Question

Over Receipted POs post inspection

  • 31 August 2022
  • 3 replies
  • 137 views
M

Hi guys,  I have seen a couple of articles surrounding this subject but just wanting to clarify my understanding. 

 

Once a PO has gone through and passed inspection, we cannot delete or change the PO receipt….Understood

A way round this is to raise a DMR on the overage quantity received and then in DMR check the box to return to sender.

 

What transactions does that resolve in the way of finance, because as I see it we would still need to clear GNRI as the supplier will never invoice for the material we incorrectly booked in?

 

Am I right that if we pass the point of no return that we are going to have to complete numerous finance steps to reverse the transaction?

Does anyone have quicker or easier solutions?

3 replies

G
Userlevel 3

Let me repeat what I believe you are attempting.

You have over received on a PO quantity, and are looking for a way to remove the excess quantity received from Epicor?

If this is correct, why not stop the over receipt from ever happening with a BPM?  We have this BPM in place and an error message is displayed at Receipt Entry stating the quantity you are receiving is over the quantity of the Purchase Order.  This halts the receipt and if necessary, Procurement will modify the PO to account for the excess quantity or contact the Supplier to inquiry as to the reason for the shipment quantity being in excess of our order quantity.  If this is a mistake by the Shipping individual, the issue is stopped in it’s tracks.

I can send you our BPM code that handles this, if you wish.

Glenn Owers Sr. Business Analyst Safran Electronics & Defense Canada Peterborough, ON Canada Version: 2021.2..23
M

Thanks for you reply Glenn, 

 

As is always the case its unfortunately not quite as clean cut. 

Example,  we have a PO for say 150x Part A

We don’t receive these parts at once but over a period of around 4 months. 

However the supplier invoice us by quantities delivered at each month end until the PO is satisfied .

So after the first months delivery of say 50 the supplier will send us an invoice to pay for the 50. So it maybe that we have physically received 50 of Part A and we have incorrectly receipted and passed 60 onto our system. I assume from what you are saying that the BPM might not kick in until we get to above 150? 

Our problem stems from that over receipting whilst potentially still having a PO to be satisfied. 

 

G
Userlevel 3

@M.Jamieson Does the supplier deliver to the PO Release quantity?  If so, you could modify the BPM to look at the PO Release Line/Release combination and validate to that instead of the entire PO quantity.  We go against the entire PO quantity, as we have the same scenario as you, we will order 500 of Item A, and receive 5 shipments of 100 units over a 5 month period.  Supplier will invoice us for each shipment of 100.  Receipt Entry will match the receipt to the PO Line/Release combination, for quantity.

Are you creating 1 PO Line/Release combination for the entire order quantity or do you break up the Order quantity using the PO Line/Release process to show the quantity will be received over several shipments?

Glenn Owers Sr. Business Analyst Safran Electronics & Defense Canada Peterborough, ON Canada Version: 2021.2..23

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