18 Routing Receipts

This chapter contains the following topics:

Section 18.1, "Understanding Receipt Routing"
Section 18.2, "Creating Receipt Routes"
Section 18.3, "Defining Payment Eligibility for Item Removal"
Section 18.4, "Activating Receipt Routing"
Section 18.5, "Defining Sample Requirements and Item Specifications"
Section 18.6, "Working with Items in a Receipt Route"
Section 18.7, "Removing Items from a Receipt Route"
Section 18.8, "Reviewing the History of Items in a Receipt Route"

18.1 Understanding Receipt Routing

You might want to track items from the moment that they leave a supplier's warehouse until they arrive in stock. Depending on the operation, several stops might exist between the two points, such as the dock, the staging area, inspection, and so forth.

You use receipt routing to track and move items through a series of operations that make up a receipt route.

You must define the operations that make up each receipt route. You must also determine the logistical and accounting updates that the system performs as you process items through a receipt route. After you create a receipt route, you can assign it to an item based on the supplier who provides the item. This diagram illustrates a typical receipt route:

Figure 18-1 Example of a receipt route

Description of "Figure 18-1 Example of a receipt route "

Each time you enter a receipt for items, the system enters the items in the first operation of the receipt route. You must enter the items in subsequent operations of the receipt route. During each operation, you can:

Remove items from the route due to returns, rejects, and so forth.
Have the system automatically generate replacement orders for items that you return.

18.2 Creating Receipt Routes

This section provides overviews of definition of operations and journal entry creation for items in receipt routes, lists prerequisites, and discusses how to create a receipt route.

18.2.1 Understanding Definition of Operations

You can monitor items from the moment that they leave a supplier's warehouse. You create receipt routes to determine the series of operations through which you process items until the items become part of the inventory.

You must define the operations that make up each receipt route. You must also determine the updates that occur as you transfer items to each operation. For example, you specify the operation at which items become on-hand inventory. When you enter items at the on-hand operation, the system creates journal entries to reflect the items in inventory, and you can create a voucher to pay for the items.

You can direct the system to create journal entries each time you transfer items to and from an operation in a receipt route. You do this so that the value of the items at each operation appears in the general ledger. For example, you might want the general ledger to reflect the value of items currently at the dock.

When you create a receipt route, you must indicate whether to pay for items that you remove (disposition) from the route based on the reason that you remove them. For example, you might want to pay for items that you rework but not for pay items that you return.

A receipt route is a series of operations through which you process items upon receipt. These operations might include:

Transit
Dock
Staging area
Inspection
Stock

To create a receipt route, you must define the series of operations that make up the route. For example, you can create a receipt route that is made up of two operations, staging area and stock and another receipt route that is made up of three operations—staging area, inspection, and stock.

You determine the updates that the system performs as you process items through a receipt route by specifying at which operation:

Items are available to promise.
Items are received for supplier performance purposes.
Items are at an on-hand status.

Each update field on the Work With Receipts Routing Codes form represents a field in the F41021 table. The system maintains balances of inventory items in this table. You can have the system update the availability of an item at any operation in a receipt route. For example, you might want the ability to promise items to customers (enter sales orders) when the items arrive at the dock instead of waiting until the items are in stock.

You access the Item Availability Definition form from the Branch/Plant Constants form to indicate which fields the system uses to calculate item availability. For example, you can specify that the system add the balance in the Update Transit Quantity field to the current on-hand balance to calculate availability.

You must specify at which operation the system records the receipt date for items. For example, you can specify that the system record the receipt date when items arrive at the dock. The system compares the receipt date to the date that the supplier promised to deliver the items to determine supplier performance.

You must specify at which operation the item is eligible for payment. When you transfer items to the payment eligible operation, the system creates journal entries to reflect a liability for the items and you can create a voucher to pay for the items. The system also updates:

Item costs.
Landed costs.
Cost variances.
Item transaction histories (Cardex).

