ERS and PO Returns for Legal Documents
Use Purchase Order Returns (5.13.7) to process supplier returns for legal documents, including items for which logistics charges apply.
When purchase order line items with associated logistics charges are returned using Purchase Order Returns, the system does not reverse the accrued value of the logistics charges. Some logistics charges, like freight or insurance, could be payable to a third-party supplier regardless of whether the items are returned.
When you process a return for purchase order line items with associated logistics charges in Purchase Order Returns, the system creates the following GL transactions:
• Debit the inbound expense account for the accrual value.
• Credit inventory for the same amount
When the purchase order return is processed, the system generates a separate legal document for the returned materials. The legal document for the material return is linked to the original legal document.
Run the ERS Processor by legal document to generate a supplier credit note for the returned materials. ERS does not create a credit note for the logistics charges associated with the returned materials.