Payable to supplier and standard quarantine handling compared

To help you choose between standard quarantine handling and quarantine handling payable-to-supplier, the following table lists the main differences.

LN ProcessNo payable to supplierPayable to supplier
General

Applies to items sent to quarantine after rejection during:

  • Inbound or outbound inspection
  • Production upon reporting an operation complete
Only applies to items originating from purchase orders or purchase schedules sent to quarantine after rejection during inbound inspection.
Confirm receiptThe items become company owned.Register received items as approved on purchase order. The items become company owned.
Warehouse inspectionsUpdate purchase order with approved quantities. No invoicing and payment of the entire received quantity until the warehousing inspection and quarantine processes are completed.Received items remain registered as approved. This facilitates invoicing and payment of the entire received quantity before the warehousing inspection and quarantine processes are completed.
Send items to quarantineThe items originating from purchase orders or schedules become customer owned, which in actual practise means supplier owned.The items remain company owned.
Inventory valuation in quarantineValued as customer owned inventory.Quarantined items are valuated identically to items in receipt locations. On the inventory valuation report, quarantine items are listed with the original receipt value.
Use as is/No fault found
  • Create new receipt.
  • Update purchase order with approved quantities.

Directly create inbound advice to the storage location, create no receipt. If the warehouse is not location-controlled, directly put away the accepted inventory.

ScrapCreate back orders or potential back orders for items originating from purchase orders or purchase schedules.

Create no back orders or potential back orders.

Create no debiting or other supplier payment related financial transactions.

ReworkRework of quarantined items originating from purchase orders or purchase schedules not allowed.Rework of quarantined items originating from purchase orders or purchase schedules allowed.
ReclassifyReclassification of quarantined items originating from purchase orders or purchase schedules not allowed.Reclassification of quarantined items originating from purchase orders or purchase schedules allowed.