How to Create Return to Vendor with Material Receipt in iDempiere for Retail

In iDempiere, creating a Return to Vendor (RTV) from a Material Receipt requires a mandatory intermediate step: creating a Vendor RMA (Return Material Authorization) document first. The RMA serves as the bridge between the Material Receipt and the Return to Vendor, ensuring proper linkage and maintaining complete audit trail.

The Material Receipt defines the receipt of product from a Vendor. When items need to be returned, you create a Vendor RMA linked to that Material Receipt, add the return lines, and then create a Return to Vendor document from the completed RMA. This three-tier structure ensures data integrity and vendor accountability.

This process is essential for retail operations managing product returns due to defects, overstock, or quality issues.

Process Flow Diagram

Business Rules

The following business rules apply to Return to Vendor processing with Material Receipt in iDempiere:

• Vendor RMA MUST be created first and linked to Material Receipt
• RMA lines are populated from Material Receipt lines using the ‘Create lines from’ button in the Vendor RMA window
• Vendor RMA must be completed/processed before creating a Return to Vendor
• Return to Vendor is created second, linked to the completed Vendor RMA
• RTV lines are created from RMA lines (via ‘Create lines from’ button that only accepts RMA as source)
• Return to Vendor Line tab has ‘RMA Line’ field which links each RTV line to its corresponding RMA line
• Return Quantity cannot exceed Material Receipt received quantity
• Return to Vendor status flows: Draft → Completed
• Process Shipment button moves products out of inventory
• Optional Confirmations can verify actual returned quantities

Prerequisites

Before creating a Return to Vendor linked to a Material Receipt:

• Purchase Order must be created and completed
• Material Receipt must be created from Purchase Order and completed
• Products must be defined with valid Units of Measure
• Vendor must be configured as Business Partner
• Warehouse locations must be configured
• User must have access to Organization
• Vendor RMA document type must be configured
• Return to Vendor document type must be configured

Navigation

For Vendor RMA:

Menu → Returns → Vendor RMA

For Return to Vendor:

Menu → Returns → Return to Vendor

For Material Receipt:

Menu → Requisition-to-Invoice (Purchasing) → Material Receipt

The Return to Vendor Workflow

1. Purchase Order Created

↓

2. Material Receipt Completed

↓

3. CREATE VENDOR RMA (Mandatory)

[ Link to Material Receipt – Use ‘Create lines from’ button to add MR lines – Complete RMA ]

↓

5. Vendor Credit Memo Generated

↓

6. Accounts Payable Reconciliation

Step 1: Access the Returning Product Transaction

Navigate to:

Menu → Material Management and Pricing → Material Management Rules → Product

Select the specific Product and go to the Transaction Tab to view all movement transactions.

Locate the completed Material Receipt transaction (Movement Type = “Vendor Receipts”) and record:

• Receipt Document Number (from Transaction)
• Vendor name (Business Partner)
• Received quantity (Movement Quantity – shown as positive for receipts)
• Storage locator (Warehouse location)
• Related Purchase Order number
• Movement Date (date of receipt)

Step 2: Create Vendor RMA

This step is NOT optional. Vendor RMA MUST be created before creating Return to Vendor.

Instructions:

1. Navigate to Menu → Returns → Vendor RMA
2. Click New Record
3. Fill in RMA header:
   • Select Business Partner (the vendor)
   • Select Receipt (the Material Receipt from Step 1) – MANDATORY
   • Enter optional Description
   • RMA Type – Select from predefined types (Defective, Overstock, Wrong Item, etc.)
4. Save the RMA header
5. Click Create lines from button
6. Select Receipt as source
7. Select specific Material Receipt line items to return
8. Click Create
9. Verify quantities in RMA Line tab
10. Click Document Action button -> Complete
11. Document Status changes to ‘Completed’

Vendor RMA Header Fields

Field	Description	Sample Value
Business Partner	The vendor	CHENNAI SUPPLIERS
Receipt	Material Receipt being returned	1000021_06/16/2026
Document No	Auto-generated RMA ID	990001
Name	RMA name/identifier	Damaged Goods Return
Description	Notes about return	Defective items
RMA Type	Category of return	Damaged
Document Type	RMA document type	Vendor Return Material
Purchase Order	Optional PO reference	PO-5432
Company Agent	Procurement officer	Deepak Anand
Amount	Total RMA amount	708.00
Organization	Business unit	Chennai Store
Document Status	Current RMA status	Completed

Vendor RMA Line Fields

Field	Description	Sample Value
Line No	Unique line number	10
Receipt Line	Material Receipt line	10_100_CIN_Cinthol Soap_1000021_06/16/2026
Product	Item being returned	CIN_Cinthol Soap
Quantity	Return quantity	10
Description	Line notes	Damaged in transit
Amount	Line total	600.00
Active	Enable/disable line	Yes

Step 3: Create Return to Vendor from Completed RMA

Now that the RMA is completed, create the Return to Vendor document linked to it.

