Item Rejection Versus Item Returns

In PeopleSoft Purchasing, rejecting an item is different than returning an item using a RTV transaction.

When you reject an item during receiving, the item is never recognized as a part of the accepted quantity in the system. For example, suppose that one of the items delivered to the receiving dock has been crushed beyond recognition, you reject the item, and have the carrier take it back. This item quantity is entered into the system as a rejected quantity and is not included in the accepted quantity.

When you return an item using an RTV transaction, the item has already been entered into the system as a part of the accepted quantity. As an example, suppose that you received, accepted, and moved an item to an inspection location. If this item fails inspection, return it to the supplier by creating an RTV transaction.

There are two reject actions in PeopleSoft Purchasing: credit and replace. When you enter a rejected quantity, the purchase order schedule remains open in anticipation of receiving the replacement items for the rejected quantity. Both the credit and replace reject actions result in the same action to the receipt (receipt quantity minus the reject quantity equals the accepted quantity). No further processing is associated with the action. As a result, neither RTV transactions nor debit memos are generated for receipts where the items are rejected on the receipt.

There are three return actions in PeopleSoft Purchasing used by RTV transactions: credit, exchange, and replace. You can create a debit memo for the returned item during the RTV process. You can define this option while defining a supplier's procurement options. At the supplier location and at the PeopleSoft Payables business unit level on the Payables Definition - Voucher Build page. To view the default settings, see the Return To Vendor Defaults page. Based on these settings, the payment process either creates a separate debit memo or adds the debit to the supplier balance and lists the debit on the remittance advice.

See Return To Vendor Defaults Page.

The RTV Debit Memo check box does not impact the creation of the adjustment voucher in PeopleSoft Payables. You create the RTV transaction based upon the setting for the RTV Adjustment Option field on the Payable Definition - Voucher Build page, where you can specify the voucher build criteria for the business unit.

Values are:

• No Adj: The Voucher Build process does not select or create an adjustment voucher from the RTV transaction.

• Create: The Voucher Build process selects and creates an adjustment voucher from the RTV transaction.

• Stage: The Voucher Build process selects and stages an adjustment voucher from the RTV transaction.

The adjustment voucher is staged or held in the Quick Invoice Entry component until you update the adjustment vouchers build status to To Build on the Quick Invoice page.

Note:

If you reject items and also return the same items originating from the same source purchase order, the net receipt quantity is reduced twice. The reject quantity that you enter at receiving is deducted from receipt accept quantity and the net receipt quantity. The return quantity is updated for RTV transactions during inspection, or the RTV process updates the receipt return quantity and may be deducted from the net received quantity on the receipt depending on the return action and the RTV Adjust Source check box selection. Because the reject has already been accounted for in its own transaction, do not include it in the RTV transaction.