Subcontract PO RTV's

    Does anyone have a definitive process that works for returning subcontract items (or service to items) via RTV where the failure was discovered later on in the internal manufacturing process, well after receipt, and is PID based?

    Thanks,

    Dan Rotermund

    This gets complicated because there are a lot of variations.  However, I'm quite confident that you cannot the RTV process since, for subcontracting, what you purchased was a service and not a physical thing.  Thus, there is not a phyical item that was purchased that you are trying to return.  There are ways to deal with this, but the procedure that you would need to follow would depend on a number of criteria including:

    • Has the PO receipt been already matched and paid?

    • Was this the final operation of the PID? (you did say later in the manufacturing process, but did not specify if that later manufacturing operation was on the same PID or if the subcontracted operation was on a subassembly that was used in a later PID)

    • Is the PID still open?

    • What are you expecting the Supplier to do?

      • Rework the item so that it is correct?

      • Credit you for the cost of the service?

      • Credit you for the cosf of the service plus some additional amount for raw material that they have spoiled?

    So, the scope of your question is probably one that cannot be fully addressed within the context of posting on this board.  I would say that there is "definitive process" defined in PeopleSoft for this type of transaction.

    I partially take back what I said.  In going through some notes from a prior company where I worked, I see that it IS possible to use the RTV process.  We had chosen not use it there because of some of the complications that I noted below.  So, it's possible, but depending on your particular situation, it may or may not be applicable.  I'll still to my comment that it's likely too complicated to fully address in a web posting.

    Thanks, Streve.

    I know the situation is as clear as mud and there are more than a few possible scenarios to take into consideration.

    We will keep digging.

    Regards,

    Dan

     

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