This article will deal with parts that arrive damaged due to no fault of the Vendor. We will cover what to do if something happened while the package was in shipping (by UPS, FedEx or other supplier) that has made the part unusable.
The reason why we are calling out the distinction is that, in this case, the damage claim must be submitted to the shipping company vs. the Vendor.
Once approved, the credit will come back from the shipper.
The manner in which shipping was originally charged will determine how the credit is processed. Meaning - in our example, the PO had shipping charged to the site's UPS Account. That is where the credit will show up.
The accounting team must be alerted to move the credit from the UPS account to the GL code for inventory once the credit memo processes.
In this example we have a PO that was placed for three parts, each with a quantity of two.
1. Lines 2 and 3 have an earlier Customer Promised Date than Line 1. You can see that they are both in the Received Full Status.
2. If you click on the Receipts tab, you will see that there is one receipt, and it is in Financial lock status.
This means that the PO lines match the receipt and the invoice that has been sent.
3. If you wanted to see what was received and which bin it was in, simply click on the Receiving ID hyperlink to go to the Receiving Record.
4. Click the breadcrumb to go back to the PO.
5. Line 1 is a request for two ball screws. Because of a longer lead time, the vendor/buyer/site agreed that they would take these in two shipments - the vendor would send the one they had in stock immediately, and the second one would be backordered to be shipped on 8/16.
6. One of the ball screws showed up at the site, but it was damaged in shipment and could not be used.
7. The SCS and Buyer took pictures of the damage and gathered all the needed paperwork. At this point, they reached out to the vendor (via email) to let them know that it arrived damaged.
The vendor confirmed that ATS would have to submit a damage claim to UPS (in this case) and place another PO for the replacement.
8. The buyer processed the damage claim with UPS and communicated the tracking number and details to the site.
9. The site was instructed to keep the PO open in the system until they know if they are getting a refund.
The SCS must receive the part so that the PO will not go to Grief. We first want to create a bin for just this purpose.
10. Log into the Work Module and click on the Supply Chain Role. From here, click on Bins.
11. Click on the Blue Plus sign and choose +Bin.
12. By default, the ATS location loads first. If you want a different location, please change it from the drop-down.
13. A pop-up box appears.
14. Enter a bin id that will alert you it is NOT for normal stock. We are using "UPS Damage Claims Only"
15. Click Save.
16. A confirmation message tells you that the bin has been added.
17. We are now going to receive the damaged part into inventory. Go to Inventory> Logistics> Receiving and choose NEW.
18. Enter your PO number under PO ID and click Save.
As line one is the only one left to receive, that is the only one that will show up on the receiving record. Remember that both parts have not arrived -- one is still on back order. In this receipt, you are just going to put the one that is damaged into the bin you just created. It is not actually in stock, it is just a placeholder.
19. In the lower units section, under BIN ID, enter UPS* and click the magnifying glass to bring up options.
20. Choose the "New Stock" Bin. This is the one without the -R on the end of it.
21. Click OK.
22. Change the quantity from two to one.
23. Click Post in the Header.
A paper copy of the receipt will generate. If you want to print them individually, you can do that, or you can wait and print the receiving document for everything received for the day or week by using the Receiving Report in the ATS Reporting Server.
24. As a final step, the buyer should email the information from the Damage Claim report with the tracking number to the Site Management Team, and the Accounting Team. Request to be notified when the the Damage Claim funds are paid so they can be moved over to the right General Ledger code in GEAC.
At the time that this document was written, the appropriate people in Accounting are Nick Cripe and Ried Allen.
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