Purchasing Home

601.03

Northern Arizona University
Purchasing Policy and Procedure

Return of Merchandise


POLICY:

RESPONSIBILITY OF ORDERING DEPARTMENT AND Purchasing Services

Departments desiring to return merchandise to vendors must first contact Purchasing Services (in writing) explaining the reason for the return and forward a copy to Accounts Payable. Purchasing Services will secure permission from the vendor and will arrange for the material to be picked up and returned.

RESTOCKING CHARGE

If the incorrect material delivery is due to an ordering error, the vendor is under no obligation to accept the return and may impose a restocking charge. The buyer will negotiate to reduce this charge whenever possible. This restocking charge will be the responsibility of the requesting department.

CREDIT MEMOS

Departments receiving credit memos for the return of merchandise should forward them to Accounts Payable with complete information including purchase order number. Accounts Payable will use this credit memo on the next payment to the vendor and credit the original area/orgn. If a credit memo is not used within a reasonable time, Accounts Payable will request a cash refund from the vendor and credit the original area/orgn. (Note: Some companies will not give cash refunds.)

EXCEPTION

This policy may not apply to overshipment of merchandise or duplicate items received from vendors. (See section 601.02.)

Return of merchandise which was purchased against a departmental purchase order (PD) is the responsibility of the ordering department.

PROCEDURE:

A Return Request Form must be completed in order to return material through the Shipping and Receiving Department. The forms can be obtained through either the Shipping and Receiving department or Purchasing Services.

  1. Obtain authorization from the vendor to return the merchandise. Generally the vendor will issue a Return Material Authorization number (RMA). In some cases the vendor will send out labels which must be affixed to the package or return.


  2. Fill out the following areas on the Return Request Form (RRF).


    1. Date - current date.


    2. Originator/phone - this should be an individual who is familiar with the transaction.


    3. Area/Orgn/SO (area/organization/sub-organization) - provide this information if freight charges are to be paid by department.


    4. Material Location - provide the building and room number where the material is to be picked up and include the number of packages being returned. THE RRF NUMBER MUST BE CLEARLY MARKED ON EACH PACKAGE.


    5. Doc ID/line # - the Advantage document and line number for the original purchase.


    6. Reason for Return - short explanation of why material is being returned.


    7. Authorized Signature - an authorized representative for the department must sign the RRF.


    8. Return to - the vendor, complete address and contact person must be provided.


    9. Return Material Authorization (RMA) as evidence that the return was authorized.


    10. Check One - one of these must be checked. If "UPS call tag" is checked, the RRF number must be referenced on the call tag. All "Collect" returns must have prior approval of vendor.


    11. Special Instructions - if "other" is marked in item 10, use this area to indicate how return is to be made. This can also be used to supply additional information pertaining to the return.
  3. The requesting department must keep the pink copy of the form to identify material for pick- up. After pick-up, this copy should be retained for departmental records.


  4. The white copy of the completed RRF is sent to the Shipping and Receiving Department. Upon receipt of the completed RRF, Shipping and Receiving schedules the pick-up and return of the merchandise. Copies of the RRF are to be forwarded to Purchasing and Accounts Payable.