Purchase orders for warehouse replenishment and special order sales order lines must be received into inventory using the PO/Inventory receiving program.
As stocking items are received into the warehouse, the system updates the on hand and on order quantities for the items in the Inventory Master file. The system also recalculates the average cost of the items being received. Inventory activity records are created to document the quantity and cost changes for each item in each inventory location. The last received date, last cost, ordered date (last PO date), and due in date for the items are also updated. Once the items have been received into inventory, the system allocates the received quantities to the outstanding sales order and shop order lines for the items and it posts the value of the goods received to the general ledger. If the purchase order line being received is for a special order sales order line, the system will attempt to allocate the goods being received to the sales order line it was created for. If the purchase order line being received was a warehouse replenishment line, the system allocates the inventory based on the schedule dates of the sales orders and shop orders that are waiting for the product.
Vendor Shipment purchase order lines are not received. Vendor Shipment purchase order lines are shipped directly to the customer by the vendor and these PO lines are closed by invoicing the customer for the goods shipped from the vendor (please see the later section on Vendor Shipments).