Managing Broken Material

Managing Broken Material

In this section we will cover how to handle broken material when they come in from receiving.

Handling the broken material

• Go to Inventory > Warehouse Manager > Manage Suspect On Hand > Manage Broken Items

  • Here, you can see a list of everything that is in the Suspect On Hand Bin.

• If you would like to return an item to a vendor, you will first need to select the Vendor to return to. When you are searching for a vendor, the default vendors that are displayed are all the vendors related to this item's manufacturer (which is determined in Purchasing > Manufacturer/Vendor Relations). Then you will need to specify a quantity and the location to put it in your warehouse before it is returned (such as the ReturnToVendorBin location).

• When you hit the Process button, an unconverted Return To Vendor is created in the system with the items on it. You will need to find the RTV and convert it to finish the RTV process.

Vendor Credits

• In the scenario that the vendor doesn’t want the material back and prefers to just give you a credit, go to the Vendor Credit column and select the ‘...’ and enter the quantity of items that the Vendor will credit you for. Based on the cost of the item at the time of purchasing the item, the vendor credit amount will also be shown.

• Once you process the Vendor Credit the Accounting AP process will take over.

Write Offs

• The last option you have is to write the item. In the Trash section, you would select a quantity and then click the "..." in the Accounting section. This will bring up the window seen below. This will allow you to mark the item as a credit or a write-off. If you write the item off, your expense ledger account will be updated. Otherwise, your customer will be credited for this item.

  • In the scenario that you are going to write off and trash an item, you may need to do a stock adjustment to remove the quantity from the stock you have on hand.