Jump Start Your Supplier Credits Process
PeopleSoft’s Return to Vendor/Supplier (RTV)
Will Improve Your Supplier Credits Process
As an Accounts Payable specialist for over 15 years, I clearly see the process of managing Supplier Credits as having a big payoff. But, I often see the process of managing Supplier Credits as very time consuming and it often gets relegated to the back burner. The trouble is that starting the audit trail to properly obtain the credits can be tough. Often there is a considerable time gap between Vendor/Supplier Returns and trying to obtain the Supplier Credits. Ultimately putting the pieces of the puzzle back together always gets off to a very slow start. Compounding the problem is that you often have to get the credit amounts exactly correct otherwise the credit(s) may get rejected by your Supplier which then can further cause problems.
In terms of rating transaction complexity, I can certainly rate that some transactions are more complex and more time consuming to perform than others, specifically managing Return to Vendor (RTV) and Supplier Credits. However with good procedures, good communication between accounts payable and purchasing, consistent follow-up and good communication with Suppliers, managing the entire RTV to Supplier Credit process can be much easier and much more effective if you have a good audit trail.
PeopleSoft’s Return To Vendor/Supplier (RTV) application is a great tool to start your audit trail. You have several places to initiate RTV’s and this is where PeopleSoft’s RTV functionality can help as a great foundation for internal communication between Requesters, Purchasing and Accounts Payable. Additionally the RTV process can be initiated from several different pages to tailor fit different job roles with-in your organization:
- For ePro Requestors: From the eProcurement Manage Requisitions page, select “Process Return” to open the Return to Vendor (Supplier) page as illustrated in the 2 screen shots shown below.
- For Buyers, Power Users and Receiving Personnel: Initiate the RTV process directly from the dedicated Return to Vendor menus.
- Also as part of the Receiving process: You can reject unwanted quantities and initiate the credit process from the Receiving page.
Once the RTV transactions have been initiated on the Purchasing/Receiving side, the RTV information can be automatically staged to the AP Voucher tables for review, approval, and submission to your supplier for credit(s). Ultimately the RTV process initiates your internal communication and from there the audit trail will now have a solid start and your ability to capture and effectively work with your Suppliers and manage your Supplier Credits will be greatly improved.
In conclusion, if your organization is not yet using PeopleSoft’s RTV feature, now is a good time to review how your organization is handling Supplier Credits and analyze how you can leverage PeopleSoft’s RTV functionality to make sure that you are capturing all your credits. Lastly, I can personally attest that by putting the RTV process in place you will greatly improve your ability to prevent Supplier Credits from falling through the cracks. Now is the time to get started if you have not already.
Thank you for reading,
Steven J Brenner
Senior Principal Consultant
MIPRO Consulting
steven.brenner@miproconsulting.com
