Financial Gurus - process issues in DMR / supplier credits

Thank you for the replies. On the surface I agree 100% but as you probably suspected there is more to the relationship with this supplier. They are also our biggest customer. We buy materials from them, do value-add engineering and assembly and sell back to them as an assembled unit. So we don't have the leverage you might think.

We are having issues smooting out our processes for certain DMR / supplier credit scenarios. I've summarized below. Does anyone have advice in these areas? Willing to pay a consultant that has experience with these processes.

a.       Supplier Short Shipments – short shipments are a weekly problem with our biggest supplier. When we report short shipments to them they issue a replacement order under our same PO number. They bill us for both the short shipped items and the new order and then later on issue a credit for the short shipment. It can take weeks to get the credit. We want to use Epicor to track what we are waiting on credits for. We also have to pay the bill for the short shipment. At first we were doing this as an “unreceived” invoice line but then realized it will perpetually stay in the “Invoice/Receipt Match” screen with no way to clear it out since the item will never be received.

Our solution thus far is as follows. We are wondering if this is the best way or if there is a better alternative.

         i.      Receive the short shipped quantities as if we really did receive them

         ii.      Immediately Non-conformance/Inspection/DMR the short shipped quantities using a “Short Shipment” reason code

         iii.      Leaving the DMR open is our indicator within Epicor that we are waiting for a credit

         iv.      We then receive the items when they come in against the same PO (which is then over received). But this allows us to pay both invoices without using the “unreceived” line

         v.      When credit comes we close the DMR and initiate the supplier credit/debit memo from the DMR. However we are not confident in this because some seem to slip thru the cracks (they don’t always show up in the “Get” menu in AR Invoice Entry). We are not sure if there is a bug or we are doing something wrong.

Speaking of the “Invoice/Receipt Match” process…our AP person will use “unreceived” lines on AP invoices when she needs to pay a bill to take a discount and doesn’t want to wait for a resolution on short shipments. We thought this screen was going to be the way to track what suppliers owe us (either in goods or credits). Later we realized if they do not send us the items or decide to do the replacement order as described above the item stays stuck in this screen without the ability to “delete”. Thus it clouds our ability to use this screen to track the short shipments/credits.

b.      Supplier Returns & Replacements - We do not understand why we have to do a “Reject” in DMR in order to record a supplier return / RMA number. We want the DMR to remain open until we know the resolution to the RMA. Leaving the DMR open is an indicator we are waiting on the credit, or repair/replacement from supplier. If they are sending a replacement it would then just be an Accept from the DMR which you cannot do if you have already entered a Reject. How was the system designed to manage this process?

c.       AP Invoice Entry – “New DMR Credit Line” – this feature seems useful to tie a credit to a DMR. Is the best way to try to log  the credit in the DMR so it is “pushed” to the AP invoice screen or should we use this feature? The default search window is lacking, it only shows the DMR and action number, no part number, supplier name, or date.

d.      Defective DMR parts – we report to supplier and they reply to scrap the part and instruct us to short pay a future invoice and reference a ticket number for the incident. How do we close the DMR, post the credit, and short pay an invoice with the incident number being recorded and flowing thru each of these steps so it appears on the payment we send to the supplier? 


1)      If you order 100 and you get 90, you get an invoice for 90 right?  Then you tell the vendor you want your other 10.  Why are you using the DMR process for this?  It is not needed at all.  It sounds more like your vendor doesn’t know what they are doing and you are cleaning up their mess….I would stop that right now!  Create a report for POs that have been shorted and keep track of it that way.  IF they send you too many invoices for the last 10, screw it don’t enter the second one and call them up and say not accepting this invoice.  If this happens way too much, you may want to have a nice long chat with this vendor….I am not saying stop using them…but the work you are doing FOR THEM is insane!!  Yes, I have had conversations with various vendors that have done this to us….tell them it is not acceptable, you may be surprised at what they will do for you (if you have not already had the conversation)

2)      Supplier Returns….don’t reject until they have done their evaluation, but use the Miscellaneous shipment to send the parts back to them.  Once they have determined what they are going to do, then you can reject through DMR….or whatever the case may be.  Use the header of the Misc Shipment to record the RMA# they give you….then you can use it to fill in the DMR later.

