Vendor Debit Process
When creating a Task for processing by Compliance, certain fields need to be filled out before the Task can be completed and the Debit Memo can be processed correctly.
Task Information
Task Type: If creating a Debit Memo this should be labeled as Warehouse/Vendor Issue to alert Compliance that a Debit Memo is pending in Netsuite.
Fill in the necessary information in the Title, Requestor, and Location fields.
Directions & Tasks
The Directions to Task Recipient note specifics relating to the fine that is being created, including directions for Rework.
Note: If the vendor is being debited an amount that is different than the preset amounts that are located in our Domestic/Import Vendor Manuals, this is where that amount needs to be noted.
Fill out the Priority and Due Date sections that are also in the Directions & Notes section.
Vendor Errors
The Vendor Error section is what determines the dollar amount that we are debiting the vendor. Each Vendor Error type is attached to a preset amount, based on the chargeback schedule that is listed in our Domestic/Import Vendor Manuals.
| Vendor Error | Amount |
| Audit Failure | $350 |
| Carton < 90% capacity or > ½” | $325 |
| Carton dimensions/weight | $325 |
| Delayed Communication | $100 |
| Delays in Receipt of Product Sample | $325 |
| Failure to Return Signed Documents On Time | $50 |
| Improper Use of Fragile Markings or Carton Arrows | $325 |
| Incorrect Pack or Case Quantity | $1,000 |
| Late Shipments and/or Incomplete Shipments | $325 |
| Mis-Labeled Cartons | $325 |
| Mis-Labeled Product | $325 |
| No Packing Slip | $325 |
| Other Defects | $325 |
| Other Requirements | Amount needs to be specified in the notes |
| Other- Production Delays | $325 |
| Paperwork Errors | $325 |
| Product Recalls and/or Stop-Sales | $2,500 |
| Product Testing Failure | $350 |
| Trilingual Information Missing | $325 |
| UPC on Carton | $325 |
| UPC on Item | $1,000 |
| Weights & Measures Violations | $2,500 |
There are 5 slots under Vendor Errors that allow for multiple Vendor Errors to be filed on the same Debit Memo. It is important to ensure this field is filled out completely before submitting the Task to Compliance for completion.
Note: The Other Requirements is used when charging Vendors non-preset amounts, such as amounts agreed upon with the vendor for freight costs, etc.
Task Status
Current Assignee and Overall Status are required to be filled out for the Task to be submitted. Rework Status is used when rework is needed as part of the Task. Debit Status will be used by the Compliance department.
Related Records
The information in this section is not required for submission but allows for a specific item to be attached to the debit memo, as well as a Netsuite/Macola PO and Vendor. The Product Specialist and Buyer responsible for the particular item are also listed in this section.
Rework Summary
If Yes is selected in the Requires Rework section, new fields will appear on the page that requires attention.
For the creation of the Debit Memo, the most important field to pay attention to is the Rework Labor Hours. This must be filled out to charge the vendor for the number of hours that rework was needed due to an error created by the vendor.
The Rework Hourly Labor Rate is automatically pre-populated at the amount of $25.00/hour. If this section is not filled out the debit memo created by Compliance will not include the labor hours used to find/correct the vendor error.
Vendor Debit (Compliance)
This section is completed by Compliance and is populated based on the information filled in the Vendor Errors and Rework Summary sections.
The Vendor Errors section will show the selected error and the fee associated with the error. The Additional Fee section is available if we are debiting the vendor an additional amount as well as the pre-set amount attached to a Vendor Error.
Compliance will select the box Include Rework Cost in Debit if the Rework Summary section says Yes and has the necessary information included.
The Total Debit line will show 0.00 until the Task is filled out completely and Saved in Netsuite.
Compliance will select the Create Debit Memo to generate the Debit Memo to send to the Vendor and Accounting.
Once Saved a Debit Memo will be attached to the Task in the Debit Memo section at the bottom of the Task as a PDF file. This section also has a section for attaching any pertaining files relating to the Task/Vendor Debit.