Manage Purchase Order Claims

This document explains how you work with purchase order (PO) claims.

When goods are rejected in the quality inspection activity, a claim for the supplier is often created. Usually, either a replacement delivery or a credit note from the supplier is requested.


Depending on the workflow, the following outcome is expected:

The workflow differs depending on whether a replacement delivery or a credit note is requested.

If a replacement delivery is requested, a subnumber on the original purchase order line is created automatically, making it possible to receive the replacement delivery on the purchase order. The system can also remove the rejected goods from the rejected goods location automatically. This is done by using a requisition order. If a replacement delivery is requested, financial transactions are created in the issue of material.

This will not happen if a credit note is requested from the supplier.

As part of this process, the following tables are updated:


Purchase Order Claim Header


Purchase Order Claim Line

Before you start

Follow these steps


Create claim manually

  1. Start 'Return To Supplier. Open' (PPS390/A).

  2. The claim must be connected to a supplier. Specifying a purchase order number is optional.

    If a number is specified, it will be used for information purposes only and no data will be collected from the purchase order.

  3. The panel sequence will be EF1 regardless of what is defined.

  4. Select Create.

Create claim automatically

  1. Depending on the settings in 'Settings - Purchasing' (CRS780), the 'QI Result – auto claim' field, a claim will be created automatically if the QI result code is:

    2 = Approved with remarks

    3 = Partially rejected

    4 = Rejected.

    The QI result code is specified in 'Purchase Order. Inspect Goods' (PPS310)' on the E panel.

  2. The automatically created claim will have status 10='Preliminary'.

    Status 10 is the normal status for automatically added claim errands when the quality inspection result is reported.

  3. When the claim is automatically created from the quality inspection, the goods are placed in a location with status 3='Rejected'.

    This location is defined in 'Settings - Purchasing' (CRS780).

  4. Start 'Return to Supplier. Open' (PPS390/B).

    • The claim officer is the buyer for the specific order. It can be changed on the E panel.
    • The claim reference is the person who reported the quality inspection. It can be changed on the E panel. Use view 2 on the B panel to sort on the claim reference.
    • The search key is defined (ten-characters) when a new supplier is specified in (CRS620).
    • The claim number is connected to the specific purchase order number and supplier.
    • The claim status will be set to 10 (preliminary). After the claim is approved, the status is manually raised to 15, making it possible to print the claim note.
  5. Open the E panel.

    • Status. If the claim was created automatically from the quality inspection, you must now change the status from 05 to 06='Work with claim is active', because then, when you are finished with the claim, the status on the claim will be set to 15='Approved'.

    You may select one of four actions to be taken. The selected action will be written on the claim note. The valid alternatives are:

    • Replacement delivery. A new delivery will be requested from the supplier. If this action is chosen, a new purchase order line is created as a subnumber to the original purchase order line.
    • Supplementary delivery. A supplement for the order will be requested from the supplier.
    • Credit to issue. A credit note for payment for the order will be requested from the supplier.
    • Cost to repair. Repair costs will be requested from the supplier.

    Supplementary details can be specified in the text block (user-defined button) and then printed on the claim note.

    • Replacement delivery date. Proposed if a lead time for a replacement delivery is specified in the item/supplier table (PPS040).
    • Claim notes. The text specified here will be printed on the claim note under the heading. The text may, for example, be a message to the supplier indicating what action you expect to be taken.
    • Receipt date. The date when the goods for which a complaint was made were received.
    • Transaction identity. Refers to the requisition and distribution order type that will be used to create an issue of rejected material (transaction type 41='Requisition order issue'). This order type is proposed from 'Settings – Purchasing' (CRS780). The issue will take place after the claim document is printed. The setup on the dispatch policy (MWS010) determines whether a picking list report is necessary or whether the withdrawal will be made immediately.
    • Update material plan. Indicates if this pick out should be displayed in (update) the material plan.
    • Media profile. Indicates how to send the claim information to the supplier.
  6. Open the F panel. The F panel is used for addresses. These addresses are defaulted from 'Supplier. Connect Address' (CRS622). These addresses can be changed by selecting the 'Change/Add address' field.

    • Supplier's postal address - where the claim note should be sent.
    • Supplier's ship-via address - the address the transport goes through before it arrives at the final address.
    • Supplier's receiving address - where to send the rejected goods.

Work with claim lines

  1. Open 'Return To Supplier. Open Lines' (PPS391). When automatic creation of claims is used, the rejected items are displayed on the B panel.

  2. Open the E panel.

    • The supplier item number is the item number used by the supplier for identifying an item.
    • The reject reason indicates the reason for rejection. It is defined in 'Reject Reason. Open' (CRS090). The reason code was specified in the quality inspection process.
    • The quality cost is the cost for the quality inspection performed. It is used for informational purposes only.
    • Separation indicates if this line will be moved to a new claim errand number. The field can be used to separate two claim lines that should be processed differently. For example, perhaps a supplier should credit one line and will send a replacement shipment for the other line.
    • F6 Text. The text specified during the quality inspection is displayed and can be changed in the text block. This text is displayed as a line text on the claim note.

Print claim documents

  1. To print the claim note, select function key F14='Print' on the (PPS390/B) panel.

    The claim must be in status 15='Approved'. The status is set manually after a course of action has been decided for the claim.

  2. 'Claim. Print Document' (PPS820) is started.

    Printouts can be made for a certain claim officer, for a special supplier or by specifying claim note numbers.

    After the claim note is printed, the status on the claim note will be raised to 20.

  3. If you request a replacement delivery, the printout will also activate a requisition order for issuing of the rejected goods. The goods can be issued with or without a picking list depending on the settings on the issue's dispatch policy (MWS010). If the picking list must be reported, this is done in 'Picking List. Report' (MWS420).

  4. For information about how to manage a requisition order issue, see Requisition Order Flow.

Display transactions

The following options available to display transactions connected to a claim.

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