Vendor Returns

Use Operations > Returns > Vendor Returns to track goods you send back to a supplier, from the first claim through shipment, the vendor’s credit or replacement, and close-out. Customer settlement stays on the customer return; this screen is the supplier side.

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When to Use Vendor Returns

• A customer return was inspected and the item should go back to the supplier.
• A warranty claim needs vendor tracking before credit or replacement is issued.
• A defective or wrong item should leave normal sellable stock and stay visible until the vendor resolves it.
• A recall, overage or defect found after the original purchase order closed needs a standalone claim.
• Purchasing or accounting needs a clear link between the returned item, vendor, expected credit, and final outcome.

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Open the Page and Check Access

• Open Operations, then Returns, then Vendor Returns, or search for Vendor Returns or a vendor return number in the command palette.
• From a customer return, the Create Vendor Return action and each return’s Source RMA link take you between the two records.
• You need the View Returns permission to open the list and each vendor return. Every action that changes a vendor return needs Process Returns: Ship to Vendor, Record Credit, Receive Replacement, Close, Purchase Label, Email Vendor, Vendor Denied, Reverse Credit, Cancel, Delete Draft and creating a vendor return. Without it the button stays visible but disabled, and hovering it says which permission to ask for. Print Vendor Return needs only View Returns.

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The Vendor Returns List

• Header: the title, the total count and New Vendor Return (Process Returns).
• Tiles: Open (everything not closed or cancelled), Awaiting Shipment (pending), Out to Vendor (shipped plus delivered to the vendor) and Credit Issued (credited and awaiting close). Select a tile other than Open to jump to that tab.
• Tabs: All, Pending, Shipped, At Vendor, Credit Issued, Replacement, Closed and Cancelled, each with a count. An Attention tab appears only when a record fits none of the others.
• Search: Search VR #, vendor RA #, or vendor name…
• Filters: Created date and Vendor, with active filters shown as chips you can remove. Saved views keep a filter, sort and column layout for later, and the Columns menu shows, hides and reorders columns.
• Columns: VR # (with the vendor’s RA number under it), Vendor, Type, Source RMA (Standalone when there is none), Items, Vendor Credit, Tracking (a link when the carrier supplies one), Status and Created. VR #, Vendor, Status and Created sort.
• Select a row to open the vendor return.

When the header is set to one location and that hides every vendor return, a notice says how many are hidden and offers to switch to all locations. An empty list reads No vendor returns: “Vendor returns are created from RMA dispositions, PO damaged receipts, or the New Vendor Return button.” If the list cannot load, a red notice reads Failed to load vendor returns. followed by the reason.

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Status Flow

• Pending: the claim is open and nothing has shipped. Units for the claim are set aside at the dock.
• Shipped to Vendor: tracking and carrier details were recorded and the goods left inventory.
• At Vendor: the carrier reports the goods delivered to the vendor. A reversed credit also returns the record here.
• Credit Issued: the vendor issued a credit for the return.
• Replacement Received: replacement stock was received back into inventory.
• Vendor Denied: the vendor refused a warranty claim and the goods came back.
• Closed: no more action is expected on the vendor return.
• Cancelled: the claim was stopped. A deleted draft no longer appears in the list.

The progress stepper on each vendor return reads Created, Shipped to Vendor, At Vendor, then Credit Issued or Replacement Received, then Closed. A denied or cancelled return shows a marker instead: “The vendor refused the return. Goods were restocked and the shipment GL entry reversed.”

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Create a Vendor Return from an RMA

1. Open the customer RMA from Operations > Returns > Customer Returns.
2. Receive the returned item if it has arrived.
3. Choose Send to Vendor as the item disposition.
4. Click Create Vendor Return on the RMA detail page.
5. Select the vendor.
6. Add the vendor RMA or RA number if the supplier gave you one.
7. Choose the return type, such as warranty, defective, or wrong item.
8. Add notes that explain what the vendor should review.
9. Create the vendor return.

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Create a Standalone Vendor Return

Use this for recalls, overage, or defects discovered after the original purchase order closed.

