Procedure for Returning a Purchase
1. The University has a Return of Goods Form, which should be completed for each shipment being returned to a vendor. If a purchased good is unsatisfactory, the unit should contact the supplier to see if a replacement good can be supplied. If this is not possible, the unit should receive confirmation from the vendor (Returned Merchandise Authorization – RMA) that a full refund (if possible) or credit will be provided. The unit should discuss with the vendor how best to make this return and who is responsible for the goods during shipping.
2. The Return of Goods Form
2.1 The Vendor Information section of the form provides packing slip details, and serves to identify the shipment to the vendor.
2.2 The form is designed to provide the shipping information required for the preparation of the Bill of Lading, and the proper dispatch of the shipment which is to be completed and determined by the unit.
2.3 The form will provide a permanent record of the shipment so that it may be traced, if necessary.
2.4 The Product Information section is to be completed whenever goods or equipment are being returned to a supplier for credit or exchange. The unit is responsible to continue follow up with the vendor until the credit invoice or exchange is received.
2.5 A Return of Goods Form should be attached to the outside of the shipment showing the Vendor Information section details only.
3. Distribution of Return of Goods Form
The Return of Goods Form should be distributed as follows:
- 1st copy - forward to supplier
- 2nd copy - forward to Financial and Administrative Services Staff Accountant, Accounts Payable
- 3rd copy - department file copy
- 4th copy - packing slip, attach to outside of package clearly showing ONLY Vendor Information section details.
4. Shipments to Foreign Countries
4.1 Shipments to foreign countries require compliance with regulations governing the importation of the goods or equipment into the countries to which they are consigned.
4.2 The Customs Agent with the Department of Financial and Administrative Services, Strategic Procurement email@example.com will provide direction with any additional requirements to the Return of Goods Form. These are required in the following instances:
- When equipment is being sent to the foreign country for repair. If the proper procedures are not adhered to, the University will be required to pay duty and sales tax upon the full value of the equipment when it is returned rather than upon the cost of repairs only.
- When the goods or equipment are being sent to the foreign country for "no-charge" exchange. The University will be required to pay duty and sales tax on the exchanged goods or equipment unless proper procedures are adhered to when the goods or equipment are being returned to the foreign supplier for credit.
4.3 This instruction applies to shipments that are being sent by any form of transportation.
5. Accounting Procedures for Outgoing Shipments
5.1 There are two accounting situations which can arise as a result of returning purchases to suppliers:
- The original shipment was paid for and the return shipment requires reimbursement for the original purchase.
- The original shipment was not paid for and the return shipment does not require reimbursement.
5.2 When the original shipment is not paid for, then the Product Information section of the Return of Goods Form is not required to be completed.
5.3 When the original shipment is paid for, then Product Information section of the Return of Goods Form should be completed in order to identify for the unit that the credit invoice is in agreement with their expectations. If the credit invoice is not as expected (as shown from units banner reports), the unit will be required to follow up with the vendor.
Policies using this procedure:
Procedure Amendment History
There are past amendments for this policy: