When you need to return items to your vendors, you’ll use the NetSuite Vendor Return Authorizations feature. Let’s take a quick look at this feature and how it works in NetSuite.
NetSuite Vendor Return Authorizations Overview
First, you’ll need to enable this feature. You’ll find the Vendor Return Authorizations feature in the Basic Features section of the Transactions tab in Enable Features. You will also need to enable the Advanced Shipping feature, which you can find under Shipping & Receiving section of the Transactions tab.
NetSuite Vendor Return Authorizations Process
The vendor return process has four simple steps: (1) creating a new return authorization form; (2) approving the return; (3) shipping the return to your vendor; and (4) entering the corresponding credit or refund for the return from your vendor. Let’s take a quick look at each of these steps.
Creating a New Vendor Return Authorization Form
As is typical with NetSuite, you can either create a standalone return authorization record or create one from a purchase order. To create an individual return authorization form, navigate to Transactions > Purchases > Enter Vendor Return Authorizations. You’ll need to fill out relevant details on this form, including the subsidiary, the vendor, and the date. You’ll also include items that are being returned using the Items subtab.
To create a vendor return authorization form from a purchase order, navigate to Transactions > Purchases > Enter Purchase Orders > List. Find a PO in the list that has the status of Pending Bill or Fully Billed and select the View button. On the purchase order, select the Authorize Return button at the top of the page.
This will open a Vendor Return Authorization record that is auto-populated with the data from the original purchase order. You can check that all this information is still accurate for the vendor return. For example, if you are making a partial return of an order, you can remove unnecessary items from the return authorization. Then, save the record.
Approving the Vendor Return
You may want a supervisor to approve a vendor return before the return is finalized. To approve a vendor return, navigate to Transactions > Purchases > Approve Vendor Returns.
On this page, you can search for a specific return to approve by entering the return number in the Select Return Number field, or you can enter a date range to pull up returns needing approval. Once you’ve selected returns you wish to approve, hit the Submit button.
Shipping the Return to Your Vendor
The next step in the return process is to ship the returned item to your vendor. To indicate that a return has been shipped, navigate to Transactions > Purchases > Ship Vendor Returns. On this page, you’ll see any approved vendor returns that are eligible to be shipped. You can filter the list by vendor using the Vendor dropdown list at the top of the page, or you can search for a specific return using the Select Return Number field. To mark a return as being shipped, select the Return checkbox next the correct return and hit the Submit button.
This will take you to a new Item Fulfillment page, where you can verify that all the items on the return are being shipped to the vendor. Under the Items subtab, any items that have the Fulfill checkbox marked will be returned to the vendor.
Entering the Corresponding Vendor Credit
You’ll need to enter a vendor credit for the return so you know how much that vendor owes you for the returned item. To enter a vendor credit, navigate to Transactions > Payables > Credit Vendor Returns.
On this page, you can use the Select Return Number field to choose a specific return to credit. In the list of returns that are eligible for receiving a credit, select the checkbox in the Credit/Refund field next to the return you wish to credit, and then hit the Submit button. This will generate a Bill Credit record, which you can review for accuracy and then save.
Conclusion
The NetSuite Vendor Return Authorizations feature allows you to easily manage all your vendor returns. If you enjoyed this blog, be sure to subscribe to our mailing list below to receive each week’s latest NetSuite blog post directly in your inbox.