Your company may need to deal with gaps in receiving material. Due to vendor issues, you may receive too much or too little of an ordered product, or you may receive incorrect or damaged items. You can track each of these issues in the system to keep your inventory management up to date.
This topic provides procedures for suggested business practices when managing the following discrepancies when receiving by purchase order:
You may receive too much of a product on a purchase order. Receiving the additional items creates a unique open order generation on the purchase order, but does not make the overshipment quantity available for sale. However, by receiving overshipments, the purchasing agent is notified in the Return Goods Queue that a vendor shipped too much stock. The purchasing agent then makes the decision about whether to return the goods to the vendor, or to accept the items into stock.
To receive more product than you ordered:
From the Purchase menu, select Stock Receipt Entry to display the Initial Order Entry dialog box.
Display the purchase order you want to receive by entering the branch number in the Branch field, and the order number in the Vendor/Order # field. Enter the vendor who shipped the order to select a transaction.
Click OK to display the purchase order in the Stock Receipt Entry window.
In the Qty/Unit field, enter the quantity you received over the amount that you ordered on a new line.
For example, if you received 100 widgets but ordered 10, enter 90 for the quantity on the new line.
In the Product Descriptionfield, enter the product name or description.
With the new line item selected, select Schedule from the Line Item menu to display the Line Item Scheduling window.
In the Recv Qty field on the Plenty Date line, enter the overshipment amount.
In the Type field, type O to indicate the quantity is overshipment.
In the Receive Date field, change the date to the current date, or the date you received the overshipment quantity.
Repeat steps 2 through 10 to receive overshipments of additional items on the purchase order.
Note: If you are authorized to receive additional stock into the warehouse inventory, click the Status tab to display the order's status information. The new, open order generation for the items you just received displays. In the OrderStatus field for that generation, type R to receive the quantity into your inventory.
If a purchasing agent in your warehouse makes the decisions about what to return to the vendor, press Shift-F4 and select Order to display the Call Tracking Entry window.
Create the tracker to notify the purchasing agent about the overshipment.
Note:If you make the decisions about what to return to the vendor, it may not be necessary to create a separate tracker for the overshipment. Create the return purchase order and return the goods to the vendor as necessary.
You may receive less product than what you ordered. Place the items you did not receive on backorder from within the purchase order to alert the purchasing agent to contact the vendor. Populate the Customer Calling Queue with Trouble orders to view orders that require the backorder items before the date you expect to receive them from the vendor.
If the Backorder Days field in Vendor Maintenance is set to R for review, the receive date for a backorder generation is left blank, allowing you to enter the actual date you expect to receive the items after communicating with the vendor. A blank receive date on a purchase order populates the Review P/O Backorders Queue making the purchasing agent aware that there are items on backorder.
If the Backorder Days field in Vendor Maintenance contains a numerical value, the receive date for a backorder generation is the date that number of days from today. For example, if the current date is December 1, 2003, and the Backorder Days field in Vendor Maintenance is set to 10, the receive date December 11, 2003.
To create a backorder for an item not received:
From the Purchase menu, select Stock Receipt Entry to display the Initial Order Entry dialog box.
Display the purchase order you want to receive by entering the branch number in the Branch field, and the order number in the Vendor/Order # field. Enter the vendor who shipped the order to select a transaction.
Click OK to display the purchase order in the Stock Receipt Entry window.
In the Qty/Unit field for the line item you need to backorder, enter the quantity you actually received and press Enter.
Click the Status tab to display the order's status information.
The Status window displays generations for the quantity you did receive, and an open generation for the quantity you did not receive.
If the Backorder Days field in Vendor Maintenance is set to R for review, no date displays in the Received Date field for the backorder's generation. Leave the Received Date field blank to populate the Review P/O Backorders Queue, making the purchasing agent aware that you did not receive the ordered quantity from the vendor.
If the Backorder Days field in Vendor Maintenance contains a numerical value, the Received Date field for the backorder's generation is the date that number of days from today. Update the date if necessary.
Repeat steps 4 through 6 to receive additional items on the purchase order.
If a purchasing agent or other personnel contact vendors about backorders, press Shift-F4 and select Order to display the Call Tracking Entry window.
Note: If you contact the vendor, it may not be necessary to create a separate tracker for the undershipment.
Create the tracker to notify the personnel about the undershipment.
