End a claim on held material

A held claim keeps your units on the shelf until you record what became of them. Before the supplier's replacement arrives, you have three actions on the claim's actions menu. The question that picks between them is simple: has the value already left your inventory? Once a replacement has arrived, the claim asks you a different question, described further down.

Before the replacement arrives

Choose Release the held units when you are deciding to return the goods to the supplier or scrap them. This writes a stock movement: your on-hand figure drops, and the value leaves with it. You choose returned to supplier or scrapped. If the claim has several products, choose which product the release is for.

You can release part of a batch in several steps, but a claim has one destination. Its releases must be all returned or all scrapped. The first release decides the destination, and a release the other way is refused. A pallet that is half returned and half scrapped needs two claims.

Choose The material is fine when the claim was a false alarm. The units rejoin ordinary stock and can be sold or consumed, and nothing leaves inventory. The product closes as Withdrawn, and so does the claim if it was the only product. For a claim with several products, the claim's status then follows its other products. The quantity also becomes claimable again on the original delivery.

Choose They already left when something else has already taken the held units, such as a pick for an order or consumption in production. This writes no movement: the movement that took them already removed their value, and another movement would deduct the same money twice.

Releasing the units or recording that they already left still leaves the supplier owing you the replacement. Sending a defective batch back, scrapping it, or discovering somebody used it does not change how many good units you are owed, and To resolve does not move for either action. The material is fine is the exception: it ends the claim on that product and its debt, with nothing replaced and nothing written off, because there was never anything wrong with the goods. In a claim with several products, the replacements for the other products are still owed.

Withdrawn is not Rejected. Rejected means you short-closed the claim: the supplier will not replace the goods, and you wrote the value off as a loss. Withdrawn means there was nothing wrong after all. They look similar in a list but mean opposite things.

Once any unit has left, The material is fine disappears from the menu. A half-scrapped batch is not a false alarm: treating it as one would forgive the replacement the supplier still owes for the half that went. If a release was entered with the wrong quantity, fix it with Correct units that left. See Correcting a claim.

When the replacement arrives first

When the replacement arrives while you are still holding the faulty units, receiving it works as usual and asks nothing. The part of the replacement that stands in for units you hold enters your stock at no cost, the price on the replacement order. The faulty units keep their cost: you paid once, so your stock is worth what you paid.

The claim's row then shows a reminder such as 10 faulty units still held, asking you to record what happened. The claim's detail and actions menu also show a reminder, and Record what happened takes the place of Release the held units. An amber reminder at the top of the Supplier Claims page and a Supplier claims: record what happened card on the dashboard say the same.

Record what happened asks, in one go, how many held units were returned to the supplier or scrapped (not both: a claim has one destination) and how many you kept. Returned or scrapped units leave your stock, but your inventory value does not fall: their cost stays in stock, now carried by the replacements. Kept units stay as ordinary stock at their cost, and the replacements stay at no cost because you received them on top of what you paid for.

For example, you bought 120 units at 74.50, for 8,940.00 in all, and a claim holds 10 of them. When the replacement of 10 arrives, you have 130 units worth 8,940.00. If you return or scrap the 10, you have 120 units worth 8,940.00. If you keep them, you have 130 units worth 8,940.00. If you return 6 and keep 4, you have 124 units worth 8,940.00.

Under Average cost, keeping the 10 lowers the unit cost to 8,940.00 divided by 130: the same money now covers more units. If some units were already released before the replacement arrived, only the part of the replacement matching units still held enters at no cost. The rest enters at the claim's cost, as any replacement does.

You can keep only units whose replacement has arrived. If the material turns out to be fine before any replacement, use The material is fine instead. Once a replacement has arrived for held units, The material is fine is no longer offered. They already left is offered only for held units still waiting for their replacement.

While you have not recorded what happened, sales of the product are costed from the stock you paid for: the replacements set aside at no cost are not sold before you decide. Under Average cost, they are part of the average from the day they arrive.