3)      Once you find out from the Supplier that they will credit you then you can use the resolution to get a Debit memo and tie the DMR to the shorted invoice.  But I bet you would have gotten the original invoice regardless…and maybe even paid for it…the resolution for the debit memo is just a nice way of showing you have “credit” with the vendor internally.

4)      Defective DMR parts….if the vendor rejects them…use the debit memo to short pay the invoice.  Or use the debit memo to short pay the next invoice to them….it is a nice record to have when they come back and say hey why did you short pay this invoice?!?

I hope I have answered some of these issues….but I may have brought up more questions…..

 

Manasa

 

 

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Wednesday, November 04, 2015 10:29 AM
To: vantage@yahoogroups.com
Subject: [Vantage] Financial Gurus - process issues in DMR / supplier credits

 

 

We are having issues smooting out our processes for certain DMR / supplier credit scenarios. I've summarized below. Does anyone have advice in these areas? Willing to pay a consultant that has experience with these processes.

a.       Supplier Short Shipments – short shipments are a weekly problem with our biggest supplier. When we report short shipments to them they issue a replacement order under our same PO number. They bill us for both the short shipped items and the new order and then later on issue a credit for the short shipment. It can take weeks to get the credit. We want to use Epicor to track what we are waiting on credits for. We also have to pay the bill for the short shipment. At first we were doing this as an “unreceived” invoice line but then realized it will perpetually stay in the “Invoice/Receipt Match” screen with no way to clear it out since the item will never be received.

Our solution thus far is as follows. We are wondering if this is the best way or if there is a better alternative.

         i.      Receive the short shipped quantities as if we really did receive them

         ii.      Immediately Non-conformance/Inspection/DMR the short shipped quantities using a “Short Shipment” reason code

         iii.      Leaving the DMR open is our indicator within Epicor that we are waiting for a credit

         iv.      We then receive the items when they come in against the same PO (which is then over received). But this allows us to pay both invoices without using the “unreceived” line

         v.      When credit comes we close the DMR and initiate the supplier credit/debit memo from the DMR. However we are not confident in this because some seem to slip thru the cracks (they don’t always show up in the “Get” menu in AR Invoice Entry). We are not sure if there is a bug or we are doing something wrong.

Speaking of the “Invoice/Receipt Match” process…our AP person will use “unreceived” lines on AP invoices when she needs to pay a bill to take a discount and doesn’t want to wait for a resolution on short shipments. We thought this screen was going to be the way to track what suppliers owe us (either in goods or credits). Later we realized if they do not send us the items or decide to do the replacement order as described above the item stays stuck in this screen without the ability to “delete”. Thus it clouds our ability to use this screen to track the short shipments/credits.

b.      Supplier Returns & Replacements - We do not understand why we have to do a “Reject” in DMR in order to record a supplier return / RMA number. We want the DMR to remain open until we know the resolution to the RMA. Leaving the DMR open is an indicator we are waiting on the credit, or repair/replacement from supplier. If they are sending a replacement it would then just be an Accept from the DMR which you cannot do if you have already entered a Reject. How was the system designed to manage this process?

c.       AP Invoice Entry – “New DMR Credit Line” – this feature seems useful to tie a credit to a DMR. Is the best way to try to log  the credit in the DMR so it is “pushed” to the AP invoice screen or should we use this feature? The default search window is lacking, it only shows the DMR and action number, no part number, supplier name, or date.

d.      Defective DMR parts – we report to supplier and they reply to scrap the part and instruct us to short pay a future invoice and reference a ticket number for the incident. How do we close the DMR, post the credit, and short pay an invoice with the incident number being recorded and flowing thru each of these steps so it appears on the payment we send to the supplier? 

 

IMPORTANT NOTICE FROM API: This communication, including any attachments, contains information that may be confidential or privileged and is intended solely for the entity or individual to whom it is addressed. If you are not the intended recipient, please contact the sender immediately and delete this message. Any unauthorized disclosure, copying or distribution of this message is strictly prohibited.

