> ## Documentation Index
> Fetch the complete documentation index at: https://docs.arcuserp.com/llms.txt
> Use this file to discover all available pages before exploring further.
# Vendor Returns
> Use Vendor Returns when returned or defective stock needs to go back to a supplier for credit, warranty review, or replacement inventory.
## 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.
* Purchasing or accounting needs a clear link between the returned item, vendor, expected credit, and final outcome.
**Do not use Vendor Returns for ordinary customer refunds**
Customer settlement still happens on the RMA. Vendor Returns are for the supplier-side
follow-up after the returned stock should no longer be treated as normal sellable inventory.
## Status Flow
* **Pending**: the vendor return exists, but shipment has not been recorded.
* **Shipped to Vendor**: tracking and carrier details were recorded.
* **At Vendor**: the vendor has received the goods when that state is captured in your workflow.
* **Credit Issued**: the vendor issued a credit for the return.
* **Replacement Received**: replacement stock was received back into inventory.
* **Closed**: no more action is expected on the vendor return.
## Create a Vendor Return from an RMA
1. Open the customer RMA from **Returns**.
2. Receive the returned item if it has arrived.
3. Choose **Vendor Return** as the item disposition during inspection.
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.
**Keep the vendor reference visible**
Enter the supplier's RMA or RA number as soon as you have it. That makes search,
email follow-up, and AP credit matching much easier later.
## Review the Detail Panel
Selecting a vendor return opens the detail panel. Use it to confirm the vendor,
source customer RMA, item quantity, unit cost, current status, tracking, notes,
and timeline before taking the next action.
## 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.
5. Choose a ship-from location only when Arcus should deduct inventory from that location.
6. Click **Mark Shipped**.
**Inventory deduction depends on the ship-from location**
If you leave Ship From Location blank, the vendor return is marked shipped without
deducting stock from a holding location. Select a holding location when the quantity
should leave that location's inventory.
## Record a Vendor Credit
1. Open a vendor return that has been shipped or received by the vendor.
2. Click **Record Credit**.
3. Enter the credit amount from the supplier.
4. Click **Record Credit**.
5. Review the timeline and status after the credit is saved.
## Receive a Vendor Replacement
1. Open a vendor return that has been shipped or received by the vendor.
2. Click **Receive Replacement**.
3. Select the receiving location.
4. Click **Receive into Inventory**.
5. Confirm the replacement shows in inventory at the receiving location.
## Close the Vendor Return
Close a vendor return after the vendor has issued the credit or replacement and your
team has confirmed there is no remaining follow-up. Closed returns stay available in
history, but the active action buttons are removed.
## 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 and carrier information.
* Whether the vendor resolved the return with credit or replacement inventory.
* Timeline events that help purchasing, warehouse, and accounting see the current state.
## Common Blocks
* **No vendor returns are listed**: create one from a customer RMA after an item is dispositioned for vendor return.
* **Create Vendor Return is missing on the RMA**: at least one returned item must have the Vendor Return disposition first.
* **Vendor search does not find the supplier**: confirm the supplier exists as a vendor account and is active.
* **Ship to Vendor is unavailable**: only pending vendor returns can be marked shipped.
* **Record Credit is unavailable**: record shipment first, then enter the supplier credit.
* **Receive Replacement is unavailable**: record shipment first, then receive the replacement into a location.
* **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.
## Related Articles
Create RMAs, receive returned items, inspect condition, choose disposition, and close customer returns.
Follow the full PO, receipt, vendor bill, and payment workflow.
Record vendor bills, approve them, post them, and track AP aging.
Track stock, locations, reorder points, and inventory movement history.