Return-to-Vendor Quick Credits and Department Cost Adjustment Version

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Overview

Return to Vendor Quick Credits generates credit purchase orders for multiple items returned to vendors from departments (including asset locations) in a single step.

When you create a Return To Vendor Quick Credits transaction, you can specify stock items and non-stock items from purchase orders that are not direct delivery. Stock items that are not direct delivery do not require the From Organization and From Department fields to be completed. You can also specify non-file items.

On the Quick Credit edit panel, you can enter a restocking fee -- amount or percentage -- for returned items. The restocking fee propagates to the system-generated credit PO and to the invoice (when the credit memo from the vendor is available for matching).

Your organization may require return-to-vendor quick credits to undergo a process of review and shipment confirmation. This process is enabled by a flag on the MM Info tab of the Organization Edit panel: Credit PO Review Process Enabled. If this flag is selected, credit POs generated by Return-to-Vendor Quick Credit are routed through buyer review and shipment confirmation. (See Review of Return-to-Vendor Quick Credits.)

Tip: For non-stock items, use Department to  Vendor quick credits, rather than Department to Inventory Quick Credits. Otherwise, you will need to create a credit PO.

Financial Reporting Fields

Your site may be set up to use Financial Reporting Fields in various parts of the application. Similarly, you may also be using Project Codes and Fund Codes.

Financial Reporting Fields, along with Project Code and Fund Code let you generate reports on non-account code fields. For example, your site might define Physician as a financial reporting field. Users could then select the physician name associated with a quick credit, for example.

If financial reporting fields are used by your site, the tab Fin Reporting appears on the panels. (Otherwise, this tab does not appear.) You can enter field values on the tabbed panel.

Details are in Using Financial Reporting Fields in ERP.

Security

Users who create Quick Credits must have the proper authority set in the application. To assign authorities to a user, see the discussion of  User Settings.

For users who will create Return-to-Vendor Quick Credits, User is Buyer must be selected on the User Roles tab of the User setup/edit panel, and the Allow Return to Vendor Quick Credit field must be selected on the Authorities tab.  Also, the role object "Credits" must be set to Create or higher.

For users who will review Return-to-Vendor Quick Credits, the field must be selected on the User Roles tab of the User setup/edit panel.

To  create quick credits to vendors:

  1. From the main Contents, select Warehousing > Quick Credits. The Quick Credits transactions list appears (Figure 1).

Figure 1 - Quick Credits Transactions List

  1. Click New. The Quick Credits header panel appears (Figure 2).

Figure 2 - New Quick Credits Panel

  1. In the Credit Type field, select Return to Vendor Credit.
  2. Click Submit.
    The File Items, Non-file Items, and Overrides tabbed panels appear. At the bottom is the Quick Credit Lines panel with No Data for file items (Figure 3) and for non-file items (Figure 4).

Figure 3 - Return to Vendor Quick Credits Edit Panel: File Items

Figure 4 - Return to Vendor Quick Credits Edit Panel: Non-File Items

  1. Complete the information for any file item fields. (Click Help for information on the fields.)
  2. Complete the information for any non-file item fields for credit.
  3. Enter the correct charge override information on the Overrides panel, if needed.
  4. When you have entered information in the fields for each item, click Save.
  5. Click Submit.
  6. When you are finished entering items,  click Finish Now (to submit the quick credit immediately) or Finish Later (if you want to come back to it for more work later).
  7. Click Refresh to see your quick credit on the list.

Review and Shipment Confirmation of Return-to-Vendor Quick Credits

Organizations have the option to enable the review of Quick Credit, Return-to-Vendor batches by selecting a flag on the MM Info tab of the organization record (Figure 5).

Figure 5 - Credit PO Review Process Enabled

For organizations with this feature enabled, Return-to-Vendor Quick Credits will be listed and editable on the Purchase Orders list panel, but they will also be directed through a two-part review: 1) a buyer review and 2) shipment confirmation.
The credit PO is first listed on the Credit POs for Review panel, accessible under the Purchasing menu (Figure 6). When the credit PO has been reviewed and accepted by the buyer, it is moved to the Credit POs for Confirm Shipment panel (Figure 7), accessible under the Receiving menu.