1. Open Operations > Returns > Vendor Returns and select New Vendor Return.
2. In Create Vendor Return, search for the Vendor by name, account number or email.
3. Choose the Return Type: Warranty, Defective at Receipt, Recall, Overage (extra units shipped), Wrong Item Shipped, Customer Damage, Expired, or End of Life / Discontinued.
4. Add the Vendor RMA / RA Number if you have one, and any Notes.
5. Select Create Vendor Return. The new record opens, and the confirmation reads Vendor return created.

Items are added after the vendor return exists. A vendor return can also start from a purchase order’s damaged receipt. A vendor return with no lines cannot ship: delete the draft, or open the claim from an RMA.

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Review the Vendor Return

Selecting a row opens the vendor return page. It keeps everything for the claim together.

• Vendor card: the supplier and the contact email on file.
• Summary: a timeline of Created, Shipped to Vendor, Received by Vendor, Credit Issued, Replacement Received and Closed with their dates, the tracking number and label, and a Financials block with Line items, Total quantity, Outbound label cost and Vendor credit.
• Items: Product, Qty, Unit Cost, Disposition and Credit for each line, with the replacement product when one is expected. With no lines it reads “No line items yet. Items are added from the customer-RMA disposition, the PO damaged-receipt path, or by editing this vendor return.”
• Linked Documents: the Customer RMA, Original order and Customer account the claim came from, and any vendor credit with its status. A standalone claim reads “No linked documents.” Vendor credits are applied against vendor bills from the payables screens.
• Warranty Trail: the source return, the vendor return, shipment, delivery, denial or credit, and close in one sequence.

If you open a link to a vendor return that belongs to another company you work in, Arcus switches to that company and says Switched to (company name) to open this vendor return. A record no company of yours holds shows Vendor return not found.

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Ship Items to the Vendor

1. Open a vendor return with Pending status.
2. Click Ship to Vendor.
3. Enter the tracking number.
4. Select the carrier: UPS, FedEx, USPS or Other.
5. Choose Ship From Location (deducts inventory) only when you need to override where the goods leave from. By default Arcus takes the goods from the location where the product’s units are set aside for this claim. The picker lists your Holding locations.
6. Click Mark Shipped. The confirmation reads Marked as shipped to vendor.

If the units are still in quarantine from a purchase receipt, the refusal names them and says to resolve them in the warehouse quarantine view as Return to vendor, which sets them aside for this claim; ship afterward. If nothing can be set aside for this claim, the message tells you to cancel it or delete the draft. A drop-ship return has no Ship step at all: the customer sends the goods straight to the vendor, so you record the vendor’s credit instead.

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Buy a Prepaid Label

To buy the outbound label from Arcus instead, open More actions and select Purchase Label while the return is Pending.

1. Enter the parcel Length (in), Width (in), Height (in) and Weight (lbs). The rate button stays disabled until the sizes are valid.
2. Select the rates button, then pick a carrier service. Buy (carrier) label stays disabled until you choose one, and Refresh rates fetches new quotes.
3. Buy the label. The confirmation reads Vendor return label purchased: with the tracking number, and the label link and Outbound label cost appear in the Summary.

The label needs a return address on the vendor’s Vendor tab, or a default address in Settings > Shipping & Fulfillment > Returns, and a ship-from address for your warehouse. The messages say when either is missing. A vendor return that already has a tracking number cannot buy a second label.

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Record a Vendor Credit

1. Open a vendor return that has been shipped or delivered to the vendor.
2. Click Record Credit.
3. Enter the credit amount from the supplier. It must be greater than zero.
4. Click Record Credit. The confirmation reads Vendor credit recorded.
5. Review the timeline and status after the credit is saved.

Recording the credit posts it to your payables: it reduces what you owe the vendor and clears the Vendor Returns Receivable. The credit then sits as an open vendor credit that you apply to a vendor bill. A return whose credit was reversed cannot take a second credit yet; the message says nothing was recorded.

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Receive a Vendor Replacement

1. Open a vendor return that has been shipped or delivered to the vendor.
2. Click Receive Replacement.
3. Select the receiving location.
4. Click Receive into Inventory. The confirmation reads Replacement received into inventory.
5. Confirm the replacement shows in inventory at the receiving location.

