Receiving Purchase Orders

The Receive transaction handles both the receiving and un-receiving of purchase orders. In addition, the transaction allows users to indicate the location where items to be received will be placed and the specification of lot information, if required.

Users may drill into the purchase order prior to performing the receipt in order to obtain additional information. Purchase orders may be received in full or in part. In situations where order quantities are to be backordered, the vendor record and Item Master record must be checked to allow backordering.  

Configuration

Prior to receiving a purchase order in Deacom, several pieces of master data will need to be setup. In most cases, companies will have already completed these set up steps during the implementation process. The required configuration setups are indicated below.

  • Vendors - must be entered into the system and validated.
  • Facilities/Location Types/Locations - these need to be set up in order to indicate where material is being received.
  • Items - every purchase order needs an item added to it and that item must be checked as "Purchasable" and have a "Purchase to" account. Companies also have the option to set default Location Types and Locations on items.
  • QC Groups/Tests - optional (used when QC is required for purchased materials.)
  • Purchase Orders - purchase orders must be entered.
  • Restricted Receiving Unit - optional (used when companies want to restrict the units of measure that can be selected, per item, when receiving purchase orders.)

Process

Receiving a Purchase Order in full

The list below describes the steps necessary to receive a purchase order. Additional steps to handle different receiving scenarios are listed in the appropriate sub sections.

  1. Navigate to Purchasing > Receive.
  2. If the number of the PO to be received is known, use the "Purchase Order" search box to select the order. If the PO number is not known, the "Show Orders" button can be a used to display a list of un-received orders. Selection fields on the pre-filter, such as Vendor and Facility, can be used to filter the list that will be generated when using the "Show Orders" button.
  3. Once the appropriate information has been selected on the pre-filter click the "Continue" button. If a specific PO number was specified on the pre-filter, the user will be presented with the Purchase Order Lines form. If using the "Show Orders" button, the system will generate the "Orders to Receive" list. Users will then select the appropriate PO from the list and click the "Continue" button to display the Purchase Order Lines form.
  4. Verify the quantities to be received, make any necessary modifications, follow the steps listed in the necessary section below, if using that feature, then click the "Receive" button to complete the process.

Note: If the attached Vendor has "Require Manufacturing Vendor" checked and a certification date entered for "Approval Expires", any parts received in a Purchase Order that are outside of this certification's date will be automatically sent to Quarantine.

Partially receiving Purchase Orders

In situations where the ordered quantity on the purchase order line will not be fully received, a partial receipt is performed. The steps to perform a partial receipt are listed below.

  1. On the Purchase Order Lines form, select the PO line that will be partially received.
  2. Click the "Modify" button and adjust the receive and backorder quantities appropriately.
  3. If additional PO lines are to be partially received, select the appropriate line and repeat the procedures in step 2.
  4. Once all the quantities have been entered correctly, save and close the Purchase Order Lines form to return to the Receive form, then click the "Receive" button to complete the process.
  5. If backorder quantities were entered, the system will create a separate purchase order for these amounts and display the order number on screen. Note: When performing partial receipts, backordered quantities may be set to zero depending on the situation. As indicated previously, in situations where order quantities are to be backordered, the vendor and item master record must be checked to allow this. For vendors, the "Allow Backorders" flag must be set on the General tab of the vendor record. For items, the "Allow Backorders When Receiving" flag must be set on the "Properties" tab of individual items. The "Allow Backorders When Receiving" flag is set to true by default so users will only need to uncheck the flag for items that will not be backordered.

Notes:

  • A maximum of 99 backorders are allowed for individual purchase orders. If a user attempts to create more than 99 backorders they will receive a message: "Failed to generate backorder for order. This is backorder 99, no further backorders will be created for this PO." Note that the system will produce a new base purchase order number when the backorder number goes over 99.
  • Pre-payments may be entered via the Accounting > Manual Checks transaction by selecting the "Pre-payments" in the report type box on the pre-filter. Note that when creating a backorder for a purchase order that has been pre-paid, the system will apply any pre-payment overpayment to the backorder at the creation of the backorder. Specifically, when partially receiving a PO that has been pre-paid and the payment is larger than the remaining total due, the balance of the payment is applied to the backorder. This allows all PO's to have appropriate balances and users can easily see what action is still required for each purchase order.
  • The purchase order backorder functionality allows additional backorders to be created after un-shipping the original order and canceling backorders. The system checks for the most recent backorder and checks to see if it is cancelled. If it is, an incremental backorder number is created. If the most recent backorder is not canceled, no new backorder is created.
  • If a backorder is created when receiving a Purchase Order, user fields are also copied to the backorder.
  • On the Receive Purchase Orders form, notice there is a new Header UDF button. Click that button to view/modify all of the PO user field values that had been set previously.

