Quantity Control Processing

Quantity Control is the only required step in the receiving process.  The process of entering a Quantity Control transaction should not be confused with the physical counting of merchandise.  Even if the receiving type indicates that a physical count is not necessary, the Quantity Control conversation must be used to update the stock balances.

The Quantity Control conversation allows the entry of different counted quantities per parcel and sums the quantities to give a total counted quantity.  The breakdown of quantities per parcel is used to print identification tags that will be used to precisely identify each parcel.  The Quantity Control conversation also permits access to the P.O. Container Receipt conversation, whereby the entry of received containers updates container balances if container control processing is enabled (determined by Reference File category N18).  Please note that this conversation will only be displayed if an external container has been defined for the part.

The system allows two approaches to quantity control decision reporting:

·     A physical count of the receipt line item is required.  The accounting department can perform invoice matching only on quantity-controlled receipts.

·     A physical count of the receipt line item is not required.  Invoice matching may be performed without waiting for a physical count to be completed. However, quantity control needs to have a status of complete in order for matching to occur..  This approach is applied to low-cost parts where a physical count would be too costly to be justifiable.

The choice between these two approaches should be made according to vendor qualification for a part.  For this reason, this information is contained in the receiving type code given by the user at the item/vendor relationship level and can be overridden at the purchase order detail line level.  When the receipt is created, the receiving type code is taken from the purchase order and cannot be changed on the receipt line.

The different stages within the Quantity Control process are tracked through quantity control status codes defined on the Reference File.  Three status code values are maintained by the system:

·     No control

·     Awaiting control

·     Complete

The table below shows how these automatically maintained status codes are applied for both receiving types.

   Quantity Control Status Codes

At the same time, a quantity approval status allows the system to track variances between listed quantities and counted quantities.  Five approval status codes are defined on the Reference File:

·     Awaiting approval

·     Dispute

·     Awaiting vendor approval

·     Approved

·     Not approved

The next figure shows how these approval status codes are applied for both receiving types.

         Quantity Control Approval Status Codes

The quantity control and approval status codes are maintained simultaneously and automatically by the system, as shown below. 

Quantity Control Status and Approval Codes Processing