Receiving Shipments (Placed PO's)

In this procedure you process a shipment that you received in response to a purchase order that you placed with a supplier.

When a shipment is received from a supplier, you update the placed purchase order and record the shipment as received. The object of this process is to recreate the supplier invoice that came with the shipment. This will eliminate the tedious, time-consuming task of trying to reconcile payables to supplier statements after the fact. In many shops, incorrect payable reconciliation is by far the most frustrating monthly bookkeeping task.

By default, the first time you receive a purchase order it will assume you have received the entire shipment at the current pricing. You can update individual items where that is not the case. As you edit each line, the totals recalculate. When the supplier invoice has been duplicated, you save it and it is moved to the Supplier Invoices node of Purchases Manager. From there, reconciled supplier invoices may be moved directly to payables.

The receiving process automatically updates inventory quantities and changes the status of unsourced parts on work orders. Backorders and returns are also handled automatically.

To receive a shipment:

1. On the Purchases window, expand the tree to display the Placed Purchase Orders node.

2. Select the purchase order you want to work with.

3. Click Update. The Purchase window displays a list of items and quantities included in the purchase order.

4. Select a line to work with.

5. To remove the selected line:

   • Right Click the item.

   • Click on Remove Selection

   • Confirm the deletion.

6. To update the selected line, click Update Line or Tools>Update Line. The Update Line window is displayed.

7. To update the line to match the supplier invoice:

   • Enter the actual quantity received.

   • If applicable, enter the quantity on back order.

   • If applicable, enter the quantity returned.

   • Enter the actual cost figures.

   • Click Save.

   • You can also click the up and down arrows to move to the next item on the list.
     
     The cost and quantity fields on the Purchase window are updated. Returned goods are automatically moved to the Returned Goods Awaiting Pickup node.

8. To associate an item with an existing inventory item:

   • Right click on the item.

   • Click on Associate With Inventory.

   • Search for the item using the inventory search dialog.

   • Right click on the item and click Apply.

9. To create a new material item card for the item:

   • Right click on the item

   • Click on Create Material Card.

   • Confirm the action.

   • Select a Service Category

   The material item card is created but is very incomplete. It is suggested you update the material card in the master and location lists.

10. To process the goods received:

    • Enter the supplier's invoice in the Supplier Invoice field or select an open invoice from the list.

    • Click Select All.

    • Click Tools, click Receive Selected Lines.

    • When prompted, confirm processing.
      
      A new invoice is added to the Supplier Invoices node for inventory items and a new slip is added to the Consignment Slips node for consignment items. All received items will be removed from the PO and only outstanding items will remain.