit orders.
Set up the Return Material Authorization Defaults program. In the P40052 program you can specify the versions of the P4210 program for sales orders and credit orders, and the version of Purchase Order Entry (P4310) to use for RMAs. If you leave the versions blank, the system uses version ZJDE0001.
Use these processing options to set system default values, control which fields are edited, control system processing, and specify versions.
These processing options control the default information that the system uses when working with RMA revisions.
Enter a value from user-defined code (UDC) 00/DT for the default RMA document type, for example, R8 or R9.
Specify whether the system enters the work order number in the Sales Order Subledger field. Values are:
Blank: The system does not enter the work order number in the sales order subledger field.
1: The system enters the work order number in Sales Order Subledger field.
Specify whether the system enters the item number into the RMA when receiving parts. Values are:
Blank: The system does not enter the item number in the receipt.
1: The system enters the inventory item number for receipt from the service work order header.
Specify whether the system enters the item number into the RMA when shipping parts. Values are:
Blank: Do not enter the item number in the shipping document.
1: Enter the inventory item number for shipment from the service work order header.
Specify whether the system enters the equipment serial number into the RMA when you receive parts. Values are:
Blank: Do not enter the serial number.
1: Enter the serial number.
Specify whether the system enters the equipment serial number into the RMA when you ship parts. Values are:
Blank: Do not enter the serial number.
1: Enter the serial number into the RMA when you ship parts.
Specify the line type of the RMA detail line when the RMA is created from the sales ledger and the RMA creates a credit memo. Enter a value from UDC 40/RN.
Specify a value from UDC 40/RN that indicates the line type to be used to create the RMA detail line when you create the RMA from a warranty claim.
Specify a value from UDC 40/RN that indicates the line type to be used to create the RMA detail line when you create the RMA from a supplier recovery claim.
These processing options control which fields are required when you enter an RMA.
Specify whether the system requires a work order number when you enter an RMA. Values are:
Blank: Work order number is not required.
1: Work order number is required.
Specify whether the system requires a request number when you enter an RMA. Values are:
Blank: Request number is not required.
1: Request number is required.
Specify whether the system requires the original sales order number when you enter an RMA. Values are:
Blank: Original sales order number is not required.
1: Original sales order number is required.
Specify whether the system requires the original invoice number when you enter an RMA. Values are:
Blank: Original invoice number is not required.
1: Original invoice number is required.
Specify whether the system requires a reason code when you enter an RMA.
Blank: Reason code is not required.
1: Reason code is required when the RMA is created.
2: Reason code is required when the disposition is attached.
These processing options control whether the system sends a message of the goods that are expected to be returned and whether the Parts List Search & Select field is displayed in add mode.
Specify whether the system sends a message of the goods expected to be returned. Values are:
Blank: Do not send a message.
1: Do send a message.
Specify whether the system displays the parts list search and select in add mode. Values are:
Blank: Do not display parts list search and select in add mode.
1: Display parts list search and select in add mode.
These processing options control the versions that are called by the program.
Enter a version of the Sales Ledger Inquiry program (P42025) that is set up for credit memos. If you leave this field blank, the system uses version ZJDE0001.
Enter a version of the Quick Customer Add program (P01015) that the system uses to add a new customer record. If you leave this field blank, the system uses version ZJDE0001.
Enter a version of the Work With Work Orders program (P48201). If you leave this field blank, the system uses version ZJDE0002.
Enter a version of the Work With Maintenance Request program (P17500). If you leave this field blank, the system uses version ZJDE0001.
Enter a version of the OnLine Invoice Inquiry program (P42230). If you leave this field blank, the system uses version ZJDE0001.
Enter a version of the Shipment Confirmation program (P4205). If you leave this field blank, the system uses version ZJDE0001.
Enter a version of the Purchase Receipts Inquiry program (P43214). If you leave this field blank, the system uses version ZJDE0001.
Enter a version of the Item Availability program (P41202). If you leave this field blank, the system uses version ZJDE0001.
Enter the version of the Item Cross Reference program (P4104). If you leave this field blank, the system uses version ZJDE0001.
Enter the version of the Purchase Order Receipt Entry program (P4312). If you leave this field blank, the system uses version ZJDE0001.
Enter the version of the Open Order Inquiry program (P4310). If you leave this field blank, the system uses version ZJDE0001.
Use the processing options to set system default values and specify versions.
These processing options control default information that the system provides when you are entering RMA information.
Specify a value from UDC 00/DT that indicates the document type of the RMA records to be created.
Specify a default branch/plant. Values are:
Blank: Use the branch/plant from the user location.
1: Use the branch/plant from the ship-to address.
2: Use the branch/plant from the sold-to address.
Specify a default branch/plant to use when you create RMA records. You can use existing branch/plant values for data entry purposes.
Use these processing options to control the versions of various programs that the system uses.
Specify the version of the Return Material Authorization Revisions program (P400511) that the system uses to enter RMA information. If you leave this processing option blank, the system uses the ZJDE0001 version.
