NSC | Vendor Return Process for Defective Inventory Replacements

Scenario

A user encountered an issue while processing inventory returns to vendors after defective stock was discovered.

In some cases, the defect was identified only after a bale was opened, which could happen two to three months after the original items were received. After the defective items were returned to the vendor, the vendor later compensated the business with replacement items of the same type. However, the replacement stock could also take another two to three months to arrive.

The user wanted to know the best process for accounting for these inventory movements because the standard Vendor Return Authorization process did not fully fit the business requirement.