Process quarantine inventory - return to vendor

The Return to Vendor disposition is used to return quarantined items to the supplier.

This applies to purchased items rejected in various scenarios. For example, items:

Rejected upon receipt from the supplier
Serving as production materials that are rejected when:
- issued from the warehouse to the work center
- transferred to another warehouse
Rejected upon inventory inspection.

After processing the disposition or disposition lines for which you selected Return to Vendor, LN creates a purchase return order and launches the outbound process that issues the items from quarantine and ships the items to the supplier. The purchase return order is the disposition order displayed in the Disposition Order field of the Quarantine Inventory Disposition (whwmd2172m000) session.

For purchased items rejected upon receipt from the supplier, the purchase return order is linked to the purchase order with which the items were received.

Items used as production materials issued to the job shop can be rejected and sent to quarantine during outbound warehouse inspections.

Items that are rejected during inventory inspection can also be quarantined.

If the disposition is Return to Vendor in this scenario, there is no purchase order that can be related to the items.

In such cases, LN verifies whether the combination of item and buy-from or ship-from business partner of the disposition line(s) is available in the purchase order actual or history data. If not, a warning message is displayed when the business partner is entered. The return order can be generated nevertheless, it is allowed to ignore the message.

After the purchase return order is released to Warehousing, LN creates a warehousing order of transaction type Issue to issue the items from quarantine. The ship-to information of the warehousing order is copied from the purchase return order.

The outbound and shipment procedures associated with the warehousing order are used to ship the goods back to the supplier. When generating outbound advice, LN only uses the inventory blocked for quarantine.

Note: If part of the purchase return order was not shipped, and no back orders apply, the not-shipped quantity is set back to Awaiting Disposition in the quarantine inventory.

Returning pegged rejects

LN takes the peg information for the purchase return order from the order from which the purchase return order was generated. For items rejected during receipt, this is the information from the receipt line pegs of the warehousing order related to the originating purchase order. For items rejected during issue, this is the information of the outbound order line pegs of the warehousing order related to the purchase return order. For items rejected during inventory inspection, the peg information is taken from the Inventory Inspection Line Peg Distribution (whinh2138m000) session.

LN selects the pegs having a quantity in quarantine.

The quarantine quantities are displayed in the Quarantine Inventory field of the Receipt Line Peg Distribution (whinh3528m000) and Outbound Order Line Peg Distribution (whinh2190m000) sessions.

The quantities to be returned are subtracted from the quarantine inventory and subsequently the project inventory.

For the pegs involved, the return quantity is first subtracted from the pegs whose original receipt line or outbound order line peg quantity exceeded the ordered quantity. The overdelivered quantity to be subtracted is equally apportioned to each peg.

If this does not cover the entire return quantity, the remaining quantity to be returned is subtracted from the pegs whose original receipt line or outbound order line peg quantity exceeded the required quantity in sequence of peg line number: first line number 10, then 20, and so on.

Next, if this still leaves a quantity to be returned, the return quantity is subtracted from the remaining pegs starting with the peg with the latest requirement date.

For items rejected during inventory inspection, the return quantity is subtracted from the peg distribution in ascending order, starting with the unpegged inventory. Next, the pegs having excess inventory are taken, followed by the pegs with ATT inventory, and finally all other pegs. See Inventory inspections for information about inventory inspections.

You cannot manually change the quantities to be returned on the purchase return order. You can only change these quantities by changing the purchase return order line pegs.

Ownership

Issues of consigned or customer owned items are performed according to the settings of the Issue Ownership and Issue Strategy fields in the outbound order lines.