How Return to Supplier Transactions with Shipping Documents Are Processed

When you need to return items to the supplier, you may choose to print shipping documents for transporting the returned items back to the supplier.

Returns may be needed when a customer rejects an item from their received shipment, a defect is found internally, and so forth. To print shipping documents for the return, follow the two-step return process that starts in Oracle Receiving and continues through to Oracle Shipping.

Settings That Affect Return to Supplier Transactions

To print shipping documents for your return to supplier transactions select the Print Shipping Documents for Returns to Suppliers option on the Manage Receiving Parameters page.

Note: The Print Shipping Documents for Returns to Suppliers option is a one-time setup step for your organization. You don't set this up per transaction.

Shipping documents print for return to supplier transactions when all of these conditions are true:

• The material is delivered (through put away receipts or direct receipt).

• The customer is returning to the supplier (and not returning to receiving).

• The goods are delivered to an inventory location (subinventory and locator) and not to an expense location.

If any of these conditions aren't satisfied, the print shipping documents aren't printed.

How Return to Supplier Transactions Are Processed

Return to supplier transactions are processed in two steps:

1. Create the return to supplier transaction in Receiving.

   The receiving agent has an offline interaction with the supplier to obtain the return material authorization number for the return. Then, the receiving agent creates the return to supplier transaction by providing details such as the returned quantity and return material authorization (RMA) number. Finally, the receiving agent submits the transaction for processing and the transaction moves to Shipping.

2. Create and confirm the return to supplier shipments in Shipping.

   Shipping treats the items on the return to supplier transaction as a noninventory shipment and stages the items without creating a shipment. Noninventory shipments don't generate inventory transactions or affect on-hand balances. Therefore, the application skips actions such as backorder, cycle count, pick release, and record serials, since these actions aren't applicable to noninventory shipments. The shipping manager searches for the return transactions, assigns the return to supplier lines to shipments, and performs ship confirm. Upon ship confirm, Shipping generates the shipping documents for the customer, and creates and sends the automatic shipment notices (ASNs) automatically to the supplier.

Corrections to Return to Supplier Transactions With Shipping Documents

You can make corrections to return to supplier transactions. The corrections are reflected on shipping documents up until the returned products are shipped within the Shipping application. If you make corrections after the products are shipped, the changes are still accepted in Receiving. Receiving maintains automated interfaces with Oracle Payables, Oracle Cost Management, and Oracle Purchasing to share the corrected quantity information The table explains when changes are allowed within the Shipping application based on the type of correction to the return to supplier transaction and the associated shipment status.

Action	Status of Shipment in Shipping	Shipping Response
The return to supplier transaction sends an update with an increase in quantity.	Shipped	An increase in the quantity is accepted at the end of shipping and a new delivery line is created.
The return to supplier transaction sends an update with an increase in quantity.	Not shipped	Updates are accepted in Shipping.
The return to supplier transaction sends an update with an increase in quantity.	Partially shipped	Updates are accepted in Shipping for the unshipped lines. Updates for the lines already shipped aren't accepted.
The return to supplier transaction sends an update with a decrease in quantity.	Shipped	No updates are accepted in Shipping.
The return to supplier transaction sends an update with a decrease in quantity.	Not shipped	Updates are accepted in Shipping.
The return to supplier transaction sends an update with a decrease in quantity.	Partially shipped	Updates are accepted in Shipping for the unshipped lines. Updates for the lines already shipped aren't accepted.
The return to supplier transaction sends an update that reduces the quantity to zero.	Shipped	No updates are accepted in Shipping.
The return to supplier transaction sends an update that reduces the quantity to zero.	Not shipped	Shipping accepts the change, but setting the quantity to zero cancels the shipment in Shipping.
The return to supplier transaction sends an update that reduces the quantity to zero.	Partially shipped	Updates are accepted in Shipping for the unshipped lines. Other lines aren't accepted because that part of shipment is canceled.
The return to supplier transaction makes further updates after setting the quantity to zero.	Canceled	You can't make further updates to a transaction that's already canceled. You must create a new return to supplier transaction.

Example

When your organization's customer initiates a return, they return the item to your organization. Your organization must then send the items back to the outsourced manufacturer or supplier. Therefore, instead of your customers returning the items directly to the suppliers, your customer's items are routed through your organization to your organization's suppliers. In this instance, you must create shipping documents for transporting the items back to the suppliers.