18.2.2 Understanding Journal Entry Creation for Items in Receipt Routes

You determine when the system creates journal entries for items in a receipt route so that the value of the item is reflected in the general ledger. The system automatically creates journal entries when you enter items at the operation at which they are eligible for payment and at the last operation in the route.

You can direct the system to create journal entries each time you transfer items to and from a certain operation in a receipt route so that the general ledger reflects the value of items at each operation. For example, you might want the general ledger to reflect the value of all items that are at the dock.

You must enter a general ledger category for each operation at which the system creates journal entries (unless the system creates entries at the last operation only). The general ledger category directs the system to retrieve an account number from the Routing Operation automatic accounting instruction (AAI) table for which to:

Debit the value of items that you transfer to the operation.
Credit the value of items that you transfer from the operation.

You can have the system create journal entries at an operation that precedes the payment-eligible operation. For example, you might want the general ledger to reflect the value of items at the dock even though you do not pay for the items until they are in stock. To account for items that are not yet payment-eligible, the system:

Debits a routing operation account (to reflect items at the operation).
Credits a prior to receipts/completions liability account (to reflect a preliminary liability for the items).

When you enter items at the payment-eligible operation, the system credits a received not vouchered account to reflect the liability. The system debits:

An inventory account (if the payment-eligible operation is also the last operation in the route and no prior journal entries exist).
A prior to receipts/completions liability account (if this account was credited prior to the payment-eligible operation).
A routing operation account (if the payment-eligible operation is the first operation at which the system creates journal entries).

When you enter items at the last operation in a receipt route, the system debits an inventory account to reflect the value of the items in stock. The system credits:

A received not voucher account (if the last operation is also the payment-eligible operation and no prior journal entries exist).
A routing operation account (if items were previously debited to another operation).

After you create a voucher for items in a receipt route, you cannot transfer the items back to an operation that precedes the payment-eligible operation. For example, a receipt route has a dock, inspection, and stock operation. Inspection is the operation at which items are payment-eligible. After you create a voucher, you cannot transfer the items back to the dock unless you reverse the voucher.

After you enter items in the operation at which they are eligible for payment, you can create a voucher to pay for the items. The system creates an offsetting entry for the received not vouchered account when you create a voucher. When you post that entry to the general ledger, the system credits the accounts payable trade account.

18.2.3 Prerequisites

Before creating receipt routes, you must:

Set up receipt route codes in user-defined code (UDC) table 43/RC.
Set up operation codes in UDC table 43/OC.

18.2.4 Forms Used to Create Receipt Routes

Form Name	Form ID	Navigation	Usage
Work With Receipts Routing Codes	W43091B	Receipt Routing (G43A14), Receipt Routing Definition	Create a receipt route. Work with receipts routing codes.
Receipt Routing Definition	W43091D	Click the Add button on the Work With Receipts Routing Codes form.	Define operations in a receipt route.

18.2.5 Creating a Receipt Route

Access the Work With Receipts Routing Codes form.

Route Code

Enter a value from UDC 43/RC that identifies a route on a receipt route. Each receipt route consists of a series of operations through which the system directs items upon receipt.

Oper Seq (operation sequence)

Enter the sequence in which the system performs the operations or steps of the route.

Oper Code (operation code)

Enter a value from UDC 43/OC that represents an operation or step within the receipt route.

Update Transit

Enter a value that indicates whether to update the Quantity in Transit field in the F41021 table as soon as a quantity moves into this operation.

You can enter Y only once in this column for a route code.

Update Insp (update inspection)

Enter a value that indicates whether to update the Quantity in Inspection field in the F41021 table as soon as a quantity moves into this operation.

You can enter Y only once in this column for each route.

Update Op 1 (update operation 1) and Update Op 2 (update operation 2)

Enter a value that indicates whether to update the Quantity in Operation 1 field in the F41021 table as soon as a quantity moves into this operation.