Receiving Purchase Orders via WMS

Purchase Orders may also be received by using the handheld devices with the WMS app. By either scanning or manually typing the Purchase Order number, the scanner form will automatically be populated with the first line item on the PO together with the Part Description, ordered quantity for that line and, if specified, the item's default Location. This functionality allows for inbound orders to be received directly on the shop floor and not require a terminal be set up.

Note: Version 16.02.006 introduced an optional Item Master default Receive Location that will be used prior to the item's default Location. Additional information is available via the Location field description on the Purchasing > Receive page.

  • Dashes must be omitted if typing the number manually. If the selected PO is already marked as received, the WMS will find the first open back order for the selected PO.
  • The "User Lot" field on the screen will indicate whether a Lot must be specified or will be provided by the system. If entering the number manually, the user will need to press the "Enter" button on the scanner for the first line on the PO to display.

Below are the basic steps necessary to receive a Purchase Order in WMS:

  1. Select the Receive PO function on scanner, click "Continue".
  2. Scan the barcode of the Purchase Order or manually enter the PO Number. The system will automatically populate the remaining fields with the first line item on the PO together with the part description, ordered quantity for that line and, if specified, the item's default Location.
  3. Select the Part Number being received.
  4. Ensure the quantity is correct (edit if necessary).
  5. Click "Next" and receive a prompt to print labels. Enter the quantity of labels to print.
  6. Click "Print" and grab the label.
  7. Repeat steps 3 - 6 for each additional line.
  8. Once all items have been received, click "Save" to receive all items on PO.

Once the Purchase Order has been received, the Lot(s) should physically appear in inventory as well as financially in the General Ledger. Refer to the Sample Accounting Postings for examples on how Purchase Order receipts affect the GL.

Receiving Lot required items

Items in DEACOM may be marked to require that a User Lot be specified during receipt. In this case, the appropriate PO lines/items will display the words "Lot required" on the receiving form. The steps required to specify a user lot are listed below.

  1. On the Purchase Order Lines form, select the first PO line that indicates "Lot required" and click the "Modify" button.
  2. On the Edit Quantity form enter a value in the field marked "Lot".
  3. Click the "Save" and "Exit" buttons to commit the change and close the Modify Quantity form.
  4. If additional PO lines require a user lot, repeat steps 1-3.
  5. Once all the lot information has been entered correctly, click the "Receive" button to complete the process. Note that items not requiring a user lot number will display the word "System" indicating that the appropriate lot number will be generated and assigned automatically on receipt.

Notes:

  • In cases where a user lot is not required during receipt, the word "System" will be displayed in the lot field on the Modify Quantity form. In this case, the system will assign a sequential user lot value. Users however may still elect to enter a unique user lot value, if desired, even though the system does not require it.
  • Note that the security setting "Purchasing -- edit user lot" controls if the user lot field is disabled during PO receipt, within the main application and in the Warehouse Management System.

Splitting lots during receipt

In situations where lots will be split upon receipt, the "Split Lot" button located on the receiving form may be used. The steps to split a lot are listed below.

  1. On the "Purchase Order Lines" form select the appropriate PO line and click the "Split Lots" button.
  2. Once the "Split Lot" button has been clicked, the user will be presented with the Split Lot form. Enter a value in the "Number of Lots" field to indicate how many lots will be created as a result of the split.
  3. When finished, click the mouse outside the field or hit either the Tab or Enter key on the keyboard. The system will create the appropriate lines and split the quantities equally based on the number of lots value entered.
  4. If user lots are required, enter the appropriate information and adjust any quantities, if desired.
  5. Once all information has been entered, click the "Save" and "Exit" buttons to complete the split.
  6. If additional PO lines are to be split, repeat steps 1-5.
  7. Once all the information has been entered correctly click the "Receive" button to complete the process.

