Purchase Returns Rating

Received goods might be rejected due to quality or delivery issues and are, therefore, returned to the vendor. Posted Purchase Returns are a strong indicator to measure the performance of individual vendors. Because this factor differs in importance in different companies, for different items, and for different reasons, the method for Purchase Returns must be weighted and rated for each monitored vendor. It is not only the number of returns in a period, even the quantity of returned items in relation to the entire received quantity must be considered.

COSMO Vendor Rating includes rating of Purchase Returns to overall vendor performance (Total Score). Relating to each Return Reason, it is possible to specify a weighting factor (Return Qty. Score). If a direct link is made between the Purchase Receipt and Purchase Return, the quality rating (Return Score) is included in the Total Score for the receipt. If a direct link cannot be made, then a separate quality rating (Return Score) is created for the Purchase Return, which is part of the Total Score for the vendor.

Return Reasons Setup

The Posted Purchase Returns are integrated as hard criterion using the Return Reasons page, accessed using Tell Me. Choose the Lightbulb that opens the Tell Me feature icon, enter Return Reasons, and then choose the related link. In the Return Qty. Score field on this page, enter the default value to be used in the return process based on the particular return reasons.

When you need to return items to a vendor, you can create a direct link from the Purchase Return line to the originating Posting Purchase Receipt as long as the related Item Ledger Entry is still open. This will include the return in the Total Score for the Purchase Receipt. For each individual return, the returned quantity in relation to the received quantity is weighted by this factor (Return Score). This score is added to the overall score in the same way as other hard criteria (i.e., Quantity Score, Return Score, Quality Score, and Appointed Time Score).

  1. Choose the Lightbulb that opens the Tell Me feature icon, enter Purchase Return Orders, and then choose the related link.
  2. Choose the New action and then enter the vendor in the Vendor Name field.
  3. On the Process menu, choose the Get Posting Document Lines to Reverse action to add the defective item(s) and create the link between the Purchase Receipt and Purchase Return.
  4. In the Document Type Filter field, choose the Posted Receipts option.
  5. Select the receipt for return and then choose the OK button.
    Notera

    Instead of using the Get Posting Document Lines to Reverse action, you can manually enter the returned item but you must select the item ledger entry of the related Purchase Receipt in the Appl.-to Item Entry field.

  6. In the Return Reason Code field, enter the reason for the return. If this field is not filled in, an error message opens during posting.
  7. Post the purchase return order.
  8. Choose the Lightbulb that opens the Tell Me feature icon, enter Calculate Vendor Rating, and then choose the related link.
  9. Filter on the vendor and then choose the OK button to run the report.
  10. Choose the Lightbulb that opens the Tell Me feature icon, enter Vendor Rating, and then choose the related link.
  11. Set the date filter to include all posted receipts and returns, filter on the vendor, and then choose the Print or Preview & Close button.
    The Vendor Rating report opens with the standard ratings entered for the Purchase Receipt as well as the ratings for the Purchase Return, which are all included in the total score for the Purchase Receipt, and thus, for the vendor.
  12. Close the report and open the Vendor Card.
  13. On the Related menu, choose Vendor Rating > Vendor Rating Entry.
    The return information and score is included in the Purchase Receipt line, which is the same as shown in the Vendor Rating report.
  14. Choose the Assigned Entries action to view the Purchase Return entries assigned to the Vendor Rating Entry. This is especially helpful when multiple Purchase Returns are linked to a Purchase Receipt.

When you are unable to create the direct link from the Purchase Receipt line to the originating Posted Purchase Receipt because the related Item Ledger Entry is not open, the return rating is included in the Total Score for the vendor, but not for the Total Score of the Purchase Receipt.

  1. Choose the Lightbulb that opens the Tell Me feature icon, enter Purchase Return Orders, and then choose the related link.
  2. Choose the New action and then enter the vendor in the Vendor Name field.
  3. In the Lines FastTab, enter the defective items.
  4. In the Return Reason Code field, enter the reason for the return. If this field is not filled in, an error message opens during posting.
  5. Post the purchase return order.
  6. Choose the Lightbulb that opens the Tell Me feature icon, enter Calculate Vendor Rating, and then choose the related link.
  7. Filter on the vendor and then choose the OK button to run the report.
  8. Choose the Lightbulb that opens the Tell Me feature icon, enter Vendor Rating, and then choose the related link.
  9. Set the date filter to include all posted receipts and returns, filter on the vendor, and then choose the Print or Preview & Close button.
    The Vendor Rating report opens with the standard ratings entered for the Purchase Receipt as well as separate ratings for the Purchase Return, which are all included in the total score for the vendor.
  10. Close the report and open the Vendor Card.
  11. On the Related menu, choose Vendor Rating > Vendor Rating Entry.
    Two lines exist: one for the Purchase Receipt and one for the Purchase Return, which is the same as shown in the Vendor Rating report.

See Also

Total Score Calculation
Weighted Average with Return Score

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