Specify the version of the Shipment Confirmation program (P4205) that the system uses to confirm a shipment for sales orders that are created from the RMA. If you leave this processing option blank, the system uses the ZJDE0001 version.
Specify the version of the PO Receipts program (P4312) that the system uses to enter a receipt. If you leave this processing option blank, the system uses the ZJDE0001 version.
Specify the version of the Sales Order Entry program (P4210) that the system uses to access the Work with Return Material Authorization program (P40051). If you leave this processing option blank, the system uses the ZJDE0001 version.
Specify the version of the Purchase Order Entry program (P4310) that the system uses to access the P4310 program from the Work with Return Material Authorization program (P40051). If you leave this processing option blank, the system uses the ZJDE0001 version.
Specify the version of the Work Order Revisions program (P17714) that the system uses to create a work order. If you leave this processing option blank, the system uses the ZJDE0001 version.
Specify the version of the Online Invoice Inquiry program (P42230) that the system uses to create an invoice for sales orders that are created through RMAs. If you leave this processing option blank, the system uses the ZJDE0001 version.
Specify the version of the Purchase Receipts Inquiry program (P43214) that the system uses to locate purchase orders that are created through RMA. If you leave this processing option blank, the system uses the ZJDE0001 version.
Specify the version of the PO Receipts program (P4312) that the system uses to enter a purchase order receipt. If you leave this processing option blank, the system uses the ZJDE0001 version.
Specify the version of the Work With Work Orders program (P48201) that the system uses to find or add a work order. If you leave this processing option blank, the system uses the ZJDE0002 version.
Specify the version of the Work With Case program (P17500) that the system uses to locate the request number that is related to an RMA. If you leave this processing option blank, the system uses ZJDE0001.
Specify the version of the Work with Equipment Master program (P1701) that the system uses to add or locate an equipment master record. If you leave this processing option blank, the system uses the ZJDE0001 version.
Specify the version of the Print Pick Slips program (R42520) that the system uses to process pick slips for sales orders that are created using RMA. If you leave this processing option blank, the system uses the XJDE0001 version.
To return outbound inventory using RMA, use the Return Outbound Inventory application (P42I01). You search for items using Sold To, Ship To, Item Number, Outbound Branch/Plant and Lot. The system then displays the list of items that are available for return. You can return both quantity-on-hand and quantity-on-hold. The system also enables you to enter quantity-to-return in both primary and secondary units.
You access the Return Outbound Inventory application from the Form menu on the Returned Material Authorization Revisions application. After you complete the fields on the Return Outbound Inventory application, the system redirects you to the Returned Material Authorizations Revisions application and populates the values you entered in the Return Outbound Inventory application.
For returning outbound inventory transactions, you can use the following processes to create RMAs:
Create a credit order
Create a credit order and purchase order
Create a purchase order
Create sales order with zero price
Create sales order with zero price and a purchase order
Create a sales order with price
Create a sales order with price and a purchase order
Access the Returned Outbound Inventory program.
Form Name | Form ID | Navigation |
---|---|---|
Returned Material Authorization Revisions | W400511E | Daily Work Order Processing (G1712) or Additional Order Processes (G4212), Returned Materials AuthorizationClick Add on the Work with Return Material Authorization form.
Select Outbound Inventory from the Form menu. |
On the Return Outbound Inventory form, complete the following fields to filter records:
Enter the item number of the item you want to return.
Enter the outbound branch/plant where the inventory was originally shipped.
Enter the lot number for the items you want to return.
Click the Find button. The system displays the following information based on your search criteria:
Item number and description
Outbound item group and description
Agreement information
Quantity on-hand and on-hold
Outbound location and outbound location type
After filtering records, complete the following fields in the grid on the Return Outbound Inventory form:
Enter the on-hand quantity you want to return. This quantity is expressed in the primary unit of measure.
Enter the on-hand quantity you want to return. This quantity is measured in the secondary unit of measure.
Enter the branch/plant from where the item will be shipped.
After completing the fields, click the OK button. The system displays the Returned Material Authorization Revisions form.
On the Returned Material Authorization Revisions form, verify or complete the following fields:
Verify the customer number for creating the RMA.
Use to cross-reference a customer number with the RMA.
Enter the branch/plant that the system uses when creating the sales order and purchase order.
Enter a value from UDC 40/RN that indicates the current status of a Returned Material Authorization line. The special handling code for the Last Disposition field determines whether a purchase order, sales order (or credit order), or both are created when you enter the last disposition on an RMA line.
The special handling codes are:
1: Purchase order only.
2: Sales order only.
5: Purchase order and sales order.
7: Purchase order and credit order.
Verify the item number for the item to be returned.
Verify the quantity that you enter through the Return Outbound Inventory application.
Enter a value from UDC 00/DT that indicates the document type of the RMA records.
When you enter an RMA to return outbound inventory, the system updates the following tables with RAM information:
Table | Information Updated |
---|---|
F42I09 |
|
F40051 |
|