Receiving End Items from Suppliers

Receiving the end items back from the supplier is a two-step process, but the process can be streamlined so that it is only one step. The process to receive the end items using the two-step process is:

Receiving records the receipt of the end items back from the supplier.
Production records the operations completions and scrap for the received end items.

If you setup subcontract streamlining in PeopleSoft Purchasing, then the process to receive end items is that the Receiving functionality records the receipt of the end items back from the supplier. Upon saving the receipt the system will perform the purchase order receipt and the production ID completion in one step by automatically generating electronic data collection transactions for the subcontracted completions data. To specify that you want to use subcontracting streamlining, select the Interface Receipt and Subcontract Streamline check boxes on the Maintain Receipts - Receiving page.

See Managing Receipts.

Once the supplier has completed the subcontracted work, the end items are returned to Receiving. To receive end items back from the subcontractor, use the Maintain Receipts - Receiving page.

During the receiving process, the end items can be inspected and accepted or rejected from the supplier. Receiving assigns one of these indicators to the rejected quantity when recording the receipt:

Field or Control	Description
Return for Replacement	Return the end item to the supplier with the expectation that it will be replaced. The return quantity is equal to the reject quantity with a reject action of Return to Replacement. The received rejected quantity for production is the received quantity and the received rejected quantity is zero. PeopleSoft Purchasing does not record the replacement quantity as either accepted or rejected.
Return for Credit	Return the end items back to the supplier for a credit. The credited amount is the subcontracted service charge. PeopleSoft Purchasing records the Reject quantity as scrap on the production Subcontracted Receipt page.

Field or Control

Description

Return for Replacement

Return the end item to the supplier with the expectation that it will be replaced. The return quantity is equal to the reject quantity with a reject action of Return to Replacement.

The received rejected quantity for production is the received quantity and the received rejected quantity is zero.

PeopleSoft Purchasing does not record the replacement quantity as either accepted or rejected.

Return for Credit

Return the end items back to the supplier for a credit. The credited amount is the subcontracted service charge.

PeopleSoft Purchasing records the Reject quantity as scrap on the production Subcontracted Receipt page.

This table summarizes the receiving reject actions and effects:

Action	Receiving Record	PS_RECV_SUBREC_MG	Purchase Order Line
Return for Replacement	No reject qty	No scrap	No update
Return for Credit	Scrap the qty	Scrap the qty	Update

Subcontracted receipts to stock are prevented if the end item or a component of the end item is on hold and the order is for regular production. Subcontracted receipts to intermediate operations are allowed for regular production.

The PeopleSoft Purchasing receipt process updates production to indicate that the end items have been received. You cannot record operation completions or scrap until the end items have been received.

In addition, you cannot close production until the quantity of end items sent to the supplier is equal to the quantity of scrapped and completed end items received back from the supplier and recorded complete in production.

PeopleSoft Purchasing can optionally receive end items using electronic data collection. Electronic data collection transactions for manufactured end items automatically record the subcontracted completions data. You do not need to record completions in the Subcontracted Receipt pages for these subcontracted end items. After the transactions are recorded and staged, run the Completions/Scrap Update process to update the production balances.