Returning a Bill on Receipt inventory product to the vendor

When you create a PO RM to return a BOR product, a return merchandise sales order (OE RM) is automatically created to credit the customer. The PO RM and OE RM are tied at both the header and line level. The OE RM must be invoiced as part of the vendor return workflow. If Bill on Receipt or Both is selected in the Auto Invoice Shipped Orders field in Product Warehouse Description Setup, the OE RM is automatically invoiced. If the OE RM is not automatically invoiced, you must process it using the Sales Entry Invoice Processing Report in Distribution SX.e. You might also have to run the Sales Entry Processing Back Order Fill Report to update the balances.

When the OE RM is invoiced, these events occur:

• If the product was received as unavailable, it is moved from customer Unavailable to customer On Hand. It is removed from the first inspection unavailable reason type with enough quantity available. If no Unavailable is found, no amount is removed. Customer On Hand is used instead.
• A stock adjustment is created to reduce customer On Hand for the return quantity. If the customer On Hand quantity cannot cover the return quantity, the quantity is negative. Total On Hand cannot be adjusted below zero.
• A Return In transaction is created to increase distributor On Hand for the return quantity.
• For most available products, an Unavailable transaction is created to reduce the distributor On Hand and increase distributor Unavailable. If you return these types of products, you must manually move the product to distributor Unavailable after you create the PO RM but before you receive it:
  • Lot-controlled products
  • Serial-controlled products that are assigned serial numbers during receiving

After you create the PO RM, you must receive it in Storeroom to complete the return and remove the product from unavailable inventory.