The quick answer
Go to Transactions > Purchases > Enter Vendor Return Authorizations, choose the Vendor, add each item with its Quantity and Inventory Location on the Items subtab, and click Save. Nothing is copied from an order, so you enter every line yourself. Choose Pending Approval if the return still needs approval, or Pending Return if you are allowed to approve it and want it ready to ship.
This example returns 40 Cat6 Patch Cable 2 m to Severn Cable Supply after they failed a continuity test. The company, user, vendor, item, warehouse and return number in the screenshots are fictional example data.
Before you start
You need the Vendor Return Authorizations feature turned on and a role that can create vendor return authorizations. To ship the return on an item fulfillment from Ship Vendor Returns, Advanced Shipping has to be enabled as well. Without it the later statuses and screens differ. This example assumes a OneWorld account with Multi-Location Inventory, where the vendor is available to the Example Supply UK subsidiary. Choosing Pending Return skips the approval step, so use it only if your role and your company's process let you approve returns. The default status, and whether approval is used at all, depend on your accounting preferences and role.
Entering a return this way is useful when the purchase order is hard to find or the goods came in on several receipts. The return is not linked to a purchase order or vendor bill, so it does not give you the receipt-based checks and audit trail of a return created from one. Do not assume NetSuite has confirmed that you received the item from that vendor or that the quantity was ever bought. Check the receipt history and the vendor's agreement yourself. The authorization does not change stock or what you owe the vendor. Stock leaves when the item fulfillment for the return is saved, and the amount owed changes when the vendor credit or refund is entered.
01 · Open a blank vendor return authorization
Go to Transactions > Purchases > Enter Vendor Return Authorizations. Reference No. says To Be Generated, Status is Pending Approval, and the Vendor field is empty. There is no Created From, because no order is behind this return.
02 · Choose the vendor
In Vendor, choose Severn Cable Supply. NetSuite fills in the Subsidiary (Example Supply UK) and the Currency (British Pound) from the vendor. In a OneWorld account the subsidiary controls which vendors are available, and a vendor shared with several subsidiaries can be available for more than one of them.
03 · Add the item that is going back
On the Expenses & Items tab, open the Items subtab and choose Cat6 Patch Cable 2 m in Item. In this example the Vendor Name, Description, Units and Rate (3.50) fill in from the item record. What fills in depends on your item setup and form. Enter 40 in Quantity, choose Reading Warehouse in Inventory Location, and click Add. The line Amount is 40 × 3.50 = 140.00, and so is the Amount at the top of the form. Inventory Location is required on each line in this account and form. The rate can be edited, but check it against what you paid and what the vendor will credit instead of changing it to force a result.
04 · Add a memo, choose the status and save
Enter a Memo such as "Failed continuity test; vendor agreed to take back". Then open the Status list. It offers Pending Approval and Pending Return. Pending Approval leaves the return waiting for an approver, who processes it under Transactions > Purchases > Approve Vendor Returns. Pending Return treats the return as approved and makes it available to ship. Being able to approve does not mean every return should skip approval, so follow your company's process. Here the person entering the return is the approver, so choose Pending Return and click Save.
05 · Check the saved return and where it goes next
NetSuite saves the return as VRMA31 and shows Transaction successfully Saved. The status is Pending Return, the Amount is 140.00, and Created From is empty. The Return button on the record starts the shipment.
Go to Transactions > Purchases > Ship Vendor Returns. VRMA31 is listed for Severn Cable Supply with a Return Total of 140.00. It did not need to go through Approve Vendor Returns, because it was saved as Pending Return. From here the return continues as usual: check Return and click Submit to open an item fulfillment that ships the cables, which is when stock leaves the warehouse, and then enter the vendor credit or refund.
Check the result
- Return: VRMA31 is saved for Severn Cable Supply with the status Pending Return and an Amount of 140.00.
- Source: Created From is empty because the return was entered without a purchase order.
- Queue: VRMA31 is listed under Ship Vendor Returns, so it is ready to ship.
Common questions
Can I create a vendor return authorization without a purchase order?
Yes. Open Transactions > Purchases > Enter Vendor Return Authorizations, choose the vendor and add the items yourself. The other route is Authorize Return on a purchase order, which fills in the vendor, items and rates for you.
Does NetSuite check that I received the item from the vendor?
A return entered without an order is not tied to a receipt or a purchase transaction, so it does not give you the receipt-based validation of a return created from a purchase order or bill. Do not assume the quantity or the item was ever bought from that vendor. Confirm both yourself before you promise the return.
What is the difference between Pending Approval and Pending Return?
Pending Approval means the return still has to be approved, and it appears under Approve Vendor Returns. Pending Return means it is approved, or approval was skipped on purpose, and it appears under Ship Vendor Returns. Choose Pending Return only when your role and your company's process allow you to approve the return. These statuses assume Advanced Shipping is on, and an account without it shows different statuses.
Does the authorization reduce inventory or what I owe the vendor?
No. The authorization is a non-posting record. Stock leaves when the item fulfillment for the return is saved, and what you owe the vendor changes when the vendor credit or refund is entered.
Why were the Subsidiary and Currency filled in when I chose the vendor?
They come from the vendor record and the transaction context. In a OneWorld account the subsidiary also controls which vendors are available, although a vendor shared with several subsidiaries can be chosen for more than one of them. The exact defaults depend on your vendor setup and form.
Why does the Inventory Location need a value?
In this account and form, each line has to say where the returned stock sits, which identifies the location the return is later fulfilled from. The exact requirement depends on your account, form, item type and inventory features. Items with lots, serial numbers, bins or inventory statuses can also need inventory detail when the return ships, and the fulfillment has to be valid for that location.
Why can't I find the return under Ship Vendor Returns?
Check that the authorization was saved as Pending Return or has been approved, that Advanced Shipping is enabled, that it has not already been shipped or closed, and that your role has the permission to fulfill vendor returns.