PO31 returns posting accounts

Does anyone have any documentation that they can share related to the internal transactional posting that occur with Returns (PO31)? From the creation to the PO31 to the AP Credit match to the closing of the return.

Thank you

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Infor Lawson Supply Chain Management - Discussion

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anita-greiter

The transaction I am most interested in hearing about, is when you close the PO31 related to inventory. This would be after the credits where applied and there are still dollars sitting in the AP credit/accrual account.

How do other organizations reconcile the ones that remain open after each quarter?

pcesarz

[View:/cfs-file/__key/communityserver-discussions-components-files/54/PO31-Inventory-item-transactions.xlsx:320:240]

We do all of our vendor returns as chargebacks - even inventory. We don't wait for the credit to come in, but when it does AP looks for the VR to make sure they don't apply the credit twice. Our Finance department did job explaining what happens when you do a vendor return for inventory. See attached. Hope this helps.

anita-greiter

Thank you, that was a nice balance sheet explanation!

How does the chargeback work exactly? We have never used that option.

Are there issues if the vendor doesn't completely provide the total amount of the expected credit>?

pcesarz

With the vendor return coded as a chargeback instead of a credit memo, it closes as soon as it is shipped. The CB comes off the next check to the vendor automatically. If the credit memo comes in (or the vendor calls) and the CB was for more than the credit, the AP department verifies the difference with the buyer and then pays the vendor back. If the credit is for more than the CB, the AP department also verifies it with the buyer and applies the additional credit to vendor return.

The only issues we ran into were early on when we started this practice. For our quick pay vendors, we would take the credit before the vendor even issued it. The vendors didn't like it initially. But we found that our vendors weren't very quick at sending the credit memo (if they sent it at all) and using the chargeback ensures we are getting the credits. Plus, having to manage the few VR's we had to pay back is far less work than calling to look for credits for open vendor returns.

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