Processing Returns, Rejects, and Corrections
Rejects and Returns
If no usage has occurred against the PO, consigned inventory being rejected is returned to the supplier using:
• Purchase Order Returns (5.13.7)
• Purchase Order Receipts (5.13.1)
• PO Shipper Receipt (5.13.20) with a negative line item quantity
No transfer of ownership occurs during inventory returns to the supplier because the supplier already owns the material.
Corrections and Returns
When Use Consigned First is Yes in Supplier Consignment Control, consigned inventory being returned as a correction is returned to consignment by processing a reversal for a negative quantity using standard programs. The system returns inventory to its consigned site and location to the extent that it has not been reported to the supplier as used.
When Use Consigned First is No (the default), consigned inventory is returned as non-consigned.
If usage against the PO has been reported to the supplier, consigned inventory being returned as a correction is returned to the designated site and location as non-consigned.
The system excludes reported usage records for reversals, thus eliminating the risk of double payment for consigned inventory when original usage was reported and paid prior to a reversal transaction. Usage records created due to the aging of consigned inventory are also excluded from reversal transactions.
In addition to a standard issue transaction for the negative quantity, negative quantities processed as consigned reversals create RCT-PO and CN-ISS transactions. The quantity is transferred back to consigned inventory.
When reversals of consigned inventory occur, the system creates a GL transaction that debits the Consigned Inventory account and credits the Consigned Inventory Offset account.
The system automatically adjusts the existing unpaid pending supplier invoice that was created when the material was first consumed.