If you do not pick a location the message reads Select a receiving location. A replacement quantity above what the line authorized is refused.

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When the Vendor Denies the Claim

Select More actions, then Vendor Denied on a shipped or delivered vendor return. In Vendor Denied Warranty, choose the Restock Location where the goods will land and add a Reason (optional). Arcus restocks the goods, reverses the shipment entry in your books, and shows Vendor denial recorded; inventory restocked. The restock location must be a non-sellable location such as a holding or claim location; a sellable or inactive location is refused so denied goods are not put on sale by mistake. Close the record afterward.

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Reverse a Credit

Select More actions, then Reverse Credit on a vendor return in Credit Issued. The dialog lists what will happen: the vendor credit is voided, which only works if it has not been applied to any vendor bill, and a reversing journal entry is posted. The vendor return goes back to At Vendor. Reverse the credit before cancelling a credited vendor return.

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Email the Vendor and Print the PDF

• Email Vendor (More actions) sends the vendor return PDF with a summary email to the vendor’s email on file. It is available once the return is no longer pending, and not when it is cancelled. If no email is on file the dialog warns that the send will be skipped; add an email on the vendor account first. When no recipient is given, Arcus uses the vendor’s email or primary contact. The confirmations read Vendor return email sent or Email skipped: with the reason. Shipping a vendor return also sends the email automatically unless your email settings turn it off.
• Print Vendor Return opens the PDF in a new tab. It is always available.

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Close, Cancel or Delete

• Close appears once the vendor return is Credit Issued or Replacement Received, after the vendor has resolved it and your team has confirmed no follow-up remains. Closed returns stay in history with the action buttons removed. If something is still unresolved, such as units left staged or a variance not booked, Arcus refuses and lists what is left. The confirmation reads Vendor return closed.
• Cancel Vendor Return is in More actions for a pending, shipped, delivered or denied return. The dialog lists exactly what it reverses: a pending cancel returns the staged units to sellable stock; a shipped cancel posts a reversing journal entry for the shipment and lists the posted entries; a denied return has no accounting effect. Goods coming back from the vendor are a separate receive event, so nothing is restocked automatically. A vendor return holding an issued credit cannot be cancelled until you reverse the credit, and a finished return cannot be cancelled: use an inventory adjustment or manual journal entry instead. The confirmation reads Vendor return cancelled.
• Delete Draft permanently removes a pending vendor return that never shipped. No accounting was posted. If the draft still holds staged units, Arcus refuses and says what to do instead: cancel it so the units go back where they were staged, or ship it when units were released to it from quarantine. The confirmation reads Vendor return deleted.

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What Arcus Tracks

• The supplier, vendor RMA number, return type, notes, and source customer RMA.
• Which items and quantities are being sent back.
• Shipment tracking, carrier information and any outbound label cost.
• Whether the vendor resolved the return with credit, a replacement or a denial.
• Timeline events that help purchasing, warehouse, and accounting see the current state.
• Every action in the activity log, with the list and detail pages updating live for other people viewing them.

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Common Blocks

• No vendor returns are listed: create one from a customer RMA after an item is dispositioned for vendor return, or select New Vendor Return.
• Create Vendor Return is missing on the RMA: at least one returned item must have the Send to Vendor disposition first.
• Vendor search does not find the supplier: confirm the supplier exists as a vendor account and is active.
• A button is disabled: your role needs Process Returns, or the return is in a status where the action does not apply. A refusal names the current status in plain words, for example “claim open, not shipped” or “delivered to the vendor”.
• Ship to Vendor is unavailable or refused: only pending vendor returns can be shipped, and the units must be set aside for this claim.
• Record Credit or Receive Replacement is unavailable: record shipment first. Drop-ship returns are the exception for credit.
• Replacement cannot be received: choose a receiving location before submitting.
• Close is unavailable: resolve the vendor return with a credit or replacement before closing it.
• Status cannot be edited directly: a vendor return’s status changes only through its actions: Ship, Record credit, Receive replacement, Vendor denied, Reverse credit, Close, Cancel or Delete draft.

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