You can enter Y in this column only once for each route code.

Update O/H (update on hand)

Enter a value that indicates whether to update the Quantity on Hand field in the F41021 table as soon as a quantity moves into this operation.

You can enter Y in the last operation only.

Rec (receipt acknowledgement)

Enter a code that determines at which operation the system records the receipt date for items in the receipt route. Based on the receipt date, the system calculates supplier performance information such as lead-time days for an item and on-time deliveries.

You can enter Y in this column only once for each route.

Pay (payment eligible)

Indicates at which operation the goods are eligible for payment. The system automatically updates the Pay (payment eligible) field for the same operation at which you update the on-hand balance. When quantity is moved to this operation, the system updates the open quantity and open amount in the Purchase Order Receiver File table (F43121) so that they can be vouchered in the Voucher Match program. The system uses this field to determine whether the quantity is eligible for payment when the quantity is dispositioned out of the routing process. Each quantity disposition has its own setup. This must be the last operation in the route. You can enter a sequence number if the order in which you want the operations to occur differs from the order in which you enter the operations.

Note:

You can enter Y in this column only once for each route.

18.3 Defining Payment Eligibility for Item Removal

This section provides an overview of item removal and lists the forms used to define payment eligibility for item removal.

18.3.1 Understanding Item Removal

As you process items through a receipt route, you might need to return, rework, scrap, reject, or adjust items. When you create a receipt route, you must indicate whether to pay for items that you remove (disposition) from the route based on the reason that you remove them. For example, you might want to pay for items that you rework, but not pay for items that you return.

You must specify the removal categories (returns, reworks, scrap, rejects, or adjustments) for which items are payable. For example, if you specify that the scrap category is payable, the system determines that you must pay for items that you classify as scrap.

If items that you remove from a receipt route are payable, the system creates journal entries to reflect a liability for the items. The system credits a received not vouchered account and debits a disposition account based on the general ledger category that you specify for the removal category.

18.3.2 Forms Used to Define Payment Eligibility for Item Removal

Form Name	Form ID	Navigation	Usage
Work With Receipts Routing Codes	W43091B	Receipt Routing (G43A14), Receipt Routing Definition	Work with receipts routing codes.
Receipt Routing Definition	W43091D	Select a receipt route on the Work With Receipts Routing Codes form, and then click the Select button.	Define payment eligibility for item removal. Review and modify a receipt routing definition.
Routing Disposition Setup	W43DAC	Select Disposition Setup from the Form menu on the Receipt Routing Definition form.	Define payment eligibility for item removal.

18.4 Activating Receipt Routing

This section provides an overview of receipt routing activation, lists a prerequisite, and discusses how to assign receipt routes to items.

18.4.1 Understanding Receipt Routing Activation

Receipt routing enables you to monitor the status of the items that you receive and determine when the items will be available to distribute. To activate receipt routing, you must:

Assign receipt routes to items.
Initiate receipt routing.

You must assign a receipt route to an item to determine the operations through which the system processes the item upon receipt, such as transit, staging, inspection, stock, and so forth. You must then activate receipt routing to process items through receipt routes.

You can assign both a standard receipt route and an alternate receipt route to an item. Upon receipt, the system enters an item in its standard receipt route unless you have also specified an alternate receipt route. An alternate route is one that the system sends an item through intermittently. For example, you can assign an alternate route to an item so that every fifth shipment that you receive is inspected.

You must assign an alternate receipt route to an item to have the system process the item through a different series of operations based on a number of days or a number of receipts. For example, you can assign an alternate route to an item to have every fifth shipment of the item go through an inspection operation. You must assign receipt routes to an item based on the supplier who provides the item.

You can specify the quantity or percentage of items that must be received to enter an item in its alternate route. You can also define sampling requirements and item specifications for inspection purposes.

You use processing options for the receipts entry program to initiate the receipt routing process. After you initiate receipt routing, the system enters an item into its assigned receipt route when you enter a receipt.