You may receive incorrect items from your vendor or additional items that you did not include on your purchase order but that appear on the vendor packing slip.
If you received an incorrect item, create a new line item on the existing purchase order for the incorrect item. If the incorrect item was shipped in lieu of an item you ordered, backorder the item you did not receive. To bring the incorrect item into inventory, add the item to the purchase order and follow the overshipment instructions.
If the incorrect item is an item that you do not typically stock but you want to receive it into your inventory, add the item to the purchase order and create a nonstock product.
If you receive items from your vendor that are neither on the packing slip nor the purchase order, receive the items on the purchase order and flag the items as overshipment so they route to the Return Goods Queue.
To receive an incorrect item from a vendor:
From the Purchase menu, select Stock Receipt Entry to display the Initial Order Entry dialog box.
Display the purchase order you want to receive by entering the branch number in the Branch field, and the order number in the Vendor/Order # field. Enter the vendor who shipped the order to select a transaction.
Click OK to display the purchase order in the Stock Receipt Entry window.
In the Qty/Unit field, enter the quantity of the product you did receive on a new line.
In the Product Description field, enter or search for the product.
If the product is nonstock, select Nonstock from the Line Item menu to display the Nonstock Product Entry window.
From the Line Item menu, select Comment and add a comment to the line item that describes the shipping error and return to the purchase order Body tab. For example, "Vendor shipped X instead of Y."
If the items are not on the purchase order or the packing list, select Schedule from the Line Item menu to display the Line Item Scheduling window. If the items appear on the packing list but not on the purchase order, continue with step 10.
In the Line Item Scheduling window, change the date to tomorrow to create a new order generation and change the status to O for Overshipment in the Type field.
Flagging the quantity as overshipment routes the items to the Return Goods Queue.
Return to the purchase order.
Press Shift-F4 and select Order to display the Call Tracking Entry window.
Create the tracker to notify the purchasing agent about the incorrect product received.
You may receive damaged or defective items from your vendors. You may discover damaged or defective material while you are verifying and checking in the order against the PO Receiver Report. However, you may not discover the damage or defect until after you received the purchase order in the system.
To receive a damaged item from a vendor
From the Purchase menu, select Stock Receipt Entry to display the Initial Order Entry dialog box.
Display the purchase order you want to receive by entering the branch number in the Branch field, and the order number in the Vendor/Order # field. Enter the vendor who shipped the order to select a transaction.
Click OK to display the purchase order in the Stock Receipt Entry window.
Select the line item that was damaged, and select Schedule from the Line Item menu.
In the Recv Qty field for the receive date, enter the amount of the item that was damaged.
In the Type field, type F to indicate the quantity was damaged.
Return to the purchase order's Body tab.
Repeat steps 2 through 6 to receive other damaged goods.
If a purchasing agent makes the decisions about what to return to the vendor, press Shift-F4 and select Order to display the Call Tracking Entry window.
Create the tracker to notify the purchasing agent about the damaged items.
To indicate a damaged or defective item during the put away process:
From the Purchase menu, select Stock Receipt Entry to display the Initial Order Entry window.
In the Branch field, enter the branch at which the purchase order originated.
In the Vendor/Order #, enter or select the vendor or order that you want to receive.
Click OK to display the purchase order.
Place the cursor on the line item you are receiving.
From the Line Item menu, select Schedule to display the Line Item Scheduling window.
From the Edit menu, select SplitLocations to display the Split Locations window.
In the Type field, type F on a new line to indicate that the stock in that location is defective.
In the Location field, enter the warehouse location where you are storing the defective items.
In the Qty field, enter the number of items that are defective. Reduce the number of items in the original storage location by the number of defective items.
For example, you received 100 widgets and store widgets in location 01-01-188 in your warehouse. However, upon putting away the widgets, your stock person discovered that two widgets were dented and unusable. You store defective items waiting review in location 01-01-400. In the Qty field for location 01-01-400, enter 2 and decrease the total quantity in 01-01-188 line by two.
Save the information and return to the Line Item Scheduling window.
The received quantity now displays with the new, defective location also listed.
Return to the Purchase Order Entry Body tab.
With the line item selected, select Comment from the Line Item menu to indicate the quantity of the line item that needs reviewing.
See Also:
Vendor Short Shipments Workflow