Returning Material
to Suppliers from MRB
Scope
This procedure covers returning material to
suppliers that has been dispositioned by MRB.
Policy
Material is
handled, stored, packaged, shipped, and delivered according to company and
regulatory guidelines.
Inventory transactions
are recorded in the database on the same day the material is moved.
An Inspection
Tag [../FND/@FOR0711Y]
-
is required for all material
moved to quality inspection or receiving inspection
-
describes the nature of any
material defects or discrepancies
-
indicates the inspection and
test status
-
indicates the originating
discrete job/repetitive schedule, subinventory, or expense number
-
remains attached to the
material for identification purposes
A purchase receipt traveler
-
is required for each incoming
purchased item (or lot), including customer-supplied material and outside
processing assemblies
-
indicates the purchase order
number
-
indicates the destination of
incoming purchased material
-
indicates the transfer-from
location of incoming purchased material
-
remains attached to the
material for identification purposes
Discrepant material
is placed in a clearly labeled and restricted bin or area.
A Discrepant
Material Report (DMR) [../FND/@FOR0030Y] is required for all material that
fails inspection.
A Shipping Authorization
form is required to move MRB material to the shipping department for
-
return to the original
supplier
-
consignment to a rework
supplier
All material returns to
suppliers are authorized by the supplier.
Responsibility
The Receiving Inspector is responsible for
-
maintaining receiving
inspection documentation
-
moving inspected material out
of MRB
The Buyer is responsible for
-
obtaining the supplier's
authorization to return purchased material
-
reporting purchased material
discrepancies to suppliers
-
generating and maintaining
purchase orders for outside processing rework suppliers
The Shipping Clerk is responsible for
verifying all material moved to the shipping department.
Distribution
Buyer*
Receiving Inspector*
Shipping Clerk*
Ownership
The Director of Quality [list@yourcompany.com?Subject=PRO1202Y]
is responsible for ensuring that this document is necessary and that it
reflects actual practice.
Activity
Preface
This activity is initiated by the receipt of
a completed Discrepant Material Report (DMR) indicating MRB material should be
returned to the supplier.
This activity only pertains to purchased
material rejected from Receiving Inspection.
A DMR is prepared when material fails
receiving inspection. At that time, a copy of the DMR is attached to the
material and the original DMR is filed in the MRB suspense file. During the
daily MRB meeting, the original DMR is then updated to reflect the MRB's
disposition decision.
Prior
Activity
Material
Review Board (MRB) [../FND/@PRO1198Y]
Receiving
Inspector
1. Request
supplier authorization to return the material.
-
Forward the original DMR to
the Buyer.
Forward the DMR that you received from the
Quality Manager at the conclusion of the daily MRB meeting.
You may want to contact the Buyer to discuss
the return to supplier.
The Inspection Tag, purchase receipt
traveler, and one copy of the DMR should remain attached to the material.
Buyer
2. Obtain
the supplier's authorization to return the material.
-
Contact the supplier to negotiate
the material return to the supplier.
-
Initial the DMR.
Return to supplier authorized
-
Obtain an authorization
number from the supplier.
-
Record the authorization
number on the DMR.
Return to supplier denied
-
Indicate on the DMR that the
return to supplier has been denied.
-
Change the disposition on the
DMR to "scrap."
If the return to supplier is
authorized, goto task #3. Otherwise, goto task #4.
3. Complete
a Shipping Authorization.
-
Prepare a Shipping
Authorization form.
Use the DMR as the source document.
-
Record the DMR number and the
supplier's authorization number on the Shipping Authorization.
4. Notify
the Receiving Inspector of the return to supplier authorization status.
Return to supplier authorized
-
File a copy of the DMR in the
supplier file.
-
Forward the Shipping
Authorization and the DMR to the Receiving Inspector.
Return to supplier denied
-
Return the DMR to the
Receiving Inspector.
If the supplier authorized the return,
goto task #5. Otherwise, end of activity; goto Moving Material from MRB to the Scrap Bin
[../FND/@PRO1201Y].
Receiving
Inspector
5. Update
inventory.
Oracle
Purchasing
N > Receiving > Corrections
B > Find
Receiving Corrections
-
Check your data entry and
correct any errors before committing the transaction.
-
Sign the Shipping Authorization.
6. File
the inspection documentation.
-
File one copy of the DMR and
one copy of the Inspection Tag in the inspection history file, sequenced by
date within item identifier.
7. Distribute
the DMR.
-
Forward a copy of the DMR to
the accounts payable department.
-
Forward a copy of the DMR to
the Material Control Coordinator.
8. Forward
the material to Shipping.
-
Remove the DMR, purchase
receipt traveler, and Inspection Tag from the material.
-
Discard the Inspection Tag.
-
Attach the DMR and purchase
receipt traveler to one copy of the Shipping Authorization form.
-
File the copy of the Shipping
Authorization in the daily issues file, sequenced by document number within
date.
-
Attach the original Shipping
Authorization to the material.
Shipping
Clerk
9. Acknowledge
the material transfer to Shipping.
-
Verify that the material
moved to the shipping department agrees with the information on the Shipping
Authorization.
-
Resolve any discrepancies
with the Receiving Inspector.
-
Record any corrections on the
Shipping Authorization.
Do not sign the Shipping Authorization until
the material is actually shipped.
-
Return a copy of the Shipping
Authorization to the Receiving Inspector.
-
Retain the original Shipping
Authorization with the material.
Receiving
Inspector
10. Verify
the material transfer to Shipping.
-
Remove the Shipping
Authorization from the daily issues file.
-
Compare the acknowledgment
copy of the Shipping Authorization with the file copy.
-
Record any corrections on the
Shipping Authorization.
-
Determine whether an inventory
transaction is required to correct errors.
If a correcting inventory transaction
is required, goto task #11. Otherwise, goto task #12.
11. Update
inventory.
When a greater quantity needs to be
returned
Oracle
Purchasing
N > Receiving > Corrections
B > Find
Receiving Corrections
For all other corrections
Oracle
Purchasing
N > Receiving > Receipts
Find Expected Receipts
-
Check your data entry and
correct any errors before committing the transaction.
-
Initial the Shipping
Authorization to indicate that the correction has been made.
12. File
the inventory control documentation.
-
Attach the file copy of the
Shipping Authorization to the acknowledgment copy.
-
File these documents in the
daily issues file, sequenced by document number within date.
End of activity.
Goto Miscellaneous
Shipments [../FND/@PRO1088Y].
Effective: mm/dd/yy
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