10.4 Vendor Return

Vendor return occurs when state agencies trade-in material in exchange for some concession when acquiring new, like property. Vendor return transactions must be submitted to and authorized by Surplus. 

Requests for vendor return will not be approved by Surplus without documented benefit to the state. For instance, the advantage can be a discount on the new material, cost avoidance on the removal/disposal of the old property, or a combination. 

Examples include: 

• IT/computer replacement procurements (vendor agrees to remove old equipment)
• Capital equipment procurement (e.g. tractors)
• Building systems replacement (e.g. HVAC removal)
• “Totaled” vehicle damage where the other party pays for liability
• Weapon upgrades from a statewide contract

A vendor return requires the following steps:

1. The custodian entity enters the transaction request in Asset Works,  selecting V as the method, and enters the supplier contact information with supporting documentation describing the benefit(s) of the proposed trade-in.
2. The entity manager approves the transaction.
3. Surplus receives the request, verifies the receiving entity's authorization, verifies the request is appropriate for “new, like property,” and verifies the provisions of the agreement convey a benefit to the state.
4. Surplus issues a trade-in authorization via email.
5. The custodian entity completes the physical transfer.
6. The custodian entity removes the returned asset(s) from its property inventory records.