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Purchase Return Order / Scrap Item

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Posted on by Andy_T

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Hi All

Is it possible to use something similar to disposition codes with purchase return orders the way you can with sales orders?

How do you handle the scenario when dealing with vendor returns, i.e. the vendor does not want the goods back but will still issue us with a credit note?

I know we could use an inventory journal to adjust the stock back in, or just simply process a vendor credit note...but I was hoping we could keep the process similar/the same as with sales orders to keep things nice and simple for the user?

Thanks in advance

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HenryXie on at

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Hi Miller,

if I understand right, you can try to reduce receipt quantity on purchase order invoice.

but you have to think about the create accounting issue with this purchase variance.

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André Arnaud de Cal... 300,911 Super User 2025 Season 2 on at

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Hi Henry,

There are two options here.

1) Use an inventory journal to deduct the goods and process the credit note using imvoice journals.

2) Create a negative purchase order and just skip the physical sending of the goods. Then you are able to match an incoming creditnote with the order.

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Andy_T 330 on at

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Hi both - thanks for you replies

The original scenario I was wanting to use was:

1. We raise a purchase return for an item we wish to send back to a vendor. We are issued with an RMA.

2. The vendor then calls and says they do not want the item returned (i.e. it is a low value item and returning the goods outweighs the actual cost). They will raise a credit note and send it to us.

3. We will therefore keep the inventory (effectively FOC) so no stock adjustment is necessary

4. Because we have already raised the return, we still wish to follow the standard process of receipt / invoice...but with some sort of disposition code (as you can with sales returns) that would not reduce the on-hand stock quantity.

Is that possible without having to process the return order and then manually adjust the on hand inventory?

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Ludwig Reinhard Microsoft Employee on at

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Hi Miller,

If you have the stuff from your vendor still in your warehouse then you can basically scrap it by posting an inventory adjustment journal.

That's the easiest and fastest way in my opinion.

Best regards,

Ludwig

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Juanse 660 on at

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If I understand correctly your scenario you want to process a credit note, but you don't want to reduce your inventory for the returned items. You want to keep to those items in your inventory to probably sell later at a discount or something.

I would use a service item to process the Credit, that way you recognize the credit (Expense) and then use the credit to apply to a future payment to the vendor.

Regards,

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André Arnaud de Cal... 300,911 Super User 2025 Season 2 on at

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Hi Andy,

If you keep the items you wanted to return in your inventory, then you cannot use the return order with this normal item. Then like mentioned above, use a service item. Or you can use a purchasing category without item on the PO line to track the receipt for a credit note.

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