Reconciling Material Usage with Receipts
Par location reconciliation begins with the Material Usage Reconciliation report (INS9070), which gathers all receipts from purchase orders and all issues from inventory for a specific par location over a specific period of time. The receipts and issues result from the Create Par Replenishment Requests process (INPGCDMD), which compares par location counts with the optimum quantity defined for the par location. If the count is less than the optimum quantity (presumably due to usage for a patient from the par location), a requisition, purchase order, or material stock request is created.
The Material Usage Reconciliation report also gathers the number of items from the par location that have been charged to a consumer. After collecting data, you can generate the Consumer Usage Reconciliation - Summary report to compare consumer usage with receipts and issues for the par location over a given period of time and identify any lost charges. For any given item in a par location, the issue and receipt quantity should equal the total quantity charged to consumers. This information is also collected for non-par locations, referred to in PeopleSoft as internal locations.
The Consumer Usage Reconciliation - Summary report lists the actual receipt transactions and usage that meet report request parameters. The report is a set of three detail reports: the Usage Detail report, Shipment Detail Report, and Receipt Detail report. The detail reports can be used in conjunction with the Consumer Usage Reconciliation - Summary report, Review Consumer Usage page, Review Shipment History page, and Receipt By Loc page to assist you in the manual process of researching items that do not reconcile for a location.
This topic discusses:
The design of the material usage reconciliation feature is based on the following assumptions:
Only items that have actually been shipped, depleted, and received are evaluated in the reconciliation process.
Reconciliation works with actual quantities shipped rather than with requested quantities.
When a replenishment request is created through a direct issue, requisition, or par location replenishment, the location must be specified on the request to be considered in the reconciliation process.
Only items that are selected for reconciliation at the par location level, the business unit level, or the SetID level are included in usage history and reconciliation processing.
To identify whether an item should be reconciled, the system first checks the reconciliation flag at the par location. If the item is not defined for a par location, the system checks the reconciliation flag for the item at the business unit level. If the item has not been defined for the business unit, the reconciliation flag for the item at the SetID level determines whether the item is reconciled.
All dispensing quantities are in the standard UOM specified for the item.
The system assumes that the standard UOM is the smallest UOM.
A charge code must be assigned to each item in the PeopleSoft item master database.
However, the design of the material usage and reconciliation feature assumes that charge codes and associated pricing structures are maintained in a third-party consumer billing or cost accounting system.
Material charge information is defined at the SetID, business unit, and par location levels. Items in both par and internal locations are available for reconciliation if they are defined as needing reconciliation at either the SetID or the par location level.
Values defined for the item at the SetID level become the default values at the business unit level. Based on the replenishment option, values defined at the business unit level or SetID level become default values at the par location level. If the item is replenished as stock, the default values come from business unit attributes. If the item is replenished as stockless, non-stock, or non-replenished, the default values come from SetID attributes. These attributes can also be overridden for each par location.
The par location is the defining entity for reconciliation setup information for par location items. Therefore, if the item attributes at the SetID level are modified after setting up par locations, the changes do not cascade to the par location level. If the item is not associated with a par location, attributes at the business unit level or SetID item level are the defining values.
Material usage reconciliation setup information at the SetID, business unit, and par location levels consists of the following fields and options.
Selecting a Usage Tracking Method
Setup includes the following fields and options:
Available values are Billing, Costing, and None.
Items tracked for billing or costing purposes must have a charge code assigned.
Items tracked for billing or costing purposes that are also replenished to the par location (Not Replenished check box not selected on the Define Par Location Groups page and Define Par Location - Line page) must be counted (Count Required check box selected on the Define Par Location Groups page).
Only items tracked for billing or costing are reconciled.
Assigning Charge Codes
Setup includes the following fields and options:
These codes identify pricing for an item or class of items.
Charge codes are for informational purposes only and can be used to assist you in consumer billing. This internal code is set up on the Charge Codes page.
Par location item charge code default values are derived from the Define Par Location - Line page.
Internal location item charge code default values are derived from the Define Business Unit Item - General: Usage page.
Items not defined at the business unit level are derived from the Define Item - General: Usage page.
Using the Reconciliation Check Box
Setup includes the following fields and options:
This option identifies whether items should be included in the material usage reconciliation of the par location, and thus reconciled.
If this check box is selected for an item, the UOM used for the item must be the standard UOM defined for the item on the Define Item - General: Common page.
The default status of the check box is clear.
Only items tracked for billing or costing are reconciled.
Reconciled items replenished to their par location (Not Replenished check box not selected on the Define Par Location Groups page and Define Par Location - Line page) must be set up with a replenishment control option of Par or Min/Max on the Define Par Location - Line page.
Note: For par location reconciled items, the Reconciliation check box should be clear when you initially stock an item in a par location. Once the par location is stocked, theReconciliation check box should be selected manually and the item reconciled as the stock is used, issued, or purchased for the par location. If the Reconciliation check box is selected for the initial stocking of the item, the reconciliation data for this item in the par location is inaccurate.
