Understanding Accounting for RTVs
PeopleSoft Cost Management accommodates the various reasons for returning goods to a supplier:
Term |
Definition |
|---|---|
Return for credit |
Returning items without expecting them to be replaced. In this case, you expect a credit from the supplier. |
Return for exchange |
Returning one item for another, to either the original supplier or another supplier. The system handles this case in two parts: a return for credit followed by a request for the new item. To request the new item, you manually add a new line to an existing purchase order or create a new purchase order (PO), and you indicate that the new line or PO is a result of an RTV. |
Return for replacement |
Returning items and expecting them to be replaced. |
Return to vendor |
Returning items and expecting them to be replaced. The system treats this case as a return for replacement; it is another way to categorize a return for replacement. |
Destroy |
Destroying the items, instead of returning them, and expecting them to be replaced. The system treats this case as a return for replacement; it is another way to categorize a return for replacement. |
You can specify the receipt being returned or the receipt can be unspecified. You can return items for credit that are the same or different than the cost of the original receipt. You can record other miscellaneous charges, such as, restocking fees and freight. With PeopleSoft, you can return items to a supplier at any time:
If you refuse an item during the physical receipt of the supplier's shipment into your warehouse. Then you record the return on the receipt pages in PeopleSoft Purchasing. In this situation, the system never considers receipt of the item to be accepted and no RTV form is needed.
You can also return the item after you record the receipt, after it is put away into PeopleSoft Inventory, and even after the system matches the receipt to an invoice, pays it, and posts it. In all of these situations, the receipt should be allowed to flow through to PeopleSoft Payables and an RTV should be created to offset the voucher. PeopleSoft Payables will build an adjustment voucher when you return an item for credit or if you enter adjustment fees, such as restocking fees, when you enter the RTV.
You can return an item after closing its PO and reopen the closed PO when necessary. You can even return an item in situations where a PO or receipt identifier is no longer or never was known. You enter on the RTV page all the data that normally appears by default from the PO or receipt. You can record additional RTV fees that are charged by either you or the supplier; the Voucher Build process picks up the fees and creates an adjustment voucher.