Introduction to Return to Supplier
The supplier return (or return to supplier) process described in this scenario is different from a simple return delivery to the supplier:
A return delivery is mapped as a goods issue posting (with or without delivery document) that immediately follows a goods receipt for a purchase order and relates to that purchase order: for example, for quality reasons, goods received must be returned.
A supplier return makes no reference to a concrete initial procurement process. Instead, it is treated as an entirely new process: It begins with the creation of a return purchase order and is followed by the goods return. The process is closed with the creation of a credit memo, which transfers the liability to the corresponding supplier.
The following are examples of scenarios for returns to supplier:
- You procure filters from a supplier. You return the used filters to the supplier for recycling and receive a credit note at the agreed price.
- You agree with your cable suppliers that you can return cable residues to them. You then receive a credit memo for the value of the copper contained in the cables (Paul’s scenario).
- You return unsold merchandise to your supplier after promotion or season ends and receive a corresponding credit note.