1 Reply Latest reply on Mar 18, 2008 12:03 PM by 628428

    Returning without Purchase Order

      Whats the best process for returning goods when there is no purchase order. During the cutover we are converting only open POs into Oracle, so there wont be POs for returning goods against POs that were closed in legacy system.
        • 1. Re: Returning without Purchase Order
          The solution is based on what is your definition of open PO?

          1. PO Received but invoiced
          2. PO Received and Invoiced but not paid
          3. PO Received, invoiced and paid.

          And the solution is required to two fold:
          Accounting and Operations


          If you need to print a document to return the goods, you can use Move Order so that you can capture some address details of the supplier to print a return document. If not you can always use a Misc issue.

          1. PO is received but not invoiced
          I am sure this PO is converted, so you can use the PO returns. If not you can use Misc issue or Move order issue to Accrual Account (Cr Inventory and Dr Accrual). In this case when supplier replaces the material do the same (Misc Receipt (cr Accrual Account and Dr Inventory). If you are standard cost, assumption is that the cost remains the same.
          2. PO Is receivd and invoiced
          Return the goods in inventory to the Liability account (Cr Inventory and Dr Liability Account). When the supplier replaces you have to do the misc receipt again by using the liability account. This lets you use the same Invoice that is raised earlier to pay against (converted in AP). I am assuming you are not going to raise another PO for the same.
          3. PO is received, invoiced and paid
          In Inventory issue material (Cr. Inventory and Dr. Cash) and receive back in the same route (no AP converted).

          Also it all depends on how your AP works.