Assigning Charge Markup Percentages and Amounts
These charge markups are supported at the SetID-item level and the business unit-item level as a percentage or as a flat markup amount and are used as default values at the par location level.
Selecting Par Replenishment Options
Options include the following:
Available options are Stock, Stockless, Non-Stock, and Not Replenished.
The Not Replenished option can be applied to items that require unique usage tracking attributes but are not replenished to the par location.
The Create Par Replenishment Requests process ignores items that are not replenished.
The Not Replenished check box at the par location header level controls replenishment of the entire par location.
If the check box is selected, the entire par location is not replenished, regardless of the item-level replenishment settings. If the check box is clear, replenishment is driven based on the replenishment option defined for each item in the par location. If the item-level replenishment option is defined as Not Replenished, that particular item is not replenished. This check box does not alter the characteristics or definition of the par location in any way.
Setting Replenishment Controls
Options include the following:
Available options are Par, Fixed Order Quantity (FOQ), and Min/Max.
Items reconciled and replenished to the par location must be set up with a replenishment control method of Par or Min/Max.
The replenishment control method of FOQ does not produce accurate reconciliation results, because it does not replenish the item based on what is used.
This method always orders more than what was used and may cause misleading reconciliation results.
PeopleSoft Inventory uses the following criteria to determine the price displayed in the Last PO Price Paid field.
|
Item Status |
Method for Determining the Last PO Price |
|---|---|
|
Associated with a par location. |
Determined in part by evaluating the replenishment option of the item. |
|
Not associated with a par location (or if no par location is associated with the location). |
Derived from the Define Business Unit Item component using the PeopleSoft Inventory business unit. If the item is not defined at the business unit level, the last purchase price paid is derived from the Purchasing Attributes page using the SetID associated with the PeopleSoft Inventory business unit. |
|
Defined with the Stock replenishment option selected. |
Derived from the Define Business Unit Item component using the PeopleSoft Inventory ordering business unit from the par location header. If the item is not defined on the Define Business Unit Item page, the last purchase price paid is derived from the Purchasing Attributes page using the SetID associated with the PeopleSoft Inventory ordering business unit from the par location header. |
|
Defined with the Stockless replenishment option selected. |
Derived from the BU Specific Attributes page using the PeopleSoft Purchasing business unit from the par location header. If the item is not defined on the Purchasing BU Attributes page, the last purchase price paid is derived from the Purchasing Attributes page using the SetID associated with the PeopleSoft Purchasing business unit from the par location header. |
|
Defined with the Non-Stock replenishment option selected. |
Derived from the Purchasing BU Attributes page using the PeopleSoft Purchasing business unit from the par location header. If the item is not defined on the Purchasing BU Attributes page, the last purchase price paid is derived from the Purchasing Attributes page using the SetID associated with the PeopleSoft Purchasing business unit from the par location header. |
|
Defined with the Not Replenished replenishment option selected. |
Derived from the Define Business Unit Item page using the PeopleSoft Inventory business unit. If the item is not defined on the Define Business Unit Item page, the last purchase price paid is derived from the Purchasing Attributes page using the SetID associated with the PeopleSoft Inventory business unit. |
Researching lost charges involves auditing par location supplies for issues or receipts that were not charged to a consumer. For items in a par location or an internal location, the issue and receipt quantity should equal the total quantity charged to consumers.
Use the Consumer Usage Reconciliation - Summary and the Consumer Usage Reconciliation - Usage Detail reports as the basis of your research and to compare par location issues or receipts against consumer usage. The results are reports that show discrepancies between expected and actual charges for your par location supplies.
Run the reports as many times as needed to reconcile a location. Use the reports with the following inquiry pages to help you research lost charges and complete the manual reconciliation process.
The Review Shipment History page provides inquiries into material stock requests that have been shipped and depleted.
The page provides search criteria that include PeopleSoft Inventory business unit, location, item ID, ship date, and so forth. Totals are provided at the bottom of the page for shipped quantity and cost.
The Receipt By Loc (receipt by location) page provides inquiries into the receipt history for purchased items.
The page provides search criteria that include business unit, location, item ID, and receipt date. Totals are provided at the bottom of the page for receipt quantity and cost.
The Review Consumer Usage page provides inquiries into usage transactions.
The page provides search criteria that include PeopleSoft Inventory business unit, location, item ID, usage date, consumer ID, and service ID. Totals are provided at the bottom of the page for usage quantity and cost.
Possible reasons for lost charges include the following:
The item usage was not recorded for the service event.
This can be researched by returning to the consumer charge sheets and checking whether the item usage label was missed in the usage entry process.
The item was pulled but never used in the service event.
Cross-Par Location Item Lost Charges
Because the Cross Par Location Item Inquiry page conducts a search for items across par locations, an item can be pulled from one par location to be used in a procedure in another location.
If the item is usage-tracked, this usage causes an initial imbalance in the reconciliation of these two par locations. To correct this lost charge, when pulling the item, you need to identify that the borrowed item came from the lending par location. To do so, get an item usage label and attach it to the consumer charge sheet. Record the usage from the lending par location based on the item usage label.