Just to make it clear…. You should always book in rejected product with very few exceptions.
If you receive a very damaged product that is visually in poor condition, you can of course refuse to accept it. However, if you do accept the package you need to do the following:
• Book the delivery in.
• Raise a rejection note
• Advise the supplier of the rejection and request a returns note,
request a credit note to be raised following return, and re-invoice when the replacement is shipped.
• Advise your accounts that the delivery has been rejected and to hold the invoice in anticipation of the pending credit note.
It seems like a lot of work, and if your at home and receive a faulty part you would not consider such a process. However, for a business that may be dealing with thousands of parts you must have a system that reflects full traceability and takes into account a host of other activities, such as:
• Others in charge of expediting purchase orders.
• Internal works orders and manufacturing
• delivery time of replacement product, potential concession.
In larger concerns they often use a double booking in system:
• Upon receipt raise a GRN (Goods received note)
• Following successful Inspection raise an ICN (Incoming clearance
note), also used for internal orders. Invoices only paid on the strength of a generated/cleared ICN.