IMPORTANT NOTICE FROM API: This communication, including any attachments, contains information that may be confidential or privileged and is intended solely for the entity or individual to whom it is addressed. If you are not the intended recipient, please contact the sender immediately and delete this message. Any unauthorized disclosure, copying or distribution of this message is strictly prohibited.
Wow, absolutely correct ;) maybe there is something else in the relationship but either way, the way to go is below. How many times have customers said this is the only way our system works.

From: Manasa Reddy manasa.reddy@... [vantage]
Sent: ‎04/‎11/‎2015 21:20
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Financial Gurus - process issues in DMR / suppliercredits

 
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1)      If you order 100 and you get 90, you get an invoice for 90 right?  Then you tell the vendor you want your other 10.  Why are you using the DMR process for this?  It is not needed at all.  It sounds more like your vendor doesn’t know what they are doing and you are cleaning up their mess….I would stop that right now!  Create a report for POs that have been shorted and keep track of it that way.  IF they send you too many invoices for the last 10, screw it don’t enter the second one and call them up and say not accepting this invoice.  If this happens way too much, you may want to have a nice long chat with this vendor….I am not saying stop using them…but the work you are doing FOR THEM is insane!!  Yes, I have had conversations with various vendors that have done this to us….tell them it is not acceptable, you may be surprised at what they will do for you (if you have not already had the conversation)

2)      Supplier Returns….don’t reject until they have done their evaluation, but use the Miscellaneous shipment to send the parts back to them.  Once they have determined what they are going to do, then you can reject through DMR….or whatever the case may be.  Use the header of the Misc Shipment to record the RMA# they give you….then you can use it to fill in the DMR later.

3)      Once you find out from the Supplier that they will credit you then you can use the resolution to get a Debit memo and tie the DMR to the shorted invoice.  But I bet you would have gotten the original invoice regardless…and maybe even paid for it…the resolution for the debit memo is just a nice way of showing you have “credit” with the vendor internally.

4)      Defective DMR parts….if the vendor rejects them…use the debit memo to short pay the invoice.  Or use the debit memo to short pay the next invoice to them….it is a nice record to have when they come back and say hey why did you short pay this invoice?!?

I hope I have answered some of these issues….but I may have brought up more questions…..

 

Manasa

 

 

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Wednesday, November 04, 2015 10:29 AM
To: vantage@yahoogroups.com
Subject: [Vantage] Financial Gurus - process issues in DMR / supplier credits

 

 

We are having issues smooting out our processes for certain DMR / supplier credit scenarios. I've summarized below. Does anyone have advice in these areas? Willing to pay a consultant that has experience with these processes.

a.       Supplier Short Shipments – short shipments are a weekly problem with our biggest supplier. When we report short shipments to them they issue a replacement order under our same PO number. They bill us for both the short shipped items and the new order and then later on issue a credit for the short shipment. It can take weeks to get the credit. We want to use Epicor to track what we are waiting on credits for. We also have to pay the bill for the short shipment. At first we were doing this as an “unreceived” invoice line but then realized it will perpetually stay in the “Invoice/Receipt Match” screen with no way to clear it out since the item will never be received.

Our solution thus far is as follows. We are wondering if this is the best way or if there is a better alternative.

         i.      Receive the short shipped quantities as if we really did receive them

         ii.      Immediately Non-conformance/Inspection/DMR the short shipped quantities using a “Short Shipment” reason code

         iii.      Leaving the DMR open is our indicator within Epicor that we are waiting for a credit

         iv.      We then receive the items when they come in against the same PO (which is then over received). But this allows us to pay both invoices without using the “unreceived” line

         v.      When credit comes we close the DMR and initiate the supplier credit/debit memo from the DMR. However we are not confident in this because some seem to slip thru the cracks (they don’t always show up in the “Get” menu in AR Invoice Entry). We are not sure if there is a bug or we are doing something wrong.

