Understanding Bulk Product Receipts

You record the receipt of bulk products requested on a purchase order as they arrive at the depot. You can confirm the receipt of the products requested on the purchase order, record the volumes received, and make adjustments to correct variances.

You can also calculate any gains or losses that might have occurred during transportation, such as losses due to spillage, theft, and faulty meters. To do so, you perform a four-point analysis. Four-point refers to the opening and closing readings at a supplying location, and the opening and closing readings at a receiving location. Analysis refers to the variance between the two results (that is, the gain or loss). You perform a four-point analysis primarily to determine the quantity of stock lost in transit during a lengthy voyage, but you can record the data for any movement.

If you take ownership of the product when it is loaded onto a vehicle at a supplier's depot, you can track the quantity loaded onto the vehicle and record it as a liability. Then you can calculate and record any gain or loss that might have occurred at the time of delivery at the depot.

See also:

• "Using Receipt Processing" in the JD Edwards EnterpriseOne Applications Procurement Management Implementation Guide.