Understanding the Recording of 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 or make adjustments to correct variances. The system updates the Item Ledger File table (F4111), the Purchase Order Receiver File table (F43121), and the Bulk Product Transaction File table (F41511).

When you record bulk product receipts, you can display all purchase order lines that have an open quantity or amount to be received, and record the receipt of a bulk product. An open quantity is the purchase order quantity minus the previous quantities received.

When you receive a bulk item, the Bulk Product Receipts form enables you to record temperature and density information and to calculate standard volume and weight. A bulk item is defined by the Bulk/Packed field on the Item Master form.

You can set a processing option to record differences in receiving as a temperature gain or loss, to recalculate the unit cost, or to receive as standard quantities for the items that were purchased in standard quantities.

You might want to receive the entire amount ordered and not perform a temperature or density conversion from ambient to standard. If you record a gain or loss, the amount is calculated as follows:

[(Standard Quantity − Ambient Quantity) ÃUnit Cost] − Temperature Gain or Loss

This amount is debited to the temperature gain or loss Automatic Accounting Instruction (AAI) account, with the offset as a credit to Inventory AAI. Quantities are stored as a temperature gain or loss.

If you choose to recalculate the unit cost for bulk products that require a temperature conversion, the unit cost is recalculated as follows:

Unit Cost = (Extended Cost)/(Standard Quantity)

The unit cost is recalculated in receiving, and no variance exists in voucher match. The difference is recorded to the Item Ledger File table (F4111) and the Bulk Product Transaction File table (F41511).

If you choose to receive as standard quantities, the items are purchased in standard quantities and the product is received as if it were a packaged product. No gain or loss occurs, and no adjustment to unit cost is made.

Additionally, you can access the Dip Volume Calculator form or the Weighbridge Information form from the Purchase Order Receipts form via the Row menu if you need to calculate the volumes to enter. You can also access the Four-Point Analysis Maintenance form from the Purchase Order Receipts form via the Row menu if you need to calculate gains or losses.