Speaking of the “Invoice/Receipt Match” process…our AP person will use “unreceived” lines on AP invoices when she needs to pay a bill to take a discount and doesn’t want to wait for a resolution on short shipments. We thought this screen was going to be the way to track what suppliers owe us (either in goods or credits). Later we realized if they do not send us the items or decide to do the replacement order as described above the item stays stuck in this screen without the ability to “delete”. Thus it clouds our ability to use this screen to track the short shipments/credits.

b.      Supplier Returns & Replacements - We do not understand why we have to do a “Reject” in DMR in order to record a supplier return / RMA number. We want the DMR to remain open until we know the resolution to the RMA. Leaving the DMR open is an indicator we are waiting on the credit, or repair/replacement from supplier. If they are sending a replacement it would then just be an Accept from the DMR which you cannot do if you have already entered a Reject. How was the system designed to manage this process?

c.       AP Invoice Entry – “New DMR Credit Line” – this feature seems useful to tie a credit to a DMR. Is the best way to try to log  the credit in the DMR so it is “pushed” to the AP invoice screen or should we use this feature? The default search window is lacking, it only shows the DMR and action number, no part number, supplier name, or date.

d.      Defective DMR parts – we report to supplier and they reply to scrap the part and instruct us to short pay a future invoice and reference a ticket number for the incident. How do we close the DMR, post the credit, and short pay an invoice with the incident number being recorded and flowing thru each of these steps so it appears on the payment we send to the supplier? 

 

IMPORTANT NOTICE FROM API: This communication, including any attachments, contains information that may be confidential or privileged and is intended solely for the entity or individual to whom it is addressed. If you are not the intended recipient, please contact the sender immediately and delete this message. Any unauthorized disclosure, copying or distribution of this message is strictly prohibited.

IMPORTANT NOTICE FROM API: This communication, including any attachments, contains information that may be confidential or privileged and is intended solely for the entity or individual to whom it is addressed. If you are not the intended recipient, please contact the sender immediately and delete this message. Any unauthorized disclosure, copying or distribution of this message is strictly prohibited.
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Sorry if I was a little too strong, I have very strong opinions on vendors.  But I will bend over backwards for customers.

Manasa

 

 

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Wednesday, November 04, 2015 6:25 PM
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Financial Gurus - process issues in DMR / suppliercredits

 

 

Wow, absolutely correct ;) maybe there is something else in the relationship but either way, the way to go is below. How many times have customers said this is the only way our system works.


From: Manasa Reddy manasa.reddy@... [vantage]
Sent: ‎04/‎11/‎2015 21:20
To: vantage@yahoogroups.com
Subject: RE: [Vantage] Financial Gurus - process issues in DMR / suppliercredits

 

1)      If you order 100 and you get 90, you get an invoice for 90 right?  Then you tell the vendor you want your other 10.  Why are you using the DMR process for this?  It is not needed at all.  It sounds more like your vendor doesn’t know what they are doing and you are cleaning up their mess….I would stop that right now!  Create a report for POs that have been shorted and keep track of it that way.  IF they send you too many invoices for the last 10, screw it don’t enter the second one and call them up and say not accepting this invoice.  If this happens way too much, you may want to have a nice long chat with this vendor….I am not saying stop using them…but the work you are doing FOR THEM is insane!!  Yes, I have had conversations with various vendors that have done this to us….tell them it is not acceptable, you may be surprised at what they will do for you (if you have not already had the conversation)

2)      Supplier Returns….don’t reject until they have done their evaluation, but use the Miscellaneous shipment to send the parts back to them.  Once they have determined what they are going to do, then you can reject through DMR….or whatever the case may be.  Use the header of the Misc Shipment to record the RMA# they give you….then you can use it to fill in the DMR later.

3)      Once you find out from the Supplier that they will credit you then you can use the resolution to get a Debit memo and tie the DMR to the shorted invoice.  But I bet you would have gotten the original invoice regardless…and maybe even paid for it…the resolution for the debit memo is just a nice way of showing you have “credit” with the vendor internally.

4)      Defective DMR parts….if the vendor rejects them…use the debit memo to short pay the invoice.  Or use the debit memo to short pay the next invoice to them….it is a nice record to have when they come back and say hey why did you short pay this invoice?!?

I hope I have answered some of these issues….but I may have brought up more questions…..

