Module 1: SALES ORDER MANAGEMENT
Module 2: SALES PRICES AND DISCOUNTS
Module 3: CUSTOMER SERVICE FEATURES
Module 4: PURCHASE ORDER MANAGEMENT
Module 5: REQUISITION MANAGEMENT
Module 6: ITEM CHARGES
Module 7: ORDER PROMISING
- Lesson 1: Sales Order Promising Key Concepts
- Lesson 2: Sales Order Promising Definitions and Calculations
- Lesson 3: Date Calculation Setup for Sales Orders
- Lesson 4: Promising Sales Order Delivery
- Lesson 5: Purchase Order Promising Definitions and Calculations
- Lesson 6: Date Calculation Setup for Purchase Orders
- Lesson 7: Estimating Purchase Order Receipts
- Lesson 8: Estimate a Transfer Order Receipt & Calendars
Module 8: RETURNS MANAGEMENT
Module 9: ASSEMBLY MANAGEMENT
Module 10: ANALYSIS AND REPORTING
Lesson 3: Manage Returns to Vendors
Manage Returns to Vendors
Manage Returns to Vendors : Receiving compensation from a vendor for damaged or otherwise unsatisfactory items is important both for cost recovery and for the ongoing relationship between the company and the vendor. Streamlining the return-to-vendor process greatly reduces the costs of returns.
Typically, the purchasing agent responsible for vendor interaction also contacts vendors when the company is dissatisfied with purchased items.
Managing returns to vendors involves a series of tasks. The number and scope of the tasks depend on who starts the return: the company (when, for example, dissatisfied with the quality of purchased items or if there is a wrong delivery), or one of the company’s customers. Vendor-oriented tasks include the following:
- Register compensation agreement with the vendor
- Ship return items to the vendor, if applicable
- Debit the vendor, either by receiving a credit for physically returned items, or with a purchase allowance if the company is not required to physically return the item
- Create a replacement purchase order(s) if a replacement is specified by the compensation agreement
Additionally, the following internal tasks might have to be completed:
- Receive replaced/repaired items
- Make sure that the inventory value assigned to the returned items is accurate
- Combine several return shipments to the same vendor into one credit memo document
The topics and demonstrations in this lesson address these external and internal tasks.
Register a Compensation Agreement with a Vendor
There are several ways a company can expect compensation when it is dissatisfied, or when one of its customers is dissatisfied, with a vendor’s products. The terms of the compensation agreement frequently depend on the reason for the dissatisfaction and on the company-vendor relationship. For example, the parties might agree that if the vendor delivered the wrong items, the company must return the items to the vendor, receive a credit for the incorrect order, and receive a replacement shipment. If items arrive at the company damaged but can still be used, the company can request a price deduction against the original purchase order price. Or, if a customer returns a damaged item that is covered by a vendor warranty, the company can ask the vendor to repair the item.
In Microsoft Dynamics NAV, you use the purchase return order to register a compensation agreement with a vendor. From this document, you can access other purchase-related documents and enter and maintain the return-related information, the method of compensation, and so on.