Receiving Inventory and Non-Inventory Services

The receiving process is used to track purchases that are received as the result of a purchase order by recording basic information such as the quantity received, receiving location, packing slip details, carrier, and so on.

When regular inventory items and non-inventory items, such as labor or miscellaneous services, are delivered to your organization, they must be added into the system by creating a receiving record. The system uses the R equire Receipt for Services parameter in the Purchasing Master config to determine which purchase lines are displayed in the picklist prior to accepting the inventory and non-inventory items and services.
  • If the parameter is set to YES, then all inventory and non-inventory line items are included in the picklist.
  • If the parameter is set to No, then only the inventory line items are included in the picklist; labor and miscellaneous non-inventory type services are excluded.
Note: There may be some instances where a vendor may send an invoice prior to an item being shipped or received. In cases such as this, an invoice for the purchase order line item can be created however, the invoice cannot be processed until the line item is received.

Once the picklist is created with the appropriate line items, the user would then select the items in the picklist to create the receipt lines. A detailed description of the receiving process is described below.

The receiving process tracks delivery of inventory items and non-inventory services through several distinct steps from the time of arrival until they are entered into the system in. The steps in the process allow for the actual receipt, inspection of items and services, and acceptance. The process steps include:

  • Record the delivery of items or services — create a receipt record which holds basic delivery information. This step does not include details about the items or services.
  • Match items or services to the purchase order — review items and services on the purchase order and select, from a pick list, the items and services that were delivered. Items and services are counted and compared to what was ordered.
  • Receive and accept the items — On the Receipt record the user has the option to select either the "Receive All and Accept" or the "Receive All and Accept (Batch)" hyperlink as long as an item and service in the Open Receipt Lines zone is not tracked or lot managed. Selecting the "Receive All and Accept" hyperlink tells the system to set ALL regular inventory and non-inventory services to a Received status and then to look at the "Accept on Receipt" value defined on the stock item or service for that receipt line.
    • Receipt lines where the stock item record or service indicates an “Accept on Receipt” value set as Yes are automatically accepted into the system which completes the acceptance process for those receipt lines.
    • Receipt lines where the stock item record or services indicates an "Accept on Receipt" value set as NO display in a pick list. For these receipt lines the user selects which receipt lines to accept. Clicking Accept indicates the selected lines are accepted into the system. Clicking Cancel indicates the selected receipt lines are not accepted and are moved to the In Receipt Lines zone of the Receipt record and the user will need to manually accept the receipt line. Also, receipt lines not selected when either Accept or Cancel are clicked are not accepted and will need to be manually accepted.
    Note: Receive All and Accept (Batch) hyperlink works the same way as described above but is done through batch processing. This option is suggested if a lot of inventory or non-inventory services are being received at one time.
    Note: The system adjusts inventory quantities for the items and non-inventory services accordingly. Depending on your system configuration and business practices, the system may also include taxes for stock items, labor, and miscellaneous services at the time of receipt.
  • (alternate) Create a shipping deficiency entry for receipt line items when there is a problem with materials or services received in the shipment. The deficiencies can be edited, added to, or resolved directly from the Shipment Deficiency zone of the Receipt Line record.
  • (alternate) Return the items — As needed, return items for replacement or credit. When returns are processed, the appropriate costing of inventory and non-inventory adjustments are made to account for the credit.
  • Complete the Receipt Header - this can be performed when there are no more Open Receipt Lines. EXCEPTION: Receipts with Open lines can be completed IF the Open Receipt Line has Cancelled Accept Lines. Cancelled Accept Lines return the Receipt Quantity back to zero.

Quick Receive

Your organization may not require a multi-step processing to receive items into your inventory. In these cases, the system includes a feature to receive and accept the items in one step. This feature is only available if it is enabled in your system implementation. If the stock item has “Accept on Receipt” set as Yes, one-step receiving is allowed.

Forced Complete

In some cases, the quantity ordered on the purchase order may never be fulfilled. For example, if your organization ordered a quantity of 10 of items that were discontinued and the vendor only had 5 to send to fulfill the order. The system provides the ability to receive the five items then to force the system to consider the order complete. This processing flags the system that the line item receipt quantity is complete so that the purchase order does not stay open. After receiving partial items, select the Force Complete action on the Receipt record. Completing this action marks the purchase order line item as Fully Received and transitions it to the Closed state.