The Receiving Program is used to receive the items ordered from your vendors into your inventory locations.
The Receiving program is used to receive PO or purchase order documents and to receive ASN or advanced shipment notification records. Advanced shipment notification records are documents that are supplied by the vendor which detail the specific items and quantities being shipped out against a specific PO. The ASN is normally a subset of a PO as a po may be shipped against multiple times from the vendor side. ASN records are used to automate PO receiving and AP Processing for key vendors. ASN data can be used to automatically load the quantities, and serial numbers to be received into the system during the receiving process.
The PO Receipt program is used to receive the following types of purchase order lines.
• Warehouse fulfillment purchase orders (purchase orders that are used to replenish the warehouse quantities for each item and fulfill customer orders that will be shipped from one of your warehouse locations).
• Special Order purchase order lines. Special Order Purchase Order Lines are po lines that are issued for a specific sales order line item. Special Order purchase order lines are created automatically by the system when a special order sales order line is entered for the item. Special order purchase order lines are received into your warehouse and then the items are shipped from the warehouse to the customer. When a special order purchase order line is received, the system will try to allocate the received inventory to the sales order line it was created for. Special Order processing is described in more detail in the documentation for the CRM and the Purchasing Systems.
• Inter Facility Transfers. The Inter-Facility Transfer or IFT system is used to process transfers of inventory items between physically separated warehouse locations. The IFT system uses a special customer and vendor record to generate a purchase order in the receiving warehouse and a sales order in the outbound warehouse for the goods to be transferred. This allows the goods to be allocated to the sales order using the normal order processing logic, and it allows the receiving warehouse to process the receipt when the goods arrive at the destination location. The goods being transfered are tracked in the Pending file in between the time they are shipped and the time they are received at the destination warehouse. The PO Receipt program is used to receive the purchase order lines into the warehouse and to close out the Pending records for the items being transferred.
• The PO Receipt Program is NOT used to receive vendor shipment purchase order lines as these purchase orders are used for shipments that are sent directly to your customers by your vendors. Vendor Ship purchase orders are closed by creating an invoice for the customer for the items shipped and these invoices are created using the Invoice Vendor Ship Option available in the PO Management program.
The Purchase Order Receiving program is also used to input the serial numbers for any serialized items that are being received into stock, to update the average cost of the items being received (where appropriate), and to allocate any newly available stock to any orders that are waiting for it.
When an open purchase order is selected in the PO Management program and the Receive PO option is selected, the system displays the PO Receipt program and it loads the program with any open po lines for the selected purchase order.
Once the program is displayed, the operator can specify the quantity to be received against each po line and if the item is serialized (and not set to sales track only), the system will prompt the operator to enter the appropriate number of serial numbers for the items and quantities being received. As each serial number is input, the system also verifies that the serial number is not a duplicate, and it warns the operator and blocks save of the receipt, until the correct number of serial numbers have been specified.
Once the po line quantities and the serial numbers that are being received have been specified, the operator can save the receipt by pressing the Save Receipt Button.
As each purchase order receipt is processed, the system:
• Updates the on hand quantity and the on order quantity for the item in the inventory location where the item is being received.
• Averages the cost of each item being received into inventory and it normalizes this cost in any warehouse locations in which the item exists which are in the same division as the location where the receipt is processed (this keeps the average cost for each item synchronized across all locations in the same company or division).
• The System creates Serial Master records for the serialized items that are being received. These records store the item number and serial number received into stock as well as information from the receipt (vendor, purchase order cost, po received on). The Serial Master records are used to track each serial number as transactions are processed for the item.
• The system creates Serial History records for each of the serialized items that are being received. Serial History records are used to record the transactions that are processed against each serialized item.
• The System Creates Inventory Activity records to record the receiving transaction and the changes to each inventory item (cost and quantity) that result from the receipt. The Inventory Activity records allow you to view the transaction details for each item, and they are also used when processing the vendor invoice for the goods (please see the Accounts Payable documentation for more information on Three Way Matching or reconciling inventory receiving transactions with the vendor invoices for the inventory.
• If the purchase order being received against is an IFT or Inter-Facility Transfer, the receiving program will also close out any open pending records for the goods being received – to close out the transfer.
The following sections describe the various components and options that are included in the PO receipt Program.