18.4.2 Prerequisite

Create receipt routes.

18.4.3 Forms Used to Activate Receipt Routing

Form Name	Form ID	Navigation	Usage
Work With Supplier/Item Relationships	W43090A	Receipt Routing (G43A14), Routing/Analysis Revisions	Locate and review receipt routes for items.
Supplier/Item Relationships	W43090B	Select an item on the Work With Supplier/Item Relationships form, and then click the Select button.	Assign receipt routes to items.

18.4.4 Assigning Receipt Routes to Items

Access the Supplier/Item Relationships form.

Normal Route Code

Enter a value from UDC 43/RC that identifies a receipt route. Each receipt route consists of a series of operations through which the system directs items upon receipt.

Alt Route Code (alternate route code)

Enter a value from UDC 43/RC that identifies an alternate receipt route. Each receipt route consists of a series of operations through which the system directs items upon receipt.

An item can have a normal receipt route and an alternate receipt route. The system directs an item through the alternate receipt route intermittently based on the number of days or number of receipts that you specify.

Route Type Code

Enter a code that qualifies the routing for an item and supplier combination.

Frequency Days

Enter a number that determines how often the system directs an item to the alternate receipt route, based on days. For example, you enter 3 in this field. If January 1 was the last date for the alternate receipt route, the system directs the next receipt performed on or after January 4 to the alternate receipt route.

Frequency Number

Enter a number that determines how often the system directs an item to the alternate receipt route, based on receipts. For example, if you enter 5 in this field, the system directs every fifth receipt of the item to the alternate receipt route.

18.5 Defining Sample Requirements and Item Specifications

This section provides an overview of sample requirements and item specifications, lists a prerequisite, and discusses how to define sample requirements and item specifications.

18.5.1 Understanding Sample Requirements and Item Specifications

You might assign an alternate receipt route to an item to have the item inspected intermittently. After you assign an alternate route to an item, you can specify the quantity of the item that must be received before the system processes the item through its alternate route. You can also specify sample requirements for inspection purposes, including:

The quantity or percentage of receipt items to use for inspection.
The quantity or percentage of the sample size that must pass inspection before the receipt is considered acceptable.

After you enter sample requirements for an item, you can add specifications or any other text that applies to the item. Sample requirements and item specifications are for informational purposes only. You can review this information when you move or remove items in a receipt route.

18.5.2 Prerequisite

Assign an alternate route to the item for which you want to define sample requirements and specifications.

18.5.3 Forms Used to Define Sample Requirements and Item Specifications

Form Name	Form ID	Navigation	Usage
Work With Sample Size Tables	W43093B	Receipt Routing (G43A14), Inspection/Sample Size Table	Locate and review sample requirements and item specifications.
Inspection/Sample Size Table	W43093A	Click the Add button on the Work With Sample Size Tables form.	Define sample requirements and item specifications.

18.5.4 Defining Sample Requirements and Item Specifications

Access the Inspection/Sample Size Table form.

From Quantity: Enter the quantity of the item that you must receive before the system sends the item through the test receipt route.
Sample Quantity: Enter the number of units that should be inspected through receipt routing based on the units received.
Sample Percentage: Enter the percentage of units that should be inspected based on the units received.
Acceptance Quantity: Enter the number of units that must pass inspection for any of the units to be accepted.
Acceptance Percentage: Enter the percentage of units that must pass inspection for any of the units to be accepted.

18.6 Working with Items in a Receipt Route

This section provides an overview of item-related tasks and discusses how to:

Set processing options for Receipt Routing Movement and Disposition (P43250).
Review the current operation for items.
Transfer items to operations.

18.6.1 Understanding Item-Related Tasks

You can monitor items from the moment that they leave a supplier's warehouse. For example, you can process shipments of items through transit, the dock, the staging area, and inspection before updating the status of the items to on-hand.