Figure 6 - Buyer Review

Figure 7 - Confirm Shipment

On the Credit POs for Review panel (Figure 8), the PO can be reviewed, edited, accepted, or canceled.

Figure 8 - Credit POs for Review

On the Credit POs for Confirm Shipment panel (Figure 9), the PO can be reviewed and confirmed.

Figure 9 - Credit POs for Confirm Shipment

- To review: Click the inquiry i icon or Menu > Inquiry.
- To confirm shipment: Click the Confirm Credit PO Shipment link or Menu > Confirm Shipment.

Note: If the credit PO shipment is not yet confirmed, the credit PO may still be canceled. Locate the credit PO on the Purchase Orders list; edit the credit PO and change all quantities to zero. The credit PO will be flagged as Return Shipment Canceled.

On the Purchase Orders list, the new Credit Review field is a sortable field indicating whether the PO is flagged for the buyer review and shipment confirmation process. A second new field, Credit Review Status, displays one of the following review statuses:

*The Credit Review Status is also visible on the Credit POs for Review and Credit POs for Confirm Shipment panels.

*Updated PO reports also include Review Status information.

Buyer Review

  1. Open the Credit POs for Review panel under the Purchasing menu. (See (Figure 6).
  2. Select the Credit PO for Review. (See Figure 10.)
  3. Figure 10 - Review a Credit PO

Initially, the Review Status for the credit PO will be "Pending Review."

- Click the inquiry icon or Menu > Inquiry.
- Upon refresh, the PO's Review Status will change to "Purchasing Reviewed."

- Click the edit icon or Menu > Edit.
- When the edit panel is closed, the PO's Review Status will change to "Purchasing Reviewed," even if no changes are made.

    - Click the Accept Credit PO link or Menu > Accept Credit PO.
    - The PO will be moved to the Credit POs for Confirm Shipment panel.
    - The status of the PO on the Purchase Orders list panel will be "Pending Receiving Review."

    - Click Menu > Cancel Credit PO.
    - Edit the PO and change all quantities to zero.
    - If the PO is canceled, it will no longer be listed on the Credit POs for Review panel. Its Review Status on the Purchase Orders list panel will be "Purchasing Canceled."

Shipment Confirmation

  1. Open the panel Credit POs for Confirm Shipment under the Receiving menu. (See Figure 7.)
  2. Select the credit PO from the list. (See Figure 11.)

Figure 11 - Confirm Shipment of a Credit PO

 

Process flow and transactions generated by Vendor Quick Credits

Figure 12 - Credit PO Header from PO Inquiry

Figure 13 - Purchase Order Lines

Figure 14 - Requisition Created for a Credit PO with Restocking Fees

Figure 15 - Restocking Charge Distribution Line on an Invoice for a Credit PO

Transactions

For each file item, the system creates an inventory transaction of type Dept Return to Inventory.
The transaction shows that the item is leaving the source department and returning to the asset location.

For each file and non-file item, the system creates a new inventory transaction of type Return to Vendor.
The transaction shows that the item is leaving the asset location and returning to the vendor. (For file items, this is the second transaction generated.)

If the return to vendor has a restocking fee, restocking costs are written to general ledger accounts as follows:

Department Cost Adjustment

If a department is issued an item with an incorrect average cost, the cost can be changed without affecting the quantity issued. Department Cost Adjustment is available as a selection on the Quick Credits panel for the field Credit Type.

To use Department Cost Adjustment:

  1. Follow steps 1 and 2 for creating quick credits between departments.
  2. On the Quick Credits panel, select Department Cost Adjustment in the Credit Type field.
    The Department Cost Adjustments panel appears.
  3. Enter information for the Item Number, Cost, Department, and Reason Code.
    Note that you can enter information on the File Item or Non-File Item panels. You can also set overrides.
  4. Click Save.
  5. Click Finish Now or Finish Later.

The quick credit for department cost adjustment adjusts requisition costs for the item; except:

Note on Refresh button

Refresh refreshes lines. Use F5 to refresh the entire panel.