Understanding the Receiving Business Process

PeopleSoft Purchasing provides components that enable you to receive goods, create receipts, and enter receiving details. These components facilitate the tracking of receipt information such as distributions, assets, and serial IDs.

Receiving goods using PeopleSoft Purchasing can make the transfer of receipt information to PeopleSoft Inventory, PeopleSoft Asset Management, and PeopleSoft Manufacturing virtually seamless.

The PeopleSoft Purchasing receiving business process enables you to receive, inspect, return, and put away received goods. Receiving rules are defined in the business processes leading up to the actual receipt. These processes include setting up items and creating requisitions and purchase orders.

When stock arrives at the receiving location, you receive it using the PeopleSoft Purchasing Receiving component. You can receive inventory or non-inventory items, with or without associated purchase orders. Direct ship orders are not eligible for receiving in PeopleSoft Purchasing, because they are normally sent directly to a customer site and received there.

Here is the basic flow of the receiving business process:

  1. Create receipts using online pages or batch processing.

    • Use the online Maintain Receipts - Receiving page to receive, accept, and reject shipment quantities. You can use this page to receive items with associated purchase orders or without associated purchase orders, as well as maintain existing receipts.

    • Use the Receive Load process (PO_RECVLOAD) to load batches of purchase order receipt information gathered using electronic data collection (EDC) and ASR EIPs, and, if your installation includes PeopleSoft eSupplier Connection, supplier-entered advanced shipping notices (ASNs).

  2. If the stock is to be tracked as an asset, enter asset information, including serial, asset IDs, and asset tag information, using the Asset Management Information page.

  3. Enter override putaway information for the stock using the Inventory Putaway Information page.

    You can also use this page to enter serial ID and lot ID information.

  4. Use the Inspection page to inspect the stock, if inspections are performed as a separate business process in the organization.

    In this case, the Insp Qty field on the Maintain Receipts - Receiving page is unavailable for entry during the receiving transaction, and received stock is putaway to an inspection location where you will perform the inspection process.

    If the organization performs inspections as a separate business process, you can enter override putaway information using the Inspection & Putaway Information page.

    Note: If this is how you want the receiving agents to process shipments and receipts, you must select the Separate Inspection check box when setting up the purchasing definitions on the Purchasing Definition - Business Unit Options page.

  5. Use the Delivery component to view and enter delivery details about the receipt for non inventory transactions.

  6. Use the Receipt ChartFields - ChartFields page to view and enter distribution detail overrides for the receipt.

  7. Use the Return to Vendor - RTV page to create and enter details for an RTV.

    If you are already using the Inspection page, you may use the RTV Setup page to create the RTV without having to leave the component. However, to modify RTV detail information, you must be on the Return to Vendor - RTV page.

  8. Use the Receive Interface Push process (PO_RECVPUSH) to transfer receipt information to the staging interface tables for use by the inventory putaway process, asset load process, and manufacturing routing process.

    In conjunction with the process, the system can launch the Close Short process. If the Run Close Short check box is selected when the receipt is saved, and one or more of the receipt lines have the Close Short check box selected, the system calls the Close Short process when it runs the Receipt Push (PO_RECVPUSH) process. The Receipt Push process deselects the Run Close Short check box on the receipt header after the Close Short process has run.

    The creation of receipt-landed cost transactions is another function performed by the PO_RECVPUSH process.

  9. Use the Close Receipts process (PO_RECV_COM) to close receipt that have been interfaced to assets, inventory, or manufacturing (if required) and matched (if required).

Receipt statuses are maintained at the receipt header, line, and distribution levels. After you've entered the receipt header information, selected the purchase order lines and schedules to be received, entered the quantities, updated pertinent asset information, input putaway information, and saved the receipt, the save time editing on the receipt adjusts the appropriate receipt statuses.

Receipt Header Status Values

Status Definition

Open

Not all edits have passed. One or more receipt lines are in Open status.

Received

All edits have passed. All lines are in Received or Canceled status.

Hold

Receipt is on hold until released by user.

Moved

Receipt has been processed by RECVPUSH, which creates the landed cost transactions for new receipts, and may interface them to PeopleSoft Asset Management, PeopleSoft Inventory, or PeopleSoft Manufacturing.

Closed

All receipt lines have been moved and matched (when required). All interface requirements have been fulfilled and no further processing is required.

Canceled

All lines are canceled. Canceling cannot be reversed.

Receipt Line Status Values

At the line level, the status changes to Received only when all exceptions for the line have been addressed. This means that serializations have been completed and lot-control information has been provided. If the exceptions have not been addressed, the affected lines remain in Open status.

Only when all lines on the receipt have a status of Received does the receipt header have a status of Received. If any receipt lines have a status of Open, the receipt header has a status of Open.

When you save the Maintain Receipts - Receiving page, the system checks for over shipments of items for which the Reject Quantity Over Tolerance check box is selected on the purchase order schedule.

PeopleSoft Purchasing takes into consideration the purchase order schedule quantity, the current receipt quantity, and any quantity previously received for the purchase order schedule. When the quantity previously received, plus the current receipt quantity is greater than the purchase order quantity, the difference is compared to the value in the Qty Rcvd Tolerance % (quantity received tolerance percent) field, specified on the Purchase Order Schedule page.

When the tolerance percent is exceeded, the Qty Status (quantity status) field on the Line Status Details page is set to Over Shipment, and the system displays a message indicating a quantity not within tolerance. The tolerance check uses the accepted quantity, which is derived by subtracting the reject quantity from the received quantity.

The system performs this kind of edit for dates, serialization, and lot control, as well. You can save the receipt even if the appropriate action has not been taken. The line status remains Open until the serial and lot statuses have been completed and any other necessary adjustments have been made.

On the Purchasing Attributes - Purchasing Controls page, you can specify, at the item level, the number of days a receipt can vary from the scheduled due date indicated on the purchase order. If the receipt date is prior to the due date of the purchase order schedule minus this tolerance value, then the receipt line is identified as early. If the receipt date is past the due date of the purchase order schedule plus this tolerance value, then the receipt line is identified as late.

Use the Partial Qty field on the Purchasing Attributes - Purchasing Controls page to specify the preference for how partial shipments are handled by PeopleSoft Purchasing. You can specify that you want to be able to accept partial shipments when receiving items. Valid options, as well as how they are handled by the system during receipt, are explained in the following table:

Partial Receipt Flag Value

Result when Partial Quantity is Received

Recvd (received)

No error and no warning are issued. Line status is set to Received.

Recvd/Warn (received/warning)

Warning message is issued. Line status is set to Received.

Open

No error and no warning are issued. Line status set to Open.

Open/Warn (open/warning)

Warning message is issued. Line status set to Open.

Error

Shipment cannot be received. Error message is issued. Line status set to Open.

Directed putaway is a method of putting away stock that helps optimize available storage space. Implementing directed putaway can also enable you to create more logical putaway plans. In designating stock for directed putaway, you can select very specific rules about the way in which stock should be put away, such as according to volume and weight constraints. In addition, you can specify that similar items be stored together or that certain materials always be stored in the same area of the warehouse.

In PeopleSoft Receiving, you use the Directed Putaway Locations page to confirm default directed putaway information for an item or override the existing default rules.