The receipt route for an item determines the series of operations through which you process an item after you take receipt. For example, if a receipt route includes four operations, such as transit, dock, inspection, and stock, the system enters the item in the transit operation when you enter a receipt. You must transfer the item to each subsequent operation in the route.

You can remove (disposition) items from a receipt route. For example, you might reject an item that does not pass inspection. In this case, the system removes the quantity that you reject from the receipt route. If you return an item, you can generate an order to replace the items.

You can review information about the transfer and removal of items in a receipt route. For example, you can determine the amount of time that a shipment of items was at the dock before it was transferred to stock. You can also review the quantity of items in a shipment that did not pass inspection.

18.6.1.1 Transferring Items to Operations

The receipt route that you assign to an item determines the series of operations through which you process the item upon its receipt (for example, transit, staging, and stock). The system enters an item into the first operation of the route upon receipt. You must transfer the item to subsequent operations in the route.

You can set processing options to determine the operations to which you can transfer items in a receipt route. For example, if the order of operations is staging, inspection, and stock, you can transfer items to:

The next operation only (for example, staging to inspection and inspection to stock).
Any subsequent operation (for example, staging to stock).
Any operation (for example, stock to staging).

When you transfer items to the last operation in a receipt route, the system updates the items to a received (on-hand) status.

18.6.2 Forms Used to Work with Items in a Receipt Route

Form Name	Form ID	Navigation	Usage
Work With Routing Statuses	W43250K	Receipt Routing (G43A14), Status Inquiry	Review the current operation for items. Transfer items to operations. Work with routing statuses.
Receipt Routing Movement	W43250L	Select a line item on the Work With Routing Statuses form, and then click the Select button.	Transfer items to operations.

Form Name

Form ID

Navigation

Usage

Work With Routing Statuses

W43250K

Receipt Routing (G43A14), Status Inquiry

Review the current operation for items.

Transfer items to operations.

Work with routing statuses.

Receipt Routing Movement

W43250L

Select a line item on the Work With Routing Statuses form, and then click the Select button.

Transfer items to operations.

18.6.3 Setting Processing Options for Receipt Routing Movement and Disposition (P43250)

Processing options enable you to specify the default processing for programs and reports.

18.6.3.1 Defaults

These processing options define the default information that the system uses when you are working with the Receipt Routing Movement and Disposition program (P43250).

1. Order Type (Optional)

Specify the type of document. This UDC (00/DT) also indicates the origin of the transaction. Reserved document type codes exist for vouchers, invoices, receipts, and time sheets, which create automatic offset entries during the post program. (These entries are not self-balancing when you originally enter them.) These prefixes for document types are predefined; do not change them:

P: Accounts Payable documents

R: Accounts Receivable documents

T: Payroll documents

I: Inventory documents

O: Purchase Order documents

J: General Ledger/Joint Interest Billing documents

S: Sales Order Processing documents

If you enter a document type, the system displays only the orders with the document type that you specify. If you leave this processing option blank, the system displays all orders.

You can create different versions that correspond to the different document types that you use.

2. Operation Code (Optional)

Specify the From operation code. The system displays only the orders that contain the From operation code that you specify. This UDC (43/OC) represents an operation or step within the receipt route.

18.6.3.2 Display

These processing options specify whether the system displays information such as operations that move quantity to inventory.

1. Move Quantity to Inventory

Specify whether the program displays operations that move quantity to inventory. Values are:

Blank: Do not display operations that move quantity to inventory.

1: Display operations that move quantity to inventory.

The system retrieves information about the operations that move quantity to inventory from the F43091 table. Review the operations that move quantity to inventory on the Receipt Routing Definition form. Operations that move quantity to inventory are designated by a check mark in the Stock column.

2. Show Shipment and Pack Information

Specify whether the system displays UCC 128 information. Values are:

Blank: The system displays UCC 128 information.

