To track defective items being returned to the vendor, what two settings should be configured in NetSuite?

The selection of enabling the Vendor Return Authorizations feature is essential for tracking defective items being returned to a vendor within NetSuite. This feature establishes a formal process for handling returns, allowing businesses to generate return authorizations that accurately document the items being sent back to the vendor for replacement or credit. By implementing this feature, organizations can effectively manage their vendor relationships, ensure accountability in returns, and maintain precise inventory records reflecting the status of returned items.

The capability to track and monitor these returns through authorized transactions helps streamline communication with vendors, increases operational efficiency, and reduces the likelihood of errors that can occur during manual return processes. This structured approach to returns not only enhances vendor management but also serves as a vital component in maintaining accurate financial records and inventory levels.

In contrast, using a standard Vendor Activity report or customizing the Inventory Activity Detail for Vendor RMA status might offer some insights into return activities but would not specifically address the need to create a documented approval process for vendor returns. Similarly, while enabling the Credit in Advance of Vendor Return preference may handle financial transactions related to returns, it does not focus on the necessary tracking and authorization mechanisms derived from utilizing Vendor Return Authorizations.