| Payable to supplier and standard quarantine handling
comparedTo help you choose between standard quarantine handling and
quarantine handling payable-to-supplier, the following table lists the main
differences. LN Process | No payable to supplier | Payable to supplier |
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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 receipt | The
items become company owned. | Register received items as approved on purchase order. The items
become company owned. | Warehouse inspections | Update 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 quarantine | The 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
quarantine | Valued 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. | Scrap | Create 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. | Rework | Rework of quarantined items originating from purchase
orders or purchase schedules not allowed. | Rework of quarantined items originating from purchase orders or
purchase schedules allowed. | Reclassify | Reclassification of quarantined items originating from purchase
orders or purchase schedules not allowed. | Reclassification of quarantined items originating from purchase
orders or purchase schedules allowed. |
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