Sometimes it happens that an order gets cancelled in some time after it was confirmed. There could be different reasons for order cancellation:
Customer cannot make payment;
Price that was previously agreed on increased and is not acceptable anymore;
Specifications turn out to be not acceptable;
Import/Export related issues (the product cannot be imported into destination country or exported from country of origin);
Other.
Regardless of the reason, order cancellation has to be properly handled with the Vendor and internally in Odoo.
Order is cancelled BEFORE down payment is made
When an order is cancelled before down payment to the Vendor is made, Purchasing Person after receiving a task must do the following:
Inform the Vendor that the order is cancelled. When explaining the reason of cancellation, do not mention ‘client’ or ‘customer’ but use some vague reason, such as ‘it was decided internally not to move forward with the order at this time’.
Check if there is a bill created for the order that is being cancelled, if so, inform Accounting to cancel the bill.
Cancel the PO(s).
Once all the formalities are completed, the task can be closed.
Order is cancelled AFTER down payment is made
When an order is cancelled after down payment to the Vendor is made, Purchasing Person after receiving a task must do the following:
Inform the Vendor that we would like to cancel the order. When explaining the reason of cancellation, do not mention ‘client’ or ‘customer’ but use some vague reason, such as ‘it was decided internally not to move forward with the order at this time’.
The Vendor might then inform that raw materials or packaging materials were already bought. If this is the case, ask the Vendor to pause the order and calculate all the associated costs (cost of raw materials bought, cost of packaging materials bought or anything else that was already purchased).
Inform Salesperson of the amount due.
Once it is confirmed to deduct the spent amount from the down payment, inform Accounting Dept. of the amount due for refund and discuss with Accounting Dept. and the Vendor how the refund must be arranged.
Once solution is found, inform Salesperson and Purchasing Dept. Manager when the refund will be made.
Follow up with the Vendor until the refund is made.
Inform Salesperson, Purchasing Dept. Manager, Accounting Dept. that the refund has been received and that the bill has to be closed.
Cancel the PO(s).
Once all the formalities are completed, the task can be closed.