Instructions:

1. Navigate to Menu → Returns → Return to Vendor
2. Click New Record
3. Fill RTV header fields:
   • Select Business Partner (vendor) & Select Organization
   • Select RMA (the completed RMA from Step 2) – Mandatory
   • Select Warehouse (source warehouse)
   • Enter Movement Date (return date)
   • Enter Account Date (GL date)
4. Save the RTV header

Return to Vendor Header Fields

Field	Description	Sample Value
Tenant	Company/legal entity	POTS
Organization	Business unit or branch	Chennai Store
Document No	Auto-generated RTV identifier	590001
RMA	Associated Vendor RMA if applicable	990001
Order Reference	Use: Original purchase order reference	PO-01020
Description	Notes about the return	Defective units return
Document Type	RTV document type	MM Vendor Return
Movement Date	Date return is being processed	06/16/2026
Account Date	Date for GL posting	06/16/2026
Business Partner	The vendor	CHENNAI SUPPLIERS
Partner Location	Vendor location/address	Chennai
User/Contact	Vendor contact person	Murugan
Warehouse	Source warehouse for return	Chennai Selling Floor
Priority	Return priority	Medium
Delivery Rule	Delivery timing rules	Availability
Pick Date	Date items were picked for return	2024-06-14
Company Agent	Procurement officer	Deepak Anand
Delivery Via	Delivery method (pickup/ship)	Pickup
Freight Cost Rule	Freight charge method	Freight included
Create lines from	Button to generate lines from source	(Button)
Generate Invoice from Receipt	Button to create credit memo (in toolbar)	(Button)
Movement Type	Type of movement (read-only)	Vendor Returns
Create Confirmation	Button to create confirmations [present in the tool bar settings button]	(Button)
In Transit	Is movement in transit?	No
Date Received	Date goods were received back	(Not yet)
Document Status	Current RTV status	Draft
Document Action	Button to complete RTV	(Button)
In Dispute	Is document disputed?	No
Posted	GL posting status	No

Step 4: Create Return to Vendor Lines from RMA

Now populate the Return to Vendor with lines from the RMA. This is where the RMA-RTV link is finalized.

Purpose: Specify which products and quantities are being returned.

You can add lines in two ways:

• Option 1: Use Create lines from button (automatic) – recommended
• Option 2: Manually add lines one by one

Instructions:

1. In the saved RTV header, click Create lines from button
2. The pop-up dialog appears showing available RMA records
3. The RMA you referenced in the RTV header is already filtered/shown
4. Select the RMA Lines and click OK
5. All selected RMA lines are automatically added to Return to Vendor Line tab
6. Each RTV line now has:
   • RMA Line reference
   • Product
   • Quantity
   • Locator
   • UOM
7. Verify all line items
8. Save the Return to Vendor

Return to Vendor Line Fields

Field	Description	Sample Value
Tenant	Company/legal entity	POTS
Organization	Business unit	Chennai Store
Return to Vendor	Parent RTV document	590001_06/16/2026
RMA Line	Associated RMA line (if applicable)	990001_10_100_CIN_Cinthol Soap_1000021_06/16/2026
Line No	Unique line sequence number	10
Product	Item being returned	CIN_Cinthol Soap
Attribute Set Instance	Product attributes (serialized items)	(None)
Locator	Warehouse storage location	Selling Locator
Charge	Additional charge type	(None)
Description	Line notes/return reason	Defective units
Quantity (QtyEntered)	Quantity being returned	10
UOM	Unit of Measure	EACH
Movement Quantity	Qty to move out of inventory (auto)	10
Picked Quantity	Qty picked for shipment	0
Target Quantity	Target quantity for return	0
Confirmed Quantity	Confirmed qty after verification	0
Scrapped Quantity	Qty marked as scrap	0

Step 5: Create Confirmations (Optional)

If your QA or warehouse process requires verification of returned quantities before shipment:

1. Click Create Confirmation button in RTV header
2. Navigate to Confirmations tab
3. Enter Confirmed Quantity for each line
4. Save confirmation records

Step 6: Complete Return to Vendor

Complete the Return to Vendor document and execute inventory movements.

Instructions:

1. Verify all RTV lines are complete
2. Click Document Action button -> Complete
3. System validates and processes:
   • Updates inventory, reducing stock by returned quantities
   • Changes Document Status to ‘Completed’
   • Records Movement Date
4. RTV is now ready for shipment to vendor

Step 7: Generate Vendor Credit Memo

Create an AP credit memo for the returned goods.

Instructions:

1. Open the completed RTV record
2. Click Generate Invoice from Receipt button
3. A Purchase Invoice (Credit Memo) is created
4. Review and post to Accounts Payable
5. Reconcile with vendor’s credit memo when received

Common Issues and Resolutions

Issue	Cause	Resolution
Cannot create RTV lines – Create lines from button not working	RMA field in RTV header is empty	Reference the completed RMA in the RTV header ‘RMA’ field first
Create lines from pop-up shows no RMA records	No RMA exists, or RMA is not Completed status	Go back and create/complete a Vendor RMA first
In RTV Line, RMA Line field is empty	Lines were not created using Create lines from button	Delete lines and use Create lines from button instead
Return Quantity exceeds Material Receipt quantity	Invalid quantity in RMA or RTV	Reduce quantity to match Material Receipt Movement Quantity
Cannot save RTV header	Mandatory field missing	Ensure Mandatory fields are filled
Inventory not reducing after Completing Shipment	RTV still in Draft status	Check Document Status; click Docment Action button -> Complete Shipment again
Cannot reference Material Receipt directly in RTV	User trying to use non-existent feature	Use Vendor RMA as intermediate document; create RMA first from MR