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 Process | No payable to supplier | Payable to supplier |
---|---|---|
General |
Applies to items sent to quarantine after rejection during:
|
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 |
|
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. |