Handling Rejected Items in Purchase Receipts

Handling Rejected Items in Purchase Receipts

Overview

This article outlines the process of managing rejected items, including how to return them and update your warehouse records accordingly.




1. Understanding Rejected Items in Purchase Receipts

When you receive goods from a supplier, you may find that some items do not meet your quality standards or are damaged. In iVendNext, you can categorize these items as rejected during the receipt process. Rejected items are typically moved to a Rejected Warehouse, which is a designated location for storing defective or unwanted goods.


Why Handle Rejected Items Separately?

  • Accurate Inventory Management: By segregating rejected items, you ensure that your main inventory reflects only usable stock.

  • Supplier Accountability: Rejected items can be returned to the supplier, ensuring that you are not charged for defective goods.

  • Financial Accuracy: Proper handling of rejected items ensures that your financial records accurately reflect the value of usable inventory.



2. Steps to Handle Rejected Items in Purchase Receipts

iVendNext makes it easy to manage rejected items directly within the Purchase Receipt document. Follow these steps to handle rejected items and create a return entry:


Step 1: Receive Items in the Purchase Receipt

When creating a Purchase Receipt, you will receive items from the supplier. During this process, you can specify whether the items are Accepted or Rejected.


Step 2: Specify Rejected Items

In the Purchase Receipt Item table, identify the items that are defective or do not meet your quality standards. For these items:


  1. Enter the Return Quantity: In the Received Qty field, enter the quantity of rejected items as a negative number.

  2. Set Accepted Warehouse to Zero: In the Accepted Warehouse field, set the value to zero to indicate that these items are not being added to your main inventory.

  3. Specify the Rejected Warehouse: In the Rejected Warehouse field, enter the quantity of rejected items as a negative number. This ensures that the items are moved to the Rejected Warehouse.


Step 3: Submit the Purchase Receipt

Once you have entered the details for the rejected items, submit the Purchase Receipt. The system will automatically:


  • Update the Rejected Warehouse: The rejected items will be moved to the Rejected Warehouse, ensuring they are not included in your main inventory.

  • Adjust Stock Levels: The stock levels in the Accepted Warehouse will reflect only the usable items.



3. Returning Rejected Items to the Supplier

After identifying and segregating rejected items, the next step is to return them to the supplier. iVendNext allows you to create a Purchase Return for rejected items, ensuring that your inventory and financial records are updated accordingly.


Step 1: Create a Purchase Return

To return rejected items, follow these steps:


  1. Open the Original Purchase Receipt: Locate the original Purchase Receipt that contains the rejected items.

  2. Create a Return: Click on Create > Return to generate a new Purchase Receipt with the Is Return checkbox selected. The items, rate, and taxes will appear as negative numbers, indicating a return.

  3. Submit the Return: Submit the Return Purchase Receipt to finalize the return process.


Step 2: Impact on Stock and Accounting

When you submit the Purchase Return for rejected items, the system will:


  • Decrease the Item Quantity: The quantity of rejected items in the Rejected Warehouse will be reduced.

  • Update the Original Purchase Receipt: The Returned Quantity in the original Purchase Receipt will be updated. If 100% of the items are returned, the status of the original Purchase Receipt will change to Return Issued.

  • Adjust Accounting Entries: The Stock In Hand account will be credited, and the Stock Received but Not Billed account will be debited, ensuring accurate financial records.



4. Rejected Items

  • Rejected Items in iVendNext are items that do not meet quality standards or are damaged upon receipt.

  • You can specify rejected items in the Purchase Receipt by entering negative quantities in the Received Qty and Rejected Warehouse fields.

  • Rejected items are moved to a Rejected Warehouse, ensuring that your main inventory reflects only usable stock.

  • You can create a Purchase Return for rejected items, which updates stock levels and accounting records accordingly.



    • Related Articles

    • Handling Purchase Receipts and Stock Updates

      Overview This article outlines the steps to create and manage Purchase Receipts and update stock levels in iVendNext. 1. What is a Purchase Receipt? A Purchase Receipt is a document that confirms the receipt of goods from a supplier. It serves as ...

    • Managing Purchase Receipts in iVendNext: A Step-by-Step Guide

      Overview This article gives you an overview of creating, managing, and troubleshooting Purchase Receipts in iVendNext. 1. What is a Purchase Receipt? A Purchase Receipt is a document that: ✔ Confirms physical receipt of goods from a supplier. ✔ ...

    • Handling Sales and Purchase Invoices

      Overview Sales and purchase invoices are key to tracking revenue and expenses. iVendNext makes it easy to create, manage, and monitor these invoices for smooth financial operations. This article highlights essential features and best practices. 1. ...

    • Post-Submission Actions: Purchase Receipts, Invoices, and Payments

      Overview This article outlines the key post-submission actions in iVendNext, including how to create Purchase Receipts, generate Purchase Invoices, and manage Payment Entries. 1. Understanding Post-Submission Actions 1.1 Purchase Receipts A Purchase ...

    • Understanding Purchase Transactions

      Overview This article will guide you through the key components of purchase transactions, including Purchase Orders, Purchase Receipts, Purchase Invoices, and Payment Entries. 1. Key Components of Purchase Transactions Some of the key components of a ...