Question

Marking Parts on PO as Inspection Required but when received can still pay supplier even though not inspected?

  • 28 April 2021
  • 3 replies
  • 474 views
K

So if we mark a part on a PO as Inspection Required, and then when we it comes in we receive that part into the INSP bin, but we are able to pay the supplier since it has been received.  Is there a way to stap that ability if something on the PO is in the Inspection bin?  We shouldn't be able to pay the supplier if we haven't inspected it yet.  Our current work around is that we just don't receive it until we have already inspected it so this can't happen, but then things don't show received when they have actually come in so others in the business can't tell we have it.

3 replies

V
Userlevel 2

You can create a BPM to prevent the invoice from being entered if the goods are still in inspection. Or another way would be to put a payment hold on it through BPM at the time of invoice entry.

G
Userlevel 3

You may also be able to use the Arrived functionality of the Receipt Entry process.  Arrived means the items are in the building but not available.  The data is not included on the Received Not Invoiced report as the items are not “Received”, they are in an “Arrived” status.  Once inspection is complete, you can then update the Receipt with the status of “Received” from “Arrived”.  The status of “Arrived” does not create an inventory transaction within the Part Tran History.  The transaction is created when the Receipt is performed.

Arrived simply indicates the items are on the dock and within our building.

HTH. 

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

A few things to think about as you look to redesign your process.

A summary review of your current process:

  1. Parts or a Supplier or a PO are marked as Inspection Required
  2. Parts arrive at your facility
  3. Parts are Physically moved to an Inspection Area
  4. Parts are Systemically Received into the Inspection Warehouse (setup as non-nettable?)
  5. Inspection is completed and you find that of the 100 parts - 75 are good and 25 are bad?
  6. The Good parts are Systemically moved to a Regular Warehouse and Bin
  7. The Bad parts have a DMR created and processed as Accept (possible internal rework to fix) or Rejected and a Debit Memo is processed?

If the above sounds correct a few questions arise that need to be reviewed on the business impact to the other answers provided by others (all can be viable options with proper testing).

  1. Is your Inspection Warehouse listed as Nettable or Non-nettable? This can affect the messages driven by MRP / PO Suggestions if the system shows as received yet the material is not available the Buyer may be told to purchase more.
  2. Bad Parts processing - If you have not yet entered and processed the Supplier Invoice for payment your Debit Memo may be processed before you have authorized the payment for the full 100 as that is the Match amount - PO / Receipt / Invoice. Need to watch the timing then otherwise your accounting may be off especially if one or the other transactions (payment or Debit Memo) are not in the same period.
  3. What is your process for then re-ordering the Bad 25 if you decide to Return to Vendor and Debit Memo route? New line on the existing PO or a new PO with a reference to the Bad parts?

Thanks

Bill

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