Vendor Debits from a Compliance Fine

Vendor Debit Memos : Compliance Fines  

1.  

Vendor Debit Overview

Advantus obtains products from other vendors in order to sell to our customers. We require our vendors to operate at standards outlined by Advantus. We provide each vendor a Vendor Guide on an annual basis. This guide outlines our expectations and provides a summary of possible fines associated with a failure to meet those standards. We ask that the vendors sign an agreement advising they understand and agree to those terms.  When there is a failure in those standards by the vendor, Advantus may elect to debit the vendor a set fine. Such debits typically occur as a result of the following events: TRF: Failure or extra costs associated with product compliance testing Compliance Fine: Issue with item that resulted in a compliance fine from the Advantus customer Customer Reports/Feedback: Failure in item as determined by a compliant received from customer or end user Warehouse/Vendor Issue Task: Issue with item that resulted in a rework project by the warehouse to bring it up to the standards set

Compliance Fine: Vendor Debit Process Overview

When Advantus receives a fine from a customer, there might be occurrences that the fine is a result of an error made by the vendor. In those instances, we may decide to issue a vendor debit for the error. The Compliance Specialist will determine if the debit should be made when reviewing the fine. When a debit is required, the Compliance Specialist will: Enter the debit details on the Compliance Fine record in NetSuite,  Create Vendor Debit Memo record in NetSuite,  Forward a copy of debit memo to the vendor via email, Send a copy of the debit memo to accounting so they can process the vendor debit, and Attach copy of debit memo to the Compliance Fine record in NetSuite.  The following training will provide the steps on issuing a vendor debit for Compliance fines.

3.  

Vendor Debit: Compliance Fine Instructions

The following steps outline the vendor debit process as a result of a fine. Step Action 1 Access the Compliance Fine record in Edit mode  2 Select Yes in drop down of Debit Vendor field

 

Vendor Debit: Compliance

Step Action 3 Check the box beside Create Vendor Debit Memo field  4 Type in vendor number to be debited in Vendor field  Note: Vendor number can be found on the Item record.

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Step Action 5 Select Save option to update Compliance Fine  6 System will display created Vendor Debit Memo record in Edit mode

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Step Action 7 Confirm all the header fields are filled in correctly from fine  8 Complete the Error Category field using the drop down option

 

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Step Action 9 System will fill in standard fee in Chargeback Fee field  10 Confirm Chargeback Qty field is correct or update it

 

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Step Action 11 Select Add option to add Debit Memo Line Item  12 System will add new item line, repeat Steps 8-11 until all errors are added to Vendor Debit Memo record

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Step Action 13 Once all lines are added, confirm Debit Lines Subtotal is correct  14 Select Save option

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Step Action 15 System will save updates to Vendor Debit Memo record  16 Click the print icon () to generate PDF version of memo

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Step Action 17 System displays PDF of debit memo  18 Save PDF to share drive Compliance-Vendor Compliance-Vendor Debit Memos-YYYY folder 19 Email copy of PDF memo to the vendor using the contact details in NetSuite and cc: ap@advantus.com for accounting to process debit 20 Access Compliance Fine record to attach PDF of debit memo using Drag and Drop feature.