So, if we get a bad part in from the supplier, my purchaser is using the non-con process to send it back. That should be right. However, if the corrective action is for them to send us a replacement, how does that replacement get into stock? Is that supposed to be a credit and then another PO is made? We have a bunch of parts that have negative inventory and I think that this is why. How do you guys handle this situation?
Hi Brandon,
We do a discrepant material return (DMR) requesting AP to make a debit memo, per screenshot. Then we add a line to PO or create a new one to satisfy the purchasing need and receive that in when get it in.
Nancy
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So then you end up (overall) paying the vendor invoice, getting them to issue a credit back, and then pay a second vendor invoice. Does that sound right? It seems like the right way to do it, just a lot of hassle. But I suppose that’s to prevent things like money laundering and whatnot to have those types of transactions. (I’m not an accountant, can you tell?).
I did talk the purchaser a bit, and he says that if they are sending a replacement, they just do it outside of Epicor 
. He says he’s only doing the non-con on the parts that they don’t need and sending back, (so basically only our mistakes). I guess we have to define out process a bit better.
I am currently working on this process. I believe you are correct in the PO but there is no tie to the DMR in this. I am planning to create a UD field on the PODtl and DMRhead for this.
Hi Jeremy,
I think you need to do the nonconformance on PO receipt, rather than from inventory. Then inspection processing and DMR if return to vendor. Also, I think you can flag the receipt for inspection required and then that goes directly to inspection processing without nonconformance.
Nancy
Nancy
Thanks Nancy! Quality processing seems all over. I don’t see a PO receipt option
I’m still learning so I’m sure I do this somewhere else.
If the part is already received into inventory, then non conformance will be from inventory.
Vinay Kamboj
right, that was my confusion. Ok so it seems if the vendor repairs the part there is step missing in Epicor.
I should be able to do a miscellaneous shipment to send it to the supplier but how do I receive it back?
If I create another PO for the receipt there is no tie to the DMR unless I create a UD field for it. Is this correct?
The Epicor procedure is to the return the bad parts and create a Debit Memo. This is the last tie to the DMR.
If you want parts back, open a new line on the previous PO or a new one. Use the same cost as the previous PO. If you put zero and use Avg or Lot costing, you will mess up your inventory costs. If you need the DMR number on the PO/Line then put it in the comments.
Ok, I read up on that as well and believe we will need to follow that process rather than find a way around it. Thank you!
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The way we do this here (in the case of a free replacement or rework at their expense) is to delete the DMR-REJ action (and any lingering unused debit memo) and then do a DMR-STK transaction.
My former boss (then plant controller) came up with that and he really liked its simplicity.
Big warning: we later found that there is a bug in Epicor if you do this across a period.
For reference, this is how the GL works with it all (given our GL code setup - substitute your own):
My note at the end kind of alludes to the bug. I think I was on to something before I fully understood the bug. What it really means is, in the same period, the RTV rejections seem to disappear from the GL.
I have been thinking about this same issue the approach that I am testing now is:
- With the parts in DMR do not reject the parts - that takes them out of Epicor.
- Set up a rework job to make the part that you want to have returned/reworked
- The job has one operation which is a subcontract one back to the supplier.
- The parts move out of DMR by Accepting them into the job as material.
- Using Subcontract shipment - return the parts to the supplier
- The supplier returns the parts repaired or replaces the parts and these are received to the job.
- Perform job receipt to inventory to put them into stock.
Hope this helps
Bruce
We have used this process successfully. It ticks all the boxes. It avoids the debit memo but adds the job lifecycle step but functionally equivalent.