 

Manasa

 

 

From: vantage@yahoogroups.com [mailto:vantage@yahoogroups.com]
Sent: Wednesday, November 04, 2015 10:29 AM
To:
vantage@yahoogroups.com
Subject: [Vantage] Financial Gurus - process issues in DMR / supplier credits

 

 

We are having issues smooting out our processes for certain DMR / supplier credit scenarios. I've summarized below. Does anyone have advice in these areas? Willing to pay a consultant that has experience with these processes.

a.       Supplier Short Shipments – short shipments are a weekly problem with our biggest supplier. When we report short shipments to them they issue a replacement order under our same PO number. They bill us for both the short shipped items and the new order and then later on issue a credit for the short shipment. It can take weeks to get the credit. We want to use Epicor to track what we are waiting on credits for. We also have to pay the bill for the short shipment. At first we were doing this as an “unreceived” invoice line but then realized it will perpetually stay in the “Invoice/Receipt Match” screen with no way to clear it out since the item will never be received.

Our solution thus far is as follows. We are wondering if this is the best way or if there is a better alternative.

         i.      Receive the short shipped quantities as if we really did receive them

         ii.      Immediately Non-conformance/Inspection/DMR the short shipped quantities using a “Short Shipment” reason code

         iii.      Leaving the DMR open is our indicator within Epicor that we are waiting for a credit

         iv.      We then receive the items when they come in against the same PO (which is then over received). But this allows us to pay both invoices without using the “unreceived” line

         v.      When credit comes we close the DMR and initiate the supplier credit/debit memo from the DMR. However we are not confident in this because some seem to slip thru the cracks (they don’t always show up in the “Get” menu in AR Invoice Entry). We are not sure if there is a bug or we are doing something wrong.

Speaking of the “Invoice/Receipt Match” process…our AP person will use “unreceived” lines on AP invoices when she needs to pay a bill to take a discount and doesn’t want to wait for a resolution on short shipments. We thought this screen was going to be the way to track what suppliers owe us (either in goods or credits). Later we realized if they do not send us the items or decide to do the replacement order as described above the item stays stuck in this screen without the ability to “delete”. Thus it clouds our ability to use this screen to track the short shipments/credits.

b.      Supplier Returns & Replacements - We do not understand why we have to do a “Reject” in DMR in order to record a supplier return / RMA number. We want the DMR to remain open until we know the resolution to the RMA. Leaving the DMR open is an indicator we are waiting on the credit, or repair/replacement from supplier. If they are sending a replacement it would then just be an Accept from the DMR which you cannot do if you have already entered a Reject. How was the system designed to manage this process?

c.       AP Invoice Entry – “New DMR Credit Line” – this feature seems useful to tie a credit to a DMR. Is the best way to try to log  the credit in the DMR so it is “pushed” to the AP invoice screen or should we use this feature? The default search window is lacking, it only shows the DMR and action number, no part number, supplier name, or date.

d.      Defective DMR parts – we report to supplier and they reply to scrap the part and instruct us to short pay a future invoice and reference a ticket number for the incident. How do we close the DMR, post the credit, and short pay an invoice with the incident number being recorded and flowing thru each of these steps so it appears on the payment we send to the supplier? 

 

IMPORTANT NOTICE FROM API: This communication, including any attachments, contains information that may be confidential or privileged and is intended solely for the entity or individual to whom it is addressed. If you are not the intended recipient, please contact the sender immediately and delete this message. Any unauthorized disclosure, copying or distribution of this message is strictly prohibited.

IMPORTANT NOTICE FROM API: This communication, including any attachments, contains information that may be confidential or privileged and is intended solely for the entity or individual to whom it is addressed. If you are not the intended recipient, please contact the sender immediately and delete this message. Any unauthorized disclosure, copying or distribution of this message is strictly prohibited.


Posted by: Manasa Reddy <Manasa.Reddy@...>


 

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IMPORTANT NOTICE FROM API: This communication, including any attachments, contains information that may be confidential or privileged and is intended solely for the entity or individual to whom it is addressed. If you are not the intended recipient, please contact the sender immediately and delete this message. Any unauthorized disclosure, copying or distribution of this message is strictly prohibited.

IMPORTANT NOTICE FROM API: This communication, including any attachments, contains information that may be confidential or privileged and is intended solely for the entity or individual to whom it is addressed. If you are not the intended recipient, please contact the sender immediately and delete this message. Any unauthorized disclosure, copying or distribution of this message is strictly prohibited.