Describe purchase order receipts

  • 8 minutes

In this unit, you learn the processes involved in receiving goods or services against a purchase order.

Receipt list

The receipt list is a reference document for the workers. If your organization doesn’t have a warehouse management system implemented, you can use the receipt list to compare the physical incoming items. The receipt list doesn't have any impact on stock. You can use the document to cross-check the incoming vendor invoice.

To post the receipt list, on the Purchase order page, navigate to the Receive menu in the action pane. Select the Receipts list button under Generate to open the Posting receipts list dialog.

Screenshot of the Posting receipts list dialog.

You can post the receipts list or print it without posting. For the latter, you can select the Pro-forma receipts list button under the Generate section. Under the Overview FastTab, you can select the document date to indicate the expected date to receive the items. In the Quantity field under the Lines FastTab, you can enter the quantity of the item expected to be received. This number can be different from the Quantity ordered on the Lines FastTab. Select OK to post the receipts list or proforma receipts list.

Purchase receipt

If you don’t use warehouse management in your system, you can receive the item directly from the Purchase order page. To post the product receipt, navigate to the Receive menu in the action pane on the Purchase order page. Select the Product receipt button under Generate to open the Posting product receipt dialog.

Screenshot of the Posting product receipt page.

You need to enter the product receipt number and document date. You can also change the quantity based on the physical quantity you're receiving from the vendor. You can clear the Posting checkbox to print the proforma product receipt. A proforma product receipt doesn't impact the stock. Posting the product receipt increases the quantity in stock. Depending on your posting profile settings, you find entries in the corresponding subledger account. To view the entries, navigate to Purchase order > Receive (action pane) > Journal > Product receipt. On the Product receipt journal page, select the View accounting button.

Screenshot of the Subledger journal page with one posting type highlighted.

To check the posting profile, you can navigate to the Inventory management > Setup > Posting > Posting page. On the Posting page, select the Purchase order tab.

Screenshot of the purchase tab of the Posting page.

Registration

Based on business requirements, you can introduce another step before the product receipt, which is registration. The supplier might share product information electronically through an advanced shipment notice (ASN) that can be recorded to your system. Alternatively, registration occurs at the inbound dock in the warehouse. It can be performed by using a hand-held device or through an arrival journal (discussed later in this unit). Alternatively, it can be done manually from the Purchase order page.

Screenshot of the Update line link in the purchase order line.

In the purchase line, select the Update line button, followed by the Registration button. The Registration page opens, where you find the order quantity on the Transactions FastTab. Select the Add registration line button to bring the ordered quantity to the Registration line FastTab. In the Register Now field, enter the physical quantity you want to register. You also need to specify the storage dimension on the Registration lines FastTab to specify in which warehouse, location, or license plate the item is stored in the inventory. Based on the tracking dimension configured for the item, you may need to define the batch or serial number of the item during the registration process. The registration process completes when you select the Confirm registration button.

Screenshot of the Registration page with. The Added registration line, Confirm registration, and Register now links are highlighted.

In the item model group of the item, you can check the Registration requirement. This ensures that the item registration is a mandatory process before getting added to the stock. If Registration requirement isn't selected, you can bypass this process.

Screenshot of the Item model groups page. The Registration requirements checkbox is selected.

In your company, some products may go through quality inspection before they're put away to inventory. Either quality order or quarantine order can be used to perform this process. In such scenarios, you can generate a quality order as soon as you process registration. It's recommended to have the registration process as mandatory for those items.

Arrival journal

You can use an arrival journal to register the receipt of items from purchase orders without using the purchase order interface. An item arrival journal can be created as part of arrival management from the Arrival overview page, or you can manually create a journal entry from the Item arrival page.

The Arrival overview page can help the warehouse manager and warehouse workers achieve an overview of expected work that must be done as part of an inbound process. You can access the Arrival overview page from Inventory management > Inbound orders > Arrival overview. On the Arrival overview page, you find all the inbound orders, including purchase orders and transfer orders.

Screenshot of the Arrival overview page with a purchase order highlighted.

Select the purchase order you want to register and select the Start arrival button. In the next process, you need to select the Journal > Show arrival from receipts button. These selections open the Warehouse arrival journal. In the arrival journal, specify the storage and tracking dimension of the inbound inventory. When you post the journal, the purchase order is automatically registered.