Purpose & Net Value of Return PO - For Damaged or Recycled Material or both

Question

Dear all
As far as I know about the Return PO, they are summarized as follows:
Examples for returns for purchase order:
. You procure filters from a vendor. You return the dirty filters to the vendor for recycling.
. You have agreed with your cable vendors that you can return cable remnants to them. You then receive a credit memo for the value of the copper contained in the cables.
This is always happen after we have posted Invoice Verification (MIRO) in the system and make the Outgoing Payment (F-53).
Question 01:
Does return PO cover both scenario such as
(a)Return the damaged material to vendor which we discover its defect after invoice verification or post outgoing  payment has been made?
(b) Return the recycle material to vendor after invoice verification or post outgoing  payment has been made?
Question 02:
We are using Info Record for the material.
(a) In the case of Return the damaged material to vendor, the return PO will have the net value suggested from info record
      and it makes sense since we want our AP (account payable) to be reduced.
(b) In the case of Return the recycle material to vendor,  the return PO will have the net value suggested from info record but
      iit makes no sense as vendor will not agree to have the recycle material same price as the first purchase price.
Please advise.
Thanks.
Edited by: Daimos on Oct 12, 2009 3:28 PM

Answer 1

Hi,
Q-1
a) Return the damaged material to vendor which we discover its defect after invoice verification or post outgoing payment has been made?
For damaged returns, you need to cancel the Gr Posted , movement type  102 and thenreturn it to vendor using movement type 122. So return P.o. function is not applicable here.
b) Return the recycle material to vendor after invoice verification or post outgoing payment has been made?
Yes , for recycled material as stated by you it is applicable.
We use  return purchase order, when purchase order is made. Here we tick the Returns indicator in the item overview of purchase order screen.Movement type for return indicaort is 161.
Also would like to add a example here;
Q-2) In the case of Return the recycle material to vendor, the return PO will have the net value suggested from info record but
iit makes no sense as vendor will not agree to have the recycle material same price as the first purchase price.
Supopose you order a printer cartridges from your vendor for which you are creating retun P.O. then you must define top two material number one with full printer cartridges, for which you pay vendor and other material number for empty cartridges for which you create a credit memo when you return them..
So when here you can create a Purchasing info record for empty cartridges with a price agreed with your vendor, and can create a credit memo.
So now you have two info records one for full filed cartridges and other one for empty cartridges . So price issue will ntoa rise.
Regards,
Tushar Patankar
Edited by: Tushar Patankar on Oct 13, 2009 11:47 AM