Notes:

  1. Users have the option to set the backorder quantity on the last line when using split lots. The process works as follows:
    1. On the Purchase Order Lines form, the user will modify the appropriate line and set the backorder quantity.
    2. Next, the user clicks the "Split Lot" button.
    3. Once the user has split the lots and hit the "Save" button on the Split Lot form, the user will be returned to the Purchase Order Lines form, where the backorder quantity will be displayed on the last line.
  2. Beginning in version 16.06.020, the splitting of lots can be undone by using the "Delete Lot" button on the Receive Purchase Order form.

Receiving Catch Weight items

Items marked as "catch weight" on their Item Master are considered to have a variable weight. The default weight is specified on the item master but the actual weight will be entered during receipt. The steps necessary to enter catch weights upon receipt are listed below. Catch weight items can also be received via the Receive PO transaction in the DEACOM WMS Application. For steps on receiving catch weight parts, refer to the Using Catch Weight Parts Best Practice page.

Receiving Serialized Items

Items marked for "Unit Serialization" or "Container Serialization" on their Item Master will require serialized information to be entered upon receipt.

Receiving Purchase Orders and creating Master Lots

Originally only available when using the scanner, starting in version 15.04.030, users can now create a Master Lot for received material or receive directly into an existing Master Lot. This option comes in handy when, for example, a manufacturing company receives less-than-pallet quantities of multiple types or variations of materials on the same purchase order. Upon receiving, they deem it more efficient to have these items stacked on the same pallet and moved together to the same storage and use areas. Through grouping these items under a Master Lot barcode while still maintaining individual item quantities, part numbers, and traceability, the receivers will save time and storage space while decreasing risk of inaccuracy by moving this pallet of items as a single entity. For information on creating Master Lots upon PO receipt, refer to Creating and Using Master Lots.

Un-receiving Purchase Orders

Only Purchase Orders that have not been invoiced may be un-received. If necessary, Purchase Orders can be un-invoiced and then un-received. Separate security exists to control access for PO invoicing and un-invoicing. Below are the steps necessary to un-receive a purchase order:

  1. Navigate to Purchasing > Receive.
    • If the number of the PO to be un-received is known, use the "Purchase Order" search box to select the order.
    • If the PO number is not known, click the "Show Orders" button on the Receive filter, change the "Show Orders" filter to "Received", and select the order to be un-received.
  2. Once the order to un-receive has been identified, click "Un-Receive" on either the Receive filter or the Orders to Receive form.
  3. A Please Confirm prompt will appear “Are you sure you want to un-receive purchase order xxxx-xx-xxxxx?” Click "Yes" to continue.

If any of the items on the purchase order require a User Lot (as indicated by the "Lot required" message in the PO Receiving process), the system will display the Apply Inventory form with all the appropriate Lots for this Part. Users will then select the appropriate Lots and quantities and click the "Apply" button to complete the PO un-receipt process. If none of the items on the Purchase Order require a User Lot, the Apply Inventory form will not be displayed and the PO will be un-received automatically after the "Un-receive" button is clicked.

Users with the security access "Purchase orders -- un-receive" may un-receive purchases. Users cannot change the quantities to be un-received. The system will un-receive the exact quantities that were received, using the same date as the original receipt. The system will also attempt to un-receive the original lots if they are still available. Lots that are shipped to customers, consumed in the manufacturing process, or are in-transit, via Inter-Company Transfers, will no longer be available for un-receiving. If the original lots are not available, a warning message will appear stating that the original lots are unavailable and the next available lots have been used instead. When un-receiving a PO, the system excludes lots with an fi_date (date material was received into inventory) later than the received date.

Notes:

  1. When un-receiving a Purchase Order whose original lots have been modified, DEACOM automatically adjusts in copies of the original lots, adjusts out the remaining modified lots, and un-receives the Purchase Order, if possible. This feature supports situations in which the un-receipt of materials has taken place after the lot has gone thru QC and is released to inventory.
  2. The "Un-Invoice/Un-Receive" button, available on the Receive Pre-Filter and Purchase Invoicing Pre-Filter, beginning in version 17.03.002, allows users with the appropriate security to perform both actions at once.

Entering Purchase Orders to Clear Previous PO Receipt

Negative Purchase Orders can be used to clear a bad PO receipt when unable to un-receive the PO. An example of a bad PO would be one received in full, but only 19,000 of 20,000 ordered item arrived. Another example is if the cost of the original lots was incorrect when received in actual cost mode or if the period that the PO was received is now closed.

