Inventory & Purchasing: Receiving Damaged Products

Issue: A shipment arrives with product that is damaged or was damaged in transit.

Environment: Comsense Enterprise

Resolution: Update the purchase order to include the damaged product and advise payables to short pay the invoice. Complete a supplier return for the damaged product.

Note: Before proceeding, ensure your administrator has Set-Up for Supplier Shipment Errors.

In this article:

Update Your purchase order

Always add the damaged item as an item shipped in error even if you stock the item in your inventory. The damaged product is not going into stock and should not be counted as stock.

Add the Damaged Product Line Item

  1. In the Purchase Order window, open your purchase order.
  2. Right-click the Products pane.
  3. Click Add Purchase Order Line Item.
Click image to enlarge
Purchase Order window; shows Products pane right-click menu.
Image 1: Purchase Order Window Add Purchase Order Line Item
  1. In the Managed Product window, select "Product Shipped in Error" managed product.
  2. Click Add
    • The product will move to the bottom pane
Click image to enlarge
Managed Products window; shows product shipped in error line item and the Add button.
Image 2: Managed Products Window
  1. Click OK

Your purchase order now has the damaged product.

Update the Damaged Product Line Item(s)

  1. In the product line item, update Qty column.
  2. In the Internal Note field and in the Note column, enter the details of the damage.
    • E.g. Exit device is rusted
Click image to enlarge
Purchase Order window; shows note on explaining product damage.
Image 3: Product Shipped in Error Note
  1. Click Save.
  2. Send the Updated Purchase Order Receiving report to the Receiving department.
  3. Advise the Payables department to short pay the invoice.

Your Purchase Order Receiving report now includes the damaged product.

Replace the Damaged Product

Ask the supplier to send a replacement product. The supplier must send you the replacement product under the same purchase order. Do not unsource the product and create a new purchase order.

Handle the Damaged Product

Discuss with the supplier what they would like to do with the damaged product. The supplier will either ask you to:

  • Dispose of the product 
  • Send the product back

In both cases, Complete a Supplier Return for the damaged product. The cost of the damaged product is in your general ledger under disputed charges and reconciling the charges requires a credit invoice from the supplier.

Tip: If you are not actually returning the physical product, write a note on the supplier return detailing the supplier's instructions.

Click image to enlarge
Supplier Return window; shows notes detailing the supplier's instructions for the product.
Image 4: Supplier Return for Damaged Product
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