Return to Supplier for Credit Only
You can now perform receipt accounting for return of goods to your supplier for which you don't expect them to send a replacement. Instead, you expect the supplier to send you a credit for the amount of the returned goods. Therefore, you don't want the original purchase order reopened or supplier accrual to be reversed to ensure that goods can't be received against that purchase order in the future.Prior to this update, you needed to take additional manual steps after completing the return of goods in order to keep the purchase order closed for future receipts and reconcile the accrual reversals with the credit.
You can now identify in Oracle Receiving that a return to vendor is meant to be for credit only because you don't expect replacement for the goods being returned and generate relevant accounting distributions.
On the Receiving Returns page, you can select the Return for Credit option. The Return for Credit option will be displayed on the return line drawer provided the feature Return to Supplier for Credit Only is enabled.
When the Return for Credit option is selected, for the Return to Supplier transaction type, Receipt Accounting will generate the distributions to hit the Trade Clearing accounting line type instead of the Accrual accounting line type. A quick illustration of the accounting for different flavors of return is given below:
| Transaction Type | Debit/Credit | Regular Return to Vendor | Return for Credit | Sub ledger | Remarks |
|---|---|---|---|---|---|
| Return to Receiving | Debit | Receiving Inspection | Receiving Inspection | Cost Accounting | No Change |
| Credit | Inventory | Inventory | Cost Accounting | No Change | |
| Return to Supplier | Debit | Supplier Accrual |
Trade Clearing |
Receipt Accounting | Change |
| Credit | Receiving Inspection | Receiving Inspection | Receipt Accounting | No Change |
This feature provides you the ability to account differently for return of goods to your supplier for credit as compared to the returns with replacements.
Steps to Enable
You don't need to do anything to enable this feature.
Tips And Considerations
- No change in receipt accounting for purchase order receipts marked to be accrued at period.
- No change in logic to process retro price updates, because they're based on the uninvoiced net receipt quantity. Based on the timing of invoices, you might find some balances in the Accrual line type, which can be reconciled using the existing accrual clearing capability.
- In the case of return for credit, no accrual reversals are booked. This event won't be included in Accrual Matching or Reconciliation.
- PO Accrual account will be the default account for the Trade Clearing distribution. It will also be the default account for automatically created unmatched debit memo in Accounts Payables in the case of return for credit event from Receiving for the Item Expense line type.
- Return for Credit indicator is available as an additional accounting source in the Receipt Accounting subledger under Receiving Event Class enabling you to configure an account of your choice.
- Return for Credit indicator is also a search attribute on the Receipt Accounting Distributions page.
- Review the What's New of Receiving and Accounts Payables for additional information about this Return for Credit feature.
Key Resources
- Oracle Fusion Cloud SCM: Using Supply Chain Cost Management guide, available on the Oracle Help Center.
- Oracle Fusion Cloud SCM: Implementing Manufacturing and Supply Chain Materials Management guide, available on the Oracle Help Center.
- Oracle Fusion Cloud SCM: 25A What's New of the feature Return to Supplier for Credit Only, under Receiving.
Access Requirements
Users who are assigned a configured job role that contains these privileges can access this feature:
- Submit Receipt Accounting (CMR_SUBMIT_RECEIPT_ACCOUNTING)
- Create Receipt Accounting Distributions (CMR_CREATE_RECEIPT_ACCOUNTING_DISTRIBUTIONS)
- Create Uninvoiced Receipt Accruals (CMR_CREATE_UNINVOICED_RECEIPT_ACCRUALS)
- Review Receipt Accounting Distributions (CMR_REVIEW_RECEIPT_ACCOUNTING_DISTRIBUTIONS)
- Review Receipt Accounting Distributions by Web Service (CMR_REVIEW_RECEIPT_ACCOUNTING_DISTRIBUTIONS_WEB_SERVICE)
These privileges were available prior to this update.