1: The system does not display UCC 128 information. If you enter 1, the system does not display the EPC Number field.

18.6.3.3 Process

These processing options specify which values the system uses for operations in the receipt route.

1. 'To Operation' Control

Specify the operation in the receipt route that the system uses as the To operation. Values are:

Blank: The system allows only the next operation in the receipt route to be selected.

1: The system allows only the next operation in the receipt route to be selected.

2: The system allows the current operation or any next operation in the receipt route to be selected.

3: The system allows any operation in the receipt route to be selected.

2. Last Status Code

Specify a last status code for replacement processing. If you are adding an order line for a replacement item on the purchase order, you can enter a last status code for the new order line.

Before you complete this processing option, review the order activity rules that you have set up, and also ensure that you have activated replacement processing.

To ensure that replacement processing is activated, review the Receipt Routing and Disposition form and make sure that the Replacement option is selected. If the Replacement option is not selected, the system will not create a purchase order for the replacement item.

3. Next Status Code

Specify a next status code for replacement processing. If you are adding an order line for a replacement item on the purchase order, you can enter a next status code for the new order line.

Before you complete this processing option, review the order activity rules that you have set up, and also ensure that you have activated replacement processing.

4. Replacement Line Type

Specify how the system processes lines on a transaction. The line type affects the systems with which the transaction interacts (JD Edwards EnterpriseOne General Ledger, JD Edwards EnterpriseOne Job Cost, JD Edwards EnterpriseOne Accounts Payable, JD Edwards EnterpriseOne Accounts Receivable from Oracle, and JD Edwards EnterpriseOne Inventory Management). The line type also specifies the conditions for including a line on reports and in calculations. Some examples of values, which have been defined on the Line Type Constants Revisions form, are:

S: Stock item

J: Job cost, subcontracts, or purchasing to the general ledger

B: General ledger account and item number

N: Nonstock item

F: Freight

T: Text information

M: Miscellaneous charges and credits

W: Work order

The system uses the line type that you specify for the new order line that represents the replacement item. You cannot use this processing option unless replacement processing is activated.

5. Enter the name of the function use for Tare/Pack Number Validation

Specify whether the system validates the tare number or pack number. Values are:

Blank: The system does not validate the tare number or pack number.

1: The system validates the tare number or pack number.

6. Credit Line Type

Specify how the system processes lines on a transaction. The line type affects the systems with which the transaction interacts (JD Edwards EnterpriseOne General Ledger, JD Edwards EnterpriseOne Job Cost, JD Edwards EnterpriseOne Accounts Payable, JD Edwards EnterpriseOne Accounts Receivable, and JD Edwards EnterpriseOne Inventory Management). The line type also specifies the conditions for including a line on reports and in calculations. Some examples of values, which have been defined on the Line Type Constants Revisions form, are:

S: Stock item

J: Job cost, subcontracts, or purchasing to the general ledger

B: General ledger account and item number

N: Nonstock item

F: Freight

T: Text information

M: Miscellaneous charges and credits

W: Work order

7. Option Default

Specify whether the system automatically selects all detail lines for receipt, which prevents you from having to manually select each detail line. Values are:

Blank: The system does not automatically select all detail lines for receipt.

1: The system automatically selects all detail lines for receipt.

8. Update Price in Receipt Routing

Enter a code that indicates whether the system will price the order at receipt time. Values are:

Blank: The system will not recalculate the purchase price at receipt time.

1: The system will recalculate the purchase price at receipt time based on the advanced pricing options that have been entered.

18.6.3.4 Versions

These processing options enable you to enter the version for each application. If you leave any of these processing options blank, the system uses version ZJDE0001.

1. Receipts by Purchase Order (P4312)

Specify the version that the system uses when you access the Receipts by Purchase Order program. You use the Receipts by Purchase Order program when you are moving items to an operation that is set up to move quantities into inventory. This application also uses the version to determine how to process license plate information.