PO2000 P/O and Receiving Receivings Processing 1

Receivings Processing

Application Overview

The Receivings Processing application records the receipt of shipments ordered through the Purchase Order Processing application.  Once recorded, receivings may also be changed or deleted.

The application allows the recording of multiple receivings transactions for each line item on a purchase order.  A receivings transaction updates an item's quantity on hand and quantity on order.  It also sends a record to the Receivings Audit Trail File.  These records may be printed via the Receivings Audit Trail Report application.

The P/O package offers two options for recording receivings transactions and updating the appropriate data files.

The user may choose to record receivings on-line.  This means that inventory quantities and other files will be updated as soon as a receiving is entered.  This method provides the most up to the minute status of inventory for those applications that access the inventory files.  To select this option, set the Online Update Receivings Trx ? flag (#15) in P/O Setup to Y.

The second option is batch processing where entered receivings are sent to a Transaction File to be posted later via the Post Receivings Transactions application.  This method offers the flexibility of verifying the accuracy of transactions before they effect inventory levels.  It also allows the user to distribute the value of the received inventory to one or more G/L accounts.  To select this option, set the Online Update Receivings Trx ? flag (#15) in P/O Setup to N.

Note:  Switching back and forth between on-line and batch processing can corrupt the data files.  It is recommended to choose one method or the other and to stay with it. 

If it is necessary to change from on-line processing to batch processing, first post any receivings remaining in the receivings TRX files, then re-initialize the Receivings Transaction, Receivings Transaction Distribution, and Receivings Transaction Serial Files using the File Utilities application under the Util_setup window of the Elliott main menu. 

Warning:  Initializing these files will erase any receivings information recorded in them.  Changing from batch type processing to on-line is not recommended.

For more specific information on the two types of receivings processing, refer to the Online Receivings Processing and Batch Receivings Processing sub-sections of this Application Overview.

Mass Receiving

The Elliott Systems allows receiving an individual Purchase Order all at once rather than line by line.  It will receive items at the price ordered and at the quantity ordered.  Once received, the P/O receiving is still open for review, editing or changes prior to posting the receiving.

Locating The Correct Order And Line Item

 When you enter a receiving you may be working from a packing slip, invoice or other such vendor document.  You may not know which purchase order the merchandise was ordered on or which line items on the purchase order are represented in the shipment.  The receivings processing application is set up to help you locate the correct purchase orders and then to locate the correct line items on those purchase orders to record the receiving against.

 The first field that you must enter is the purchase order number.  If you do not know the receiving's purchase order number, you may press the F1 key to display a screen upon which you can obtain a list of likely order numbers based upon the vendor number and item number that you enter.  This screen will list every purchase order upon which this item was ordered from this vendor.  For each order that is listed, the screen will show the purchase order number, the line number for this item, the line item's promise date, quantity ordered, quantity due, unit of measure and expected cost.  All of this information can help you distinguish among similar line items to locate the one that the vendor actually intended to fill with this shipment.

 Once you have entered the correct purchase order number you must specify which line item on the order was received.  If you have the purchase order in front of you, you may simply enter the line item's line number.  If you do not know the precise line number, you may press a function key to display the purchase order's line items one at a time until the correct one comes up.  If you do not know the line number and the order is too big to step through all of its line items, you may enter the line item's item number.  During the entry of this field you will have the option of entering the item's description to locate the item number.  If you do not know the line item's line number or its item number, you may enter the vendor's item number from the shipping document to locate the correct line item.  By one of these means you will be able to locate the line item in question, assuming that you entered the correct order number.

Streamlined Transaction Entry

 There is another means of accessing a line item that provides the means for rapidly entering large numbers of transactions.  You will be allowed to press a function key during entry of the line number that will cause the program to display the next line item on the purchase order that has not yet been fully received.  The receiving will display default values for all fields except the quantity received, then immediately prompt you for that field's entry.  Once the quantity has been entered, you will be asked if there are any changes and, if not, the receiving will be written out.

 This method reduces the number of key strokes required to enter a receiving and it can be used for the majority of all receivings.  Certain receivings, such as those with a quantity rejected or those whose unit cost is different from the cost at which the item was ordered, would not be eligible to be processed in this manner.

Receivings Data

 Once the line item has been selected, information about it will display on five lines in the center of the screen.  This information includes the line item's average cost, last cost, standard cost, notification initials, move to location, job number, promise date, request date, (if no promise date was entered), commodity code, expected cost, purchase unit of measure, quantity ordered, quantity due, the ship-to location's description and the inventory location's description.  This data merely displays for informational purposes.  It cannot be altered.

 At this point you are ready to enter data pertinent to the receiving.  You will need to enter the receipt date, quantity received, quantity rejected, unit of measure in which the goods were received, the unit cost (optional) and the initials or code of the person responsible for verifying and processing the receiving.

Warning Messages

 During the entry of these fields there are a few situations that could trigger warning messages on the screen.  If the receipt date is earlier than the scheduled receipt date by a margin greater than what is acceptable per P/O Setup,  the screen will display:

Shipment XXX Days Early - Notify XXX - Accept Shipment ?

In most cases this will simply be an indication that you are posting the receiving against the wrong purchase order, in which case you would stop the transaction and re-enter it for the correct order.  If the vendor really did ship early, you may notify the person in your company responsible for making decisions about such problems, as the message suggests, before accepting the receiving.  If your company has specific policy regarding such situations, follow it.  The message on the screen is merely a means of informing you about a problem.  If you wish to continue processing the transaction, answer Y.  If you answer N, the transaction will be discontinued.

Another situation that could arise is over-shipment.  If the vendor ships more than you ordered, the following message will display 

Over-Ship By XXX,XXX - Notify XXX - Accept Shipment ?    

This situation is also frequently an indicator of the wrong purchase order.  It may also indicate that the vendor consolidated purchase orders before shipping, so you would need to post the receiving against two or more purchase orders.  If it was simply a case of negligent over-shipment, notify the appropriate person in your company as the message suggests or do as your company policy requires. 

The final situation that the program warns you about is overprice.  If the unit cost that is entered is too great by a margin that exceeds what is acceptable per P/O Setup, the following message will display:

Overprice By XXX,XXX.XXX - Notify XXX - Accept Shipment ?

An overprice is not so likely to be the result of the wrong purchase order, but it could be.  Take whatever actions are necessary when this situation arises.

Quantities Received And Rejected

 When merchandise is received it is customarily examined for shortages, damage and defects before the receiving is posted against the purchase order.  Certain problems with the shipment are the responsibility of the vendor while others are the responsibility of the shipper.  The problem may be a case shortage or a shortage concealed within the case, for instance.  The shipper would be responsible for a case shortage while the vendor would be responsible for a concealed shortage.  Other considerations such as the FOB point and whether the merchandise is shipped prepaid or collect can complicate the issue.  This is an area that can best be left to the freight department and to receivings personnel on the dock.  Receivings personnel who encounter such problems should be trained to write down all pertinent information and gather as much corroborating evidence as possible.

 When you post a receiving against its purchase order you need merely look at the documentation provided by receiving personnel to see what was received, what was rejected and what was short.  This documentation should also tell you the reason for any rejections.

 The quantity received that you enter is the quantity that was received in good condition and that you are willing to pay for.

 The quantity rejected is the amount received in poor condition or in the wrong size, color, model, brand, etc.  Following the entry of the quantity rejected, you will be required to enter the reason for rejection.  Rejected items are processed outside of the Purchase Order and Receiving package and will not be paid for when billed.

 The purchase order does not keep track of shortages in receivings that are posted against it so the entry of a quantity short is not relevant.

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