Receiving additional quantities on Purchase Orders

The "Over Receipt % Limit" field controls whether quantities that exceed the PO quantity may be received and is located both in Purchasing > Options and on the Item Master General 2 tab. This field defines the percentage of the original order quantity that may be received in addition to the original order quantity. The percentage defined in Purchasing Options provides the default when new items are created, but individual parts may be modified to contain a unique percentage.

In order for this limit to prevent receipt quantities above the specified percentage, the "Enforce Over Receipt % Limit" flag in either Purchasing > Options or Item Master General 2 tab needs to be checked. Users with the security access "Purchasing -- exceed PO receipt qty limit" may override the overage limit. As stated, the "Enforce Over Receipt % Limit" flag is located both in Purchasing Options and on the Item Master. The field in Purchasing Options provides the default when new items are created, but individual parts may have this box unchecked if necessary.

Receiving items with Pre-Receipt QC entries

DEACOM contains a Pre-Receipt QC option using Vendor provided QC test results. When Purchase Orders are received, the system checks to see if there is a Pre-Receipt QC record pointing to the Purchase Order(s) selected. In this case, the system attempts to match the Pre-Receipt QC record to the lines on the Purchase Order using the criteria specified in the "Verifying QC results upon receipt" section on the Entering Vendor Provided Pre-Receipt QC Results Best Practice page. Additional information on the the different methods for performing Pre-Receipt QC is available via the Performing Pre-Receipt QC Testing page.

Receiving items requiring Manufacturer Approvals

Deacom offers the ability to configure Vendor Cross Reference Parts that require approvals at the Manufacture level.

  • This was designed in situations where industry requirements necessitate companies to hold approval at the item level from the manufacturer,  meaning, for example, that they are approved to buy Raw Material 1 from Manufacturer A. The company does not care which Vendor they purchase from, which means after a Manufacturer for Raw Material 1 is approved, that product can be purchased from that Manufacturer through any Vendor.
  • When entering a Purchase Order, the company may need to check that the manufacturer is approved and certification expiration dates have not expired. If the Manufacturer is not approved or certifications have expired, then they will request the manufacturer to complete approval documents and provide certifications/updated certifications but still allowing them to complete the PO entry process and sending necessary paperwork to keep the purchasing process moving.
  • In this scenario, the PO process may continue while waiting for the approval documents, by allowing the receipt of purchase order lines, but automatically sending the received item lots to "quarantined" inventory in Deacom.

In Deacom, this is accomplished by using the Vendor Cross Reference Part feature and configuration as indicated below. Note: While the process described above does not depend on which Vendor the approved material is purchased from, the Deacom system needs to have a record and correlation between the Vendor and the Item, so that we can configure items purchased from Vendors to require the manufacturer approval process and approval dates. The approval date would correspond to the approval date for the product provided by the manufacturer.

Configuration

  • Purchasing > Vendor > General tab - "Require Manufacturing Vendor" field. Check this to indicate that the "Manufacturing Vendor" field on the Edit Purchase Order Line form is required when selecting this Vendor.
  • Purchasing > Vendor > General tab - "Approval Expires" field- Enter the date that the manufacturer approval for items is set to expire.
  • Inventory > Item Master > 'select an item on filter and hit View' > View Vendors > 'select an item' > Modify > General tab - "Approval Expires" field. Enter the date the manufacturer approval for this specific vendor part is set to expire. The system will evaluate both this field and the "Approval Expires" field when receiving purchase order lines for this vendor part.

Process

  • PO Entry - When entering a purchase order for a vendor that has "Require Manufacturing Vendor" checked, the following occurs:
    • On the PO line, the Part Number Searchbox will be disabled, and he Manufacturing Vendor field will become required and enabled,.
    • The Vendor Part Search Box will be disabled until a Manufacturing Vendor is selected.  Once a Manufacturing Vendor is selected, the Vendor Part search box will become enabled.
    • The Vendor Part Searchbox will be filtered to only displays records where the Manufacturing Vendor ID matches the corresponding Vendor Part Cross Reference ID.
  • PO Receipt - If either approval date is less than the received date of the purchase order, lots for purchase order lines with the expired vendor cross reference part will be automatically received in quarantine. Once the approval paperwork/process has been completed, these lots may be moved from quarantine into regular inventory. Companies can go back into the Vendor and Vendor Cross Reference Part records and update the necessary Approval Expires dates.