Your supplier sent you stock against a consigned agreement. You transferred at the stock to owned and generated a consumption advice. An invoice was raised by the supplier and the payment made. A few days after using some of the quantities of the stock, you realized that some of the stock sent by the supplier is not of suitable quality and you need to send the stock back.
What is the process of returning the material?
A. You have to cancel the invoice and send the material back without changing the ownership.
B. Return the material and create a debit memo for the supplier.
C. You cannot return consigned items that are invoiced and paid. Treat the material as scrap.
D. You have to transfer the ownership of item and perform the return transaction.
|
Download Printable PDF. VALID exam to help you PASS. |
 |
B.
BELOW EXTRACT FROM DOCS.ORACLE
Material Consumed and Consumption Advice Generated
The material ownership has changed from supplier to buyer, and the consumption advice has been created. Since, the consumption advice has communicated the detail of ownership change to the supplier, you need to return the material to supplier as owned rather than consigned inventory.
Since the ownership is with the buyer, when the return to supplier transaction is created, a debit memo is generated if the invoice has been created based on the consumption advice.
If the material is lot or serial controlled, you can provide the lot and serial numbers while returning. Once the supplier receives the material, they process a credit note against the invoice for the consignment order line.
The correct answer is D