The existing Returns functionality has been extended/enhanced to enable you to return goods/materials to suppliers and ship them back to the supplier location. To integrate the return to vendor functionality with Shipping Execution, Inventory and Export Compliance, the following modules are used:
Using the Receiving module (Returns window), you can perform the return of goods/materials.
The Shipping Execution module enables you to ship the returned goods to the supplier.
Inventory enables you to track the returned goods.
The Accounts Payables module enables you to create a debit memo to send to the vendor.
The Return to Vendor process can be executed in one of the following three ways:
When you perform returns in the same organization as you received the goods in.
When you return goods from an organization that is different from the organization you received the goods in.
When you return goods without a reference document.
These return methods are described in detail in the following sections.
Prerequisites
The profile option RCV: Track Shipments for Return to Vendors must be set to Yes to enable the enhanced return to vendor feature. This option can be set at the Site or Responsibility levels in the System Profiles window. Please refer to the appendix Oracle Purchasing Profile Options and Profile Option Categories for more information on this profile.
To return goods/material using the same organization that you created the original receipt in, follow the steps below:
Receiving
Using the Receiving module, search for your original receipt using the Find Returns window. Use the Change Organization window to specify the inventory organization. The tinventory organization specified should be the same as the organization you created the original receipt in.
Enter your search criteria such as the Receipt Number or Supplier or Purchase Order, then click Find. The search results display in the Receiving Returns window.
Create a Return Order: In the Receiving Returns window, enter the following required criteria for the return lines such as quantity to be returned, supplier details, etc.
After you complete the entries, click Save. The system generates a new unique return order number for this return transaction and displays the return order number. This return order number is trackable in Inventory and Shipping Execution. Make a note of the return order number so that you can perform a return shipment.
Note: Once the return order is created, you cannot update/modify it.
When return to vendor happens, and if Oracle Warehouse Management (WMS) is installed in your enterprise, you can track return orders through license plate number (LPN). For return orders, you can view LPN details available in the From LPN and To LPN columns in the Return From tab. For information about LPN, refer to the Oracle Warehouse Management User's Guide.
Shipping Execution
Using the appropriate Shipping Execution responsibility, navigate to the Shipping Transaction window. The Shipping Transactions window enables you to ship confirm the returned goods using a Type Return.
Alternatively, from the Tools menu, select Transact Shipment (after the order is saved) to open the return order lines in Shipping Transactions window and ship the returned goods/materials.
Navigate to the Query Manager window (Shipping Transactions window) to query the return details and perform the return shipment.
Note: If you transacted the shipment from the Receiving Returns window by selecting Tools > Transact Shipment then the Shipping Transactions window already appears.
In the Source System field, select Returns to search by related returns criteria such as the return order number. Click Find to display the search results.
From the Actions list, select Auto-create Deliveries. The default grouping rules for deliveries are defined in Oracle Shipping Execution. Click Go to create the deliveries. The delivery number appears in the Delivery field.
Perform a search from the Shipping Transactions window to display the delivery.
Print Documents, Export Compliance, and Shipping: You can print documents when creating deliveries, manually during any time during shipping, or even during the ship confirm process. For export compliance requirements, Oracle Shipping Execution already provides a standard shipping integration with Oracle's Global Trade Management (GTM) module. After you have selected and printed the document set, then you can ship-confirm the delivery. For more information on setting up GTM for Return to Vendor transactions, please refer to the Oracle Order Management Implementation Manual, International Trade Management Partner Integration section.
To manually print the document set associated with the delivery, click the Print Doc Set button.
Finally, from the Actions field, select Ship Confirm then click Go to ship confirm the delivery.
Confirm the ship confirm criteria in the Confirm Delivery window. After completing your entries, click OK. A message confirms the success of your delivery.
After ship confirming, run the Interface Trip Stop to interface with Inventory.
Note: When interfacing, the system uses the transaction type called Return to Vendor so that an issue transaction is performed.
You can cancel an open quantity for a shipment from the Transaction Statuses window. Cancelling lines is only applicable to the open quantity on the delivery details.
Navigate to the Transaction Statuses window, using the appropriate Oracle Inventory responsibility.
Perform a query by return order number to find the return shipment to be cancelled.
From the Tools menu, select Cancel return shipment lines to cancel the shipment/ lines.
The status of these delivery details will be marked as Cancelled.
Using e-Business Suite's multiple organization access capabilities, you can query for a receipt that belongs to an organization different from your current organization, provided your given responsibility has the relevant organization access.
You can also return goods/materials from an organization that is different from the one the goods/material were received in. Such a situation, where the goods are returned from a different organization from the original one (where the goods were received), occurs frequently in most businesses.
When you perform a return in an organization that is different from the organization the goods were received in, some points to be noted are:
When you ship confirm the return delivery, the system internally performs an inter-direct organization transfer.
When returning from a different organization, the return organization and the receipt organization should belong to the same operating unit.
Example of Performing Returns From an Organization Different from the Receipt Organization
Suppose you have two inventory organizations: M1 and M2. A purchase order is raised with a supplier and the goods are received in M1. Now, the customer who bought these goods wants to return the goods to organization M2.
To perform the return, navigate to the Receiving Returns window, using the appropriate Purchasing responsibility:
Navigate to the Change Organizations window to change to the M2 organization.
2. The returned on-hand material exists in M2. The goods can come in from any receipt generated for which return items are available in the on-hand quantity. Alternatively, the customer can create a Returns Material Authorization (RMA) using the Oracle Order Management module, so that the returned goods are in inventory and the on-hand quantity is greater than zero. For more information on RMAs, see the Oracle Order Management User's Guide. These goods have to be returned to the supplier from M2.
In the Find Returns window, select M1 as the Receipt Org and enter the original receipt number (that was issued in M1).
The receipt details display from M1, but you can perform returns from M2 (where the actual on-hand quantity lies).
Sometimes you may need to return a specific component to a supplier but you do not have a backing document for the receipt of the item [such as a tracking purchase order (PO) number]. This situation may arise, for example, if:
the PO was cancelled.
the Item received was a final assembly, however only part of the assembly was returned.
In these situations, you can create a new return shipment without a reference document.
Navigate to the Find Returns window (log into the organization where the original receipt was made).
Perform a search to confirm that there is no existing receipt.
If no receipts exist, click New on the Find Returns window to display the Receiving Returns window.
Define your return criteria in the Receiving Returns window such as Quantity, Return To, Supplier, Supplier Site, Ship To and Item.
For additional information on creating the return order, see Performing Returns in the Receipt Organization.
After you have created the return order, refer to the steps on selecting export compliance and shipping documents, and shipping the return order.
The supplier site needs to be active in order for the return to vendor transactions to work. For more information on activating supplier sites, see the Oracle Payables User's Guide.
Return to receiving is not possible from the Receiving Returns window when value of the profile option RCV: Track Shipments for Return to Vendors is set to Yes.
A return order will be created only for the return lines with an Inventory destination. Returns saved with Receiving, Expense, and Shop floor destinations will follow the regular return to vendor flow.
Debit memos can be created using Accounts Payables or Receiving after the return to vendor transaction has been completed.
To issue stock/goods out of inventory using return to vendor without a reference document feature, a new transaction type - Return to Vendor without Receipt has been introduced in inventory.