Understanding Cascading Receipts

The PO Receipts program (P4312) enables you to automatically apply the total received quantity of an item to multiple purchase orders in a supplier's shipment. This process is known as cascading receipts functionality. Provided that you set the processing options for entering receipts by item and for activating the cascading receipts functionality, you do not have to manually apply quantities to multiple purchase orders for the supplier. The system provides you with all the open purchase orders for the item that are within the same branch/plant, are purchased by the same supplier, and are sorted by promised delivery date.

To begin using cascading receipts functionality, you first enter the total quantity of an item that you have received. Next, you select the first purchase order line to which the system automatically applies the total received quantity. The system continues applying the total received quantity by promised date until all open purchase order lines for the item and supplier have been satisfied.

If you use tolerance checking for cascading receipts functionality and a balance of total received quantity exists, then the system evaluates the total received quantity that remains. If the quantity is less than the tolerance quantity or percentage that you specified in the appropriate processing option on the Cascade Receipt tab in the PO Receipts program (P4312), then the system applies the balance to the last purchase order line. If you do not use tolerance checking for cascading receipts functionality and a balance of total received quantity exists, then the system applies the balance to the next open purchase order for the supplier.