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Receipt Tolerances

You may want to allow over-receipts on items that you use frequently within your organization, and you can prevent misallocation of shipments to incorrect destinations by setting tolerance levels and the control action. You can over-receive for a particular item if the over-receipt quantity is within tolerance, and you can set the control action to allow all over-receipts, permit over-receipts outside the tolerance but issue a warning message, or reject over-receipts outside the tolerance. See: Receiving Controls, Options, and Profiles.

Example

You order 100 boxes of shelf braces and indicate on the purchase order that this order requires a receipt. You decide to relax the restriction on the receiving tolerance for shelves since shelves are a low cost/high turnover item. You define the receiving tolerance level for shelves to be 10% but choose to allow receipts over this tolerance level after displaying a warning.

At the receiving dock, the receiving agent receives 111 boxes of shelf braces and enters a receipt for all of them. The receiving agent can accept them all because your system setup allows receipt over tolerance for this item.

Later, you determine that you are not using all the shelf braces you had predicted, and you decide to change the tolerance level to 3% and to not allow receipts over tolerance. In the next shipment, you receive another 111 boxes of shelf braces. Again, the purchase order was for 100 boxes. The receiving agent attempts to receive 111, but Purchasing displays an error message stating that the receipt quantity is over tolerance and does not let the receiving agent record the over receipt. So, this time the receiving agent can receive only 103 and must reject the additional 8.

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