Purpose & Net Value of Return PO - For Damaged or Recycled Material or both

[Former Member]

Dear all

As far as I know about the Return PO, they are summarized as follows:

Examples for returns for purchase order:

. You procure filters from a vendor. You return the dirty filters to the vendor for recycling.

. You have agreed with your cable vendors that you can return cable remnants to them. You then receive a credit memo for the value of the copper contained in the cables.

This is always happen after we have posted Invoice Verification (MIRO) in the system and make the Outgoing Payment (F-53).

Question 01:

Does return PO cover both scenario such as

(a)Return the damaged material to vendor which we discover its defect after invoice verification or post outgoing payment has been made?

(b) Return the recycle material to vendor after invoice verification or post outgoing payment has been made?

Question 02:

We are using Info Record for the material.

(a) In the case of Return the damaged material to vendor, the return PO will have the net value suggested from info record

and it makes sense since we want our AP (account payable) to be reduced.

(b) In the case of Return the recycle material to vendor, the return PO will have the net value suggested from info record but

iit makes no sense as vendor will not agree to have the recycle material same price as the first purchase price.

Please advise.

Thanks.

Edited by: Daimos on Oct 12, 2009 3:28 PM

[Former Member · Accepted solution]

Hi,

I correct myself that return purchase order can be used for the for damaged material discovered after payment done tot the vendor. But I would suggest that preferebly we shuold go for free purchase order .

We can discuss the same with vendor and create new purchase order, with reference to the purchase order for which damaged material has been discovered after the payment to the vendor. With this you can track the replacement made against , the damaged material, by clciking the free delivery indicator in the item overview.

With this you can get clear view of maintaining two different procedures for recycle material and damaged material

Regards,

Tushar Patankar