Mark an item as Received in the system before initiating a return or processing a replacement — even if the item will not be kept. This step ensures your ERP system can authorize invoice payment, which allows credits and adjustments to be applied correctly.
Scenario 1: Defective or Incorrect Items (Replacement)
Situation: You receive an item that is damaged or incorrect, and the supplier is shipping a replacement.
Required Action: Mark the original item as Received.
What to Expect:
- The supplier will issue a Credit Memo for the original item.
- The supplier will issue a New Invoice for the replacement item.
Why This Matters: Marking the item as Received allows the original invoice to be processed. This gives the Credit Memo a balance to offset. Without this step, the credit has nothing to apply against and the financial flow breaks down.
Scenario 2: "Change of Mind" Returns
Situation: An item is delivered but your team decides to return it.
Required Action: Mark the item as Received before initiating the return.
What to Expect:
- The supplier will issue a Credit for the returned item.
Why This Matters: Even though the item is going back, your ERP system requires the Receipt action to authorize payment of the invoice. The credit issued after the return will then cancel out that payment. Skipping the Received step, will prevent the credit from being processed correctly.