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: 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.