This document provides instructions for processing supplier returns to debit in Openbravo ERP. The key steps are: 1. A purchase order is created with negative quantities to authorize the return of items. 2. A goods movement record is made to move items to a temporary storage location for returns. 3. A goods receipt with negative quantities records the sending of items back to the supplier. 4. The purchase invoice generated from the goods receipt creates an outstanding payment, indicating the supplier owes a debit amount.

1. Openbravo QuickStart 2
User Manual
Chapter 07 – Supplier Return
to Debit
v2.0.1
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Introduction ....................................................................................... 1
Abstract Business Process .................................................................. 2
Roles Involved .................................................................................... 2
Configuration ...................................................................................... 2
Storage Bins ...................................................................................... 2
Step-by-Step....................................................................................... 3
Return Product ................................................................................... 3
Authorization and Recording of Return ................................................ 3
Moving Items into a Temporary Location............................................. 5
Sending Back the Goods ................................................................... 5
Request Vendor Debit ......................................................................... 6
Accept Debit ...................................................................................... 6
Payment Management ........................................................................ 9
Accounting .......................................................................................... 0
Configuration ..................................................................................... 9
Posting of the Purchase Invoice ............................................................ 9
Allow Negative = Y ......................................................................... 10
Allow Negative = N ......................................................................... 10
Introduction
This workflow manages the return of goods you have purchased back to the vendor and
request of debit:
• sending back the merchandise
• requesting debit from the vendor

2. Abstract Business Process
The abstract supplier return to debit process is defined by the following diagram:
The following sub-processes form it:
• Return a product
• Request Vendor Debit
• Accept Debit
Roles Involved
The following roles are involved with this process:
• Finance - this role authorizes debits of returns
• Material Management - send back the items in questions
Configuration
For this process to be used effectively, we recommend creating a separate storage bin for
holding received items that need to be returned.
Storage Bins
Please see Wall to Wall Accuracy Count chapter for more information on how to setup
warehouses and storage bins. We recommend creating an additional one for items to be
returned to the vendor:

3. Step-by-Step
Return Product
Returning a product in Openbravo ERP requires three steps:
1. Authorization and recording of return using a Purchase Order with negative
quantities
2. Moving items into a temporary location inside the warehouse using Goods
Movement
3. Recording the actual sending of the goods using the Goods Receipt with negative
quantities
Authorization and Recording of Return
The Finance role should be used.
To record and/or issue authorization for the return of materials, use the Procurement
Management || Transactions || Purchase Order window, creating a new one and
entering details of the vendor and the specific return:

4. Fields to note:
• Description - enter the reason for return of the merchandise to the vendor
• Order Reference - order vendor's order or invoice number here for later reference
• Business Partner - select the vendor
Then, there are a few options available in order to select the products that are being
returned:
• manual entry inside [Lines] - add product by product and the corresponding
negative quantities
• Copy from Order button - using this button you can directly enter an order number
(in this case, this would probably be the original order number that was used to
order the goods in the first place) and this process will automatically copy all
products from that order into the current one being used as a return. In this case, a
manual correction is required making all quantities negative inside [Lines]
Note: Make sure negative quantities are used for all products being returned and listed
inside [Lines] !

5. Moving Items into a Temporary Location
The Material Management role should be used.
If a temporary storage location for returning items is used (as described in the
Configuration section of this chapter) use the Warehouse Management ||
Transactions || Goods Movement document to move items to be returned into that
temporary location. This way, they are clearly separated from the rest and can await their
shipment back to the vendor there.
For more information on the Goods Movement document please see the Wall to Wall
Accuracy Physical Count chapter of the user manual.
For example:
Sending Back the Goods
The Material Management role should be used.
To record the sending back of goods and have the inventory updated, use the
Procurement Management || Transactions || Goods Receipt document, again with
negative quantities. For more information on how to enter this document, see the Procure
to Pay chapter of the user manual.
An even easier way of generating the Goods Receipt document is to use the Procurement
Management || Transactions || Pending Goods Receipt form, finding the return and

6. processing it directly there:
Request Vendor Debit
This process is not directly supported by the Openbravo ERP. The options offered are:
1. Request vendor debit through an external document (word document, phone call,
etc)
2. Use the Purchase Order generated above to be sent to the vendor in order to
request the debit from the vendor. If this flow is used we advise the use of
Description fields in [Header] and [Lines] to enter additional information to describe
the reason of returning merchandise.
Accept Debit
The Finance role should be used.
In order to register the vendor debit the Purchase Invoice document must be used. To
create it two options are available:
• Automatically using the Generate Invoice from Receipt button inside the Goods
Receipt window
• Entering a header of the Purchase Invoice manually and then using the Create
Lines From button found inside of it
The first method is easier and will be shown here. For more information on the second one,
please see the regular purchase workflow found inside the Procure to Pay chapter of the
user manual.
Use the Procurement Management || Transactions || Goods Receipt window and find
the receipt that was created previously to record the shipment back to the vendor. See the
Generate Invoice from Receipt button:

7. Click the button and confirm the dialog:
Note that you can also change the price list here used for the pricing of the returned
merchandise to be debited. After confirming the dialog, the success message should be
shown, indicating the number of the invoice that has been generated:
Navigate to the Procurement Management || Transactions || Purchase Invoice and
find the invoice that has been generated. Make any corrections necessary and complete it
since it will be left in Draft status otherwise:

8. Notice the payment plan that has been generated by the Purchase Invoice inside the
[Payment Plan]:
This payment plan will be outstanding, indicating that the vendor now owes you money.

9. Payment Management
The new outstanding payment can be managed in several ways. Depending on the status
and the amount of the original invoice, a few scenarios are possible:
1. The original invoice has already been paid: in this case, no additional action is
required. The new outstanding debt by your vendor can be collected using a
negative Make Payment document or can be deducted from next payment to the
vendor including this last invoice as part of the details to be paid.
2. The original invoice has not been paid yet: within this case, both invoices can
be added in next Make Payment document so that the debt is settled as part of
the payment details.
Accounting
Configuration
The Company Admin role should be used.
Apart from the regular configuration of accounting for business partner and products, there
is another setting that affects the posting of negative amounts. Navigate to the Financial
Management || Accounting || Setup || Accounting Schema and select the schema
used. Find the Allow Negative checkbox:
If this is NOT CHECKED, negative amounts will be posted as positive but will switch the
credit/debit side. If this box IS CHECKED, then negative amounts will be posted as negative
to their originally configured credit/debit side.
Posting of the Purchase Invoice
The Finance role should be used.

10. Allow Negative = Y
When the purchase invoice is posted with the Allow Negative setting of the accounting
schema switched ON, the posting to the general ledger is done this way:
Allow Negative = N
When the purchase invoice is posted with the Allow Negative setting of the accounting
schema switched OFF, the posting to the general ledger is done this way: