In the data flow diagrams, you saw a number of reject data flows; they occur for a number of reasons. Purchase returns and allowances frequently arise with respect to purchases. This exception routine usually begins at the point of inspecting and counting the goods (bubble 2.1 of Figure 13.13) or at the point of validating vendor invoices (bubble 3.1 of Figure 13.14).
To initiate an adjustment for returned goods or for a price allowance in the case of otherwise nonconforming goods, someone usually prepares a debit memorandumand transmits it to the vendor; the vendor commonly acknowledges by returning a credit memorandum. The debit memo data are also transmitted to the accounts payable department. In the case of a return, data are also made accessible to the storeroom and shipping department. The merchandise to be returned is then released from the storeroom and sent to the shipping department. There the items to be returned are counted, recorded to the debit memorandum, and shipped. The shipping department’s recording of the debit memo data is also made available to the accounts payable department.