You can automatically generate debit memos for Return To Supplier transactions if an invoice has been created. To enable this functionality, enable the supplier site as a Pay Site (or indicate an Alternate Pay Site) and select Create Debit Memo from RTS Transaction in the Supplier Sites window. See: Entering Supplier Information. When you create the return, make sure the Create Debit Memo Option is selected in the Returns window. Once you enable this functionality, a debit memo is created for each return line you enter in the Returns window.

• The debit memo number contains the original receipt number. Self-Biiling Invoice numbering affects debit memos. See: Self-Billing Invoices.

• The debit memo is dated with the return transaction date. If this date does not fall within an open period in Oracle Payables, the date defaults to the first open date available in Payables.

• The payment schedule on the debit memo is based on the purchase order payment terms (in the Terms and Conditions window) and the invoice terms defined in Payables.

• The debit memo is calculated by multiplying the returned quantity by the purchase order item unit price. If the purchase order is in a foreign currency, and you perform invoice matching to receipts, Purchasing uses the currency conversion rate at the time of receipt to calculate the unit price.

• The debit memo does not include tax and freight charges.

• If the unit of measure (UOM) on the return in the Returns window differs from the purchase order UOM, Purchasing restates the return quantity on the debit memo in terms of the purchase order UOM.

• If an Advance Shipment Notice (ASN) or an ASN with billing information (ASBN) exists for the receipt, the unit price from the ASN or ASBN is used.

• Purchasing does not automatically include corrections to returns in debit memos; in this case, you need to adjust the debit memo manually. See: Entering Debit/Credit Memos. Purchasing does not create debit memos for returns against unordered receipts.

• If an invoice has not yet been created for the receiving transaction or if Payment on Receipt already accounted for the return using the Aging Period functionality, a debit memo will not be created. Whenever a debit memo cannot be created, you will receive a notification in the Notifications Summary window.

• Similarly, the Aging Period functionality in Payment on Receipt does not include returns for which a debit memo was already created, so that duplicate debits are not made. See: Payment on Receipt.

• When Auto Create Debit Memo from RTS Transaction is not enabled in the Supplier Site form (Supplier Sites window > Suppliers: Entry), do the following:

  From the Sites region, choose Open or New, and a warning message is displayed to the user. A debit memo needs to be created manually against the return to consigned transaction.

  However if the user tries to update the status of invoice only consigned purchase orders to Finally Closed or Closed for Invoicing, then the system compares the current billed quantity with net consumed quantity using the Inventory API check_net_consumed_qty which will compare the net consumed quantity (quantity consumed - quantity returned to consigned inventory for that billing period) with the current billed quantity. As long as the net consumed quantity is greater than or equal to quantity billed on the consigned PO, the API returns True and the consigned purchase order status can be updated. If the net consumed quantity is less than quantity billed on the consigned PO, the API returns a value of False, and an error message is displayed.

You can match the debit memo to the purchase order or receipt. See: Matching Credit/Debit Memos in the Invoices chapter/section of the Oracle Payables User's Guide.