Account Credit-Only Returns to Supplier with Project and Budget Controls

In many industries, returning goods to a supplier is intended solely for obtaining a credit rather than a replacement. To ensure these transactions are properly managed, it's important that the original purchase order remains closed so that no additional receipts can occur after the goods have been returned.

Effective financial management requires strict budgetary control and precise tracking of expenses, especially for organizations with a focus on projects or with stringent budget oversight. Accurately validating transactions against allocated funds helps prevent overspending and ensures that resources can be reallocated to other priorities.

Earlier, only organizations without budget control or project-driven supply chain processes could process supplier returns for credit seamlessly. With the 25D update, this functionality has been expanded to include those operating with budgetary controls and project tracking. Now, all organizations can properly process, cost, and account for supplier credit returns, ensuring that funds are appropriately credited back and available for future use. This enhancement strengthens effective oversight of financial processes and boosts operational efficiency for businesses with advanced management requirements.

Organizations can now process supplier returns for credit while maintaining accurate budget and project tracking. As a result, businesses benefit from improved financial accuracy, stronger budgetary control, and enhanced compliance, making it easier to manage funds and prevent overspending, even in complex or project-driven environments.

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 end.
  • No fresh obligation on receipt return for credit event, only expense will be reversed to recover budget balances.
  • No change in the logic to process retro price updates, because it's based on the uninvoiced net receipt quantity. Based on the timing of invoices you might find some balances in accrual line type, which must be reconciled using the existing accrual clearing capability.
  • No accrual reversal booked in the case of return for credit. This event won't be included in Accrual Matching or Reconciliation.
  • PO Accrual account will be the default account for the Trade Clearing distribution, which will also be default account in the auto unmatched debit memo created from receiving in Accounts Payables on return for credit event from Receiving for Item Expense line.
  • Return for credit indicator is also made available as additional accounting source in the Receipt Accounting subledger under Receiving Event Class to support user configuring an account of his choice.
  • Return for credit indicator is also a search attribute on the Receipt Accounting Distributions page.
  • For receipt returns enabled for projects, budgetary control and encumbrance will be recorded directly in projects.
  • Auto debit memo for receipt return will be at PO price as unmatched invoice. Variances in the AP invoice won’t be reversed.
  • Costing will always perform adjustment to inventory value on return using the original invoice value with IPV.
  • Review the what's new of Receiving, Projects, 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.

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.