The Unit Of Measure

 The vendor may ship the merchandise in a unit of measure different from what you ordered.  For instance, you order boxes and the vendor ships cases.

 Every item that is defined in the Item File has two units of measure that are acceptable, the purchase unit of measure and the stocking unit of measure.  The unit of measure that you enter on the screen must be one or the other.  If the vendor shipped in some completely different unit of measure, you will have to manually calculate the quantity at one of the two acceptable units of measure before entering the quantities received and rejected.

 Inventory records are updated in the stocking unit of measure.  The purchase order is updated in the unit of measure at which the merchandise was ordered, which may be either the purchase or stock unit of measure.

The Unit Cost

 The entry of a unit cost is optional at this time.  The vendor may not have provided this information with the shipping documentation.  It is also possible that the vendor provided only the extended line amount, not the unit cost.

 You may skip the unit cost field if the unit cost is not available.  If you have only the total cost, you may press a function key that allows entry of this figure and then automatically calculates the unit cost from the quantities received and rejected.

LIFO And FIFO Cost Method

 A layer is a single record in the LIFO/FIFO file that records for each item each receipt or purchase and associated cost and quantity.  Posted receivings from the Inventory Management, Bill Of Material Processor, and Purchase Order and Receiving packages will create LIFO/FIFO layers.   Posted credit memos from the Customer Order Processing package will also create a layer.

 A further explanation on implementation of LIFO/FIFO is contained under Inventory Transaction Processing in I/M. 

Serial Transactions

 If the Serialized/Lot Items flag is S in I/M Setup, then serialized items and transactions are allowed.  All items are not automatically assumed to be serialized.  The second screen of Item File Maintenance has both a serialized item question and length of warranty question.  These fields are used to selectively create serialized inventory.

 Entry of serial numbers on receipts is not mandated.  

Lot Transactions

 If the Serialized/Lot Items flag is L in I/M Setup, then lot items and transactions are allowed.  All items are not automatically assumed to be tracked by lot.  The second screen of Item File Maintenance has a lot number question to allow selective creation of inventory items requiring lot tracking.

 Each receipt of a lot item and issue of a lot item creates a record in the Serial/Lot file.  These history records may be inquired or printed through the Serial/Lot Processing application.

 Lot records are created by receivings from both the Inventory Management and Purchase Order and Receiving packages. Each receipt transaction relates directly to a stocked lot record in the Serial/Lot file. 

Change And Delete Modes

 In order to access a receiving transaction to change it or to delete it, you must enter the transaction's purchase order number and item number.  The program will prompt you to enter these fields, skipping the entry of the purchase order line number.  You may press RETURN for the item number to display the first (and subsequent) receivings for the purchase order.  If you enter a specific item number, the program will display the first receiving on file for that item on that purchase order and ask if it is the correct receiving.  You may review all receivings of a particular item on a particular purchase order in this manner.  Once you select the correct receiving, you will be asked for the Field Number or you will be asked if you wish to delete this receiving, depending upon whether you are in change or delete mode.

 In change mode you will be allowed to change all fields from Receipt Date through Receiver with the exception of the Unit Of Measure field. 

 If you are using on-line processing, in delete mode you will in effect be creating a delete transaction rather than actually deleting the original transaction.  This delete transaction will show up on the Audit Trail Report along with the add and change transactions. 

 If you are using batch processing, deleting a transaction will simply remove it from the Transaction File. 

On-Line Receivings Processing

 When a receiving is entered, an audit trail record is created to record the addition of the transaction.  This original transaction is referred to as an Add transaction.  If the data about the receiving gets changed through the change mode, the add record is unaffected.  A Change transaction is created to record the changes.  Each subsequent change to the record causes a new change record to be created with all prior transaction records being unaffected.  Therefore, after the fifth time a receivings transaction has been changed there will be one add record and five change records for that transaction in the Audit Trail file.  If the transaction is then deleted, a Delete transaction is created.  Once a receiving has been deleted it is no longer accessible except through the Audit Trail Report where you would see listed one add record, five change records and one delete record.

It is important for you to understand how the information that you enter is stored, primarily so that you will know how to interpret the Audit Trail Report.  The application functions pretty much as if it were a more traditional type of transaction entry module.  You do not need to worry about locating the most recent change transaction, for instance, since the program will automatically do that for you when you specify which receiving you want.

Standard Cost Variance

 Beginning with Elliott V7.4, the system now supports both Purchase Cost Variance as well as Standard Cost Variance.  Standard Cost Variance is the difference between Standard Cost and Receiving Cost.  Standard Cost Variance is created during PO Receiving (the same principle applies to Landed Cost Variance).  The receiving accrual is created from the receiving cost.  Purchase Cost Variance is the difference between Receiving Cost and Invoice Cost.  Purchase Cost Variance is created during the AP Voucher Process.  This behavior is different from previous Elliott versions because (1) There was no differentiation of Standard Cost Variance and Purchase Cost Variance in the past and everything was lumped into one Purchase Cost Variance Account; (2) The receiving accrual was created from the standard cost; (3) The variance was created through the AP voucher process only.

 In I/M Material Cost Type Location Account File, you may see the “Standard Variance” account now if you are using standard cost.  You may leave it blank, which implies your standard variance account is the same as the purchase variance account.  In the same maintenance screen, you may decide whether you wish to “Use Standard Cost Variance.”  In most situations, you should answer “Y.”  You may answer “N” for certain material cost types where your standard cost is zero.  This may be, for example, expense items like manufacturer tooling where it is not a real inventory item, but you may want to keep them in your item master to track their quantity.

 Prior to Elliot V7.3, Elliott did not create standard cost variance for any item where the standard cost was zero.  In Elliott V7.3 or higher, if you do not wish to create standard cost variance you must define this in the material cost type location account file and answer “N” to “Use Standard Cost Variance.”

Receive PO Parent Line Item’s Components

 This is a special enhancement for purchasing manufactured parent items.  For example, you may wish to purchase all the components of a manufactured parent item from a vendor (like your parent company) for assembly.  It is mutually understood between you and your vendor the purchase is for the components, not the assembled parent item itself.  You may use this feature by indicating “Y” to field 13 (Recv Comp) in the PO Line Item Screen and the ATP details will be created for the parent item.  Upon actual receiving, the quantity updates will be made to the component items.  To use this feature, you must turn on P/O Global Control “23. Allow to Receive Parent Item’s Components in PO” and the PO Line Item must be a Manufacturing Parent Item as defined in Bill of Material Structure.