Vendor Return Process

[Former Member]

Hello All,

As per experience is that a good practice to create PR for return PO process. There are 2 business scenarios..

1. You need a replacement part from vendor

In that case I guess there will be 2 PRs one for return PO and one for replacement part

2. You just want to return part..

In that case there will be only one PR..

Is that a good practice to do that or I should recommend business directly create return PO?

Thanks

[kunal_ingale · Accepted solution]

hi

Procedure to return stock to vendor

hi no need to create pr for returns as u r going to return it

If LIV and Payment to Vendor is done then

1. ME21N - Create a Returns PO (Activate "Returns" indicator for PO line item)

2. MIGO - Goods Receipt > Purchase Order (Returns PO) (Here system will hit Mvmt type "161" and you can also select Un-restricted/blocked stock from where you want to return the stock)

3. J1IS u2013 Excise Invoice Other Movements

Here click on u201Ccreateu201D button to create an outgoing excise invoice and reverse the CENVAT Amount.

Here put all details as below and Press u201CEnteru201D.

Ref.doc.type - MATD

Doc Number - Material document No of 161 mvmt

Doc Year

Series Group

Excise Group

Vendor

Here check BED, ECS and SECess values to be reversed and click on u201CSaveu201D button to post the excise invoice.

4. J1IV - Post and Print Outgoing Excise Invoice.

5. MIRO - Credit memo w.r.t. Returns PO.

If LIV and Payment to Vendor is not done then

1. MIGO > Return delivery > Material Document (Here refer GR doc, system will determine mvmt type "122" automatically)

2. J1IS u2013 Excise Invoice Other Movements

Here click on u201Ccreateu201D button to create an outgoing excise invoice and reverse the CENVAT Amount.

Here put all details as below and Press u201CEnteru201D.

Ref.doc.type - MATD

Doc Number - Material document No of 161 mvmt

Doc Year

Series Group

Excise Group

Vendor

Here check BED, ECS and SECess values to be reversed and click on u201CSaveu201D button to post the excise invoice.

3. J1IV - Post and Print Outgoing Excise Invoice.

4. MIRO - Credit memo w.r.t. Orignal PO.

if it is in exchange then u can just follow the above process and then agin do the normal procurement process

(if ur outof india then u can ommit the steps of J1IS and J1IV)

accounting will be as follows

At the time of Vendor Return (MIGO);

Stock A/c - Cr

GR/IR Clearing A/c - Dr

Excise Invoice for Vendor Return (J1IS & J1IV);

CENVAT Receivable A/c - Cr

CENVAT Clearing A/c - Dr

At the time of Credit Memo (MIRO);

Vendor A/c - Dr

GR/IR Clearing A/c - Cr

CENVAT Clearing A/c - Cr

hope it clears

regards

kunal

Edited by: kunal ingale on Nov 18, 2008 7:12 PM

[Former Member]

Without creating GR Document, system will not reduce stock of material on the basis of return PO.

Return PO Cycle is as following;

1. ME21N - Create a Returns PO (Activate "Returns" indicator for PO line item)

2. MIGO - Goods Receipt > Purchase Order (Returns PO) (Here system will hit Mvmt type "161" and you can also select Un-restricted/blocked stock from where you want to return the stock)

3. J1IS u2013 Excise Invoice Other Movements

Here click on u201Ccreateu201D button to create an outgoing excise invoice and reverse the CENVAT Amount.

Here put all details as below and Press u201CEnteru201D.

Ref.doc.type - MATD, Doc Number - Material document No of 161 mvmt, Doc Year, Series Group, Excise Group, Vendor

Here check BED, ECS and SECess values to be reversed and click on u201CSaveu201D button to post the excise invoice.

4. J1IV - Post and Print Outgoing Excise Invoice.

5. MIRO - Credit memo w.r.t. Returns PO.

[Former Member]

steps 3 and 4 for Indian scenario only

[Former Member]

Hi

I do not think there is any indicator in PR to say that this is a returns PR.

If you generate a PR then system would treat it as an requirement.

I would not suggest this approach at all.

If you are going to return the material by creating retyrn delivery in MIGO (Movement type 122) referrencing the GR material document then in that case you can again receive the material against the same PO with option "Subsequent delivery" if the invoice is already posted.

You can also return the material with RETURNS PO. In this case you should have a PR to create PO & receive the material again.

Regards

Prasad

[Former Member]

Parsad,

I donu2019t want to return the material with return delivery. Return delivery we mostly use when we find the part is damaged or other issue during the time of receiving. But if we find the part damage or other issue with part after 2-3 months of receiving from vendor and doesn't know original PO against that part in that case we are doing return PO process.

In the Return PO case you are suggesting to use PR and I have two cases in that

a.Just return the part no replacement

b.Return the part and ask for free replacement

Thanks

[Former Member]

Hi

In case of return PO process no need to create the PR for return PO.

You need to create PR only if you are going to receive the part.

If it is going to be free replacement then select the free goods indicator in new PO.

Regards

Prasad

[Former Member]

Hi Abhi,

Ask the Business to create a Return PO directly and do the Goods receipt, before doing the GR check the stock level in MMBE for that plant, immediately after doing goods receipt again check the stock.

Regards,

Vijay