"Our organization often encounters situations where we physically receive more items than we have ordered. We need a way for our receivers to track the exact amount that has come in, even if it is over the quantity that has been ordered."
"It sounds like you will want to set up over receiving thresholds. This would allow receivers to enter quantities above what was ordered through the PO."
For over-receiving, the tolerances determine whether the receipt is valid. If the received items exceed the ordered items by more than the over-receiving tolerances, the buying solution returns an error and does not send the receipt. For example, you could specify that the user can receive up to five items more than what was ordered without returning an error.
Let's look at how to set these up.
The quantities and amounts on a receipt are expected to match the quantities and amounts on the purchase order. However, sometimes you may receive fewer items or for a lesser amount than what was specified on the purchase order (under receiving), or you may receive more items or for a higher amount than on the purchase order (over receiving).
Over Receiving
- Allows receipt of a greater quantity or amount than is specified on the PO
- System will not allow entry of quantity or amount that is greater than over-receiving tolerance
Under Receiving
- Allows POs to be considered fully received even if the quantity or amount received is less than what is specified on PO
- Receipts can still be entered for quantities and amounts that are less than under-receiving tolerance
If you submit receipts for quantities and/or amounts that are within the configured tolerance limits, the purchase order will be considered fully received. Tolerances can be defined based on:
Quantity
The difference between the number of items ordered and the number of items received. For example, if you set the under-receiving quantity to 10, and an order had a line item with a quantity of 50, the receipt for that line item must be for 40 items or more to be fully received. Likewise, if you set the over-receiving quantity to 10, the receipt can be for up to 60 items and still be valid.
Percentage
The same as quantity, except that it is expressed as a percentage and applies to both quantity and total price (amount). Using the previous example, if you set the under-receiving percentage to 10, and the quantity ordered was 50, the receipt must be for at least 45 items (10% less than the quantity ordered) to be fully received. Likewise, if you set the over-receiving percentage to 10, the receipt can be for up to 55 items (10% more than the quantity ordered) and still be valid.
Value
The difference between the ordered price (amount) and the received price. For example, if you set both the under-receiving value and over-receiving value to 5, and the total price for a line item in the order was $100, the total price of that line item in the receipt must be at least $95 to be fully received and no more than $105 to be valid.
Your site can be configured so that both absolute and relative tolerances must be met for a receipt to be fully received, or that either one of the tolerance settings must be met for the receipt to be complete. This is accomplished using the Operator fields using either and or or.
