In this video, you'll learn how to process a vendor return from start to finish and apply the resulting vendor credit toward a replacement purchase order. We'll walk through creating and submitting a vendor return, completing the return after the vendor confirms receipt, recording the vendor credit, and using that credit when creating a new purchase order. By the end of the lesson, you'll understand how to accurately manage vendor returns and ensure credits are properly applied to replacement inventory purchases.
SOP: Process a Vendor Return and Apply the Credit to a Replacement Purchase Order
Objective
This SOP explains how to create, submit, complete, and credit a vendor return, then apply that credit to a new purchase order for a replacement item. Follow these steps to ensure the return is properly documented and the credit is correctly reflected on the new order.
Key Steps
1. Navigate to Vendor Returns 0:07
From the main menu, go to Inventory.
Click Vendor Returns.
Review the list of vendor returns and their statuses:
Submitted
Open
Cancelled
Completed
2. Create a New Vendor Return 0:26
Click Plus to start a new vendor return.
Select the vendor you are returning the item to.
After selecting the vendor, click Add Item to choose the item(s) originally received from that vendor.
3. Find and Select the Item to Return 0:55
Use the Search By field to locate the item quickly.
Search by either:
Serial number
Model number
Click the correct item to add it to the vendor return.
4. Enter Return Details and Submit 1:24
Enter the return authorization number.
Add any applicable fees, such as:
Restocking fee
Additional return fees
Click Save.
Click Submit to send the vendor return for processing.
5. Verify the Submitted Return 1:47
Return to the Vendor Returns list.
Locate the return under Submitted.
Sort or click the creation date to find the most recent return.
Confirm the vendor name and return authorization number are correct.
6. Complete the Return and Create the Credit 2:12
Open the submitted return by clicking View.
Confirm the vendor has received the returned item and the paperwork is complete.
Click Complete and Make Credit.
If prompted to choose a different vendor, select No to continue with the original vendor.
Enter the credit date.
Enter the reference number.
Click Save.
Confirm the return status changes to Completed.
7. Create a New Purchase Order for the Replacement Item 3:18
Go to Purchase Order.
Select the same vendor used for the return.
Start a new purchase order.
Fill in the required order details, including:
Requested date
Ship by date
8. Add the Replacement Item to the Purchase Order 3:53
Use the vendor return record to identify the replacement item’s model number.
Copy the model number.
Return to the purchase order and use Quick Add to search for the model.
Select the correct replacement item and add it to the order.
9. Apply the Vendor Return Credit to the Purchase Order 4:14
Review the item’s unit cost.
Do not zero out the unit cost.
Enter the vendor return amount in the Credits field.
Use the full credit amount from the completed vendor return.
Click Save.
Confirm the purchase order total reflects the credit correctly, resulting in the expected balance (often zero if fully covered by credit).
Cautionary Notes
Do not submit a vendor return until the item, vendor, and return authorization number are verified.
Do not zero out the unit cost on the purchase order item. Apply the return amount in the Credits field instead.
Make sure the vendor return is marked Completed before using the credit on a purchase order.
Confirm the credit amount matches the completed vendor return exactly.
If the wrong vendor is selected during completion, stop and verify before saving.
Tips for Efficiency
Use Search By with the serial number or model number to find items faster.
Keep the vendor return paperwork handy so you can quickly enter the reference number and credit date.
Copy and paste the model number from the vendor return into Quick Add to reduce search time.
Review the vendor return status list regularly to ensure submitted returns are completed promptly.
Double-check the purchase order total after applying the credit to confirm the amount is correct.