Receiving Against Purchase Orders

The update of purchase order files during the receiving process depends on the type of purchase order being processed -- a phantom order or a non-phantom order.

Receiving on phantom purchase orders is performed on individual, user-specified purchase order releases.  In the Quantity Control Maintenance conversation, the user is presented with purchase order release information on the detail screen:  manufacturing order number, operation number, operation line number, and due date.  Received quantities may then be entered against specific releases.  The received quantity and balance due are then updated on the release.

Receiving on non-phantom purchase orders is done in a progressive manner, from the release with the oldest due date to the most recent.  If the balance due on all releases is reduced to zero, the remaining quantity received but not yet applied to a release is placed on the most recent release.  A subsequent addition of a release with a more recent due date through the Purchase Order Maintenance conversation will automatically apply the over-received quantity on the release just added, unless cascading over-receipts are suppressed.  The cascading over-receipts options are discussed later in the section.  The following transactions can reduce the received quantity:

·     Counted quantity reduced in the Receipt Quantity Control Maintenance conversation

·     Return with replacement in the Receipt Quality Control and Receipt Adjustment conversation

·     Over-shipment in the Receipt Quality Control and Receipt Adjustment conversation  (This transaction can be used only if an over-shipment condition exists.)

If one of these transactions reduces the received quantity, the releases are updated inversely, from the most recent to the oldest.  The received quantity is diminished and, if the release is not over-received, the balance due is increased.

The following two examples illustrate this processing:

Example 1.  Non-Phantom Purchase Order

The original purchase order has two releases¾one due March 3 for 100 and one due April 3, also for 100.  Twenty have already been received; this has already been applied to the oldest release, March 3.

In Scenario 1, the transaction quantity is 100.  The receipt is first applied to the release with the oldest due date, March 3.  The balance due is reduced to zero; the received quantity is increased by the same amount.  Since the balance due on this release is only 80, 20 are left over.  This quantity is applied to the next release, April 3.  The received quantity is increased by 20, and the balance due is reduced by the same amount.

In Scenario 2, the transaction quantity is 200.  As in Scenario 1, this is first applied to the oldest release.  But this time, when the over-receipt quantity is applied to the second release, there still is an over-receipt condition.  The balance due is reduced only to zero - it cannot go negative - and the received quantity is increased by the full remaining transaction amount.  This release has been over-received; if a subsequent release is added, the over-release quantity (20) would immediately be applied to the release if cascading over-receipts are not suppressed.  If cascading over-receipts were not suppressed, the over-release quantity (20) would remain over-received for the second release, and the balance due will equal the quantity of the new release, and increase the received quantity by 20 and reduce the balance due by 20. 

In Scenario 3, the transaction quantity is -10.  This could have come about through a reduction in the counted quantity or a return with replacement.  The negative quantity is also applied to the oldest release, March 3.  But this time, the transaction quantity reduces the received quantity and increases the balance due.

Example 2.  Phantom Purchase Order

Receiving on phantom orders affects only the release the user chooses to receive against.

The original purchase order has two releases--one for manufacturing order MFG01, due March 3, and the other for MFG02, due May 3.

In Scenario 1, 110 is received for manufacturing order MFG01.  Although the received quantity now exceeds the release quantity for MFG01, the quantity over-received is not applied to the subsequent release.

In Scenario 2, the transaction quantity is -15, which is applied to the release for manufacturing order MFG02.  This could have come about through a reduction in the counted quantity or a return with replacement.  This transaction quantity reduces the received quantity and increases the balance due.

The updates are made during the Quality Control or Receipt Adjustment step by means of a transaction quantity, an adjustment code and, if a reversal transaction is processed, a reversal code.  The figure below shows all combinations of transaction descriptions, adjustment types, and the four flags that can be processed in the system:

        Receipt Adjustment Codes

Cascade Over-receipts Option

The Cascade Over-receipts Option is used in the Purchase Order Maintenance conversation when a previous purchase order release has been over-received and a new release is added.  If the option is set to yes on the Cascade Over-receipt field in the Purchasing System Defaults 1 category (record 491), the over-receipt quantity will be "cascaded" on to a newly added release.  The system will assume that the balance due on the purchase order line is the new release quantity less the quantity that was previously over-received.  If the option is set to No on category record 491, the over-receipt quantity will not be "cascaded" on to a newly added release, and the system will assume that the balance due on the purchase order line is the full release quantity.

For example, assume that a purchase order line has one release, with a release quantity of 10.  Twelve units have been received against the line (it has been over-received by 2 units).  A new release of 10 units is added to the line.  The examples below show the results of the two Cascade Over-receipts options:

Cascade Over-receipts is set to Yes:

Cascade Over-receipts is set to No:

If you set the flag on 491 to no, you can still distribute over-received quantities to new releases by selecting the F20 function key from the Purchase Order Maintenance Release screen.