PM Goods Receiving

• Overview
• • Controls and Pre-Requisites for Goods Receiving
  • Features
  • Integration
• Receiving Goods
• Receiving Services

• Fast Order Receipting
• Returning Goods and Services
• Cancelling Goods and Services
• Amending Receipts/Returns
• Recording EC Intrastat Movements
• Entering Performance Monitor Data

Overview

Goods Receiving can be described simply as the creation of a document detailing what goods or services have been delivered to the business. This document is known as a Goods Receipt Note, or GRN. The GRN must be matched against Purchase Orders and subsequent AP Transactions. Each GRN refers to a specific Order Line.

Orders and the subsequent GRNs can be created for goods which are measured in terms of quantity and services which are measured in terms of service value.

Within the Goods Receiving function there are effectively two methods of receipt:

• Normal goods receiving where at least one GRN is created for each order line.
• Fast goods receiving where the total amount for one or more order lines is received on one GRN. This is only applicable for goods and can not be used for the receipt of services.

The maintenance of Goods Receiving ensures that:

• Only goods/services ordered and received are paid for
• Goods/services ordered are actually received by the company
• Goods/services received are acceptable
• Rejected goods/services are replaced or compensated for by the Supplier
• Accrual information is created to maintain the current financial position of the Company

There are three ways of generating GRNs:

• Manual data entry
• Automatically from entry of a AP Transaction matched to a Purchase Order
• Automatically once the due date of a Purchase Order has been exceeded

Various types of data can be added to a GRN. These include:

• Goods/Services quantities, values and delivery data
• Intrastat information (EC Movements)
• Split Analysis Data
• Performance Monitor Data

The minimum information that must be entered for a valid GRN is; quantities/values, delivery dates and the corresponding Purchase Order.

GRNs also accommodate returned goods/services and requests for credits against faulty goods/services. There is also a two-stage receiving process where the goods/services are placed in an advised status while extra quality checks are carried out.

Any Targeted Text which would contain a message to the receiver will be displayed on the first Receiving screen, once the order references have been entered.

NOTE Each GRN represents one Order Line. Part of the Line may be accepted, advised and rejected.

The diagram illustrates the impact of Cancellation and Goods Receiving within the Business Cycle.

Purchase Cycle

Diagram pm170

Controls and Pre-Requisites for Goods Receiving

The minimum requirements for you to create or amend GRN information are:

• A Purchase Order must exist and be matched to the GRN
• You must be either an Acceptor or Receiver

Features

Online Information

An important feature of goods receiving is the access to receipt information made available through the enquiry screens detailed below.

Diagram pm180

Online Accruals

When a GRN is completed and matched against an AP Transaction, the following occurs:

• Accrual control is credited
• Accrual expenses are debited
• The commitment is backed out if a commitment was posted from the Purchase Order.

Purchase Price Variance

If an Order Price is different to the Standard Cost for an Item, the difference is posted as a credit to the Purchase Price Variance Control. The Purchase Price Variance Control is debited with this difference when the corresponding GRN is matched against AP Transaction. The Standard Cost is debited from the Expenses Control. All of these postings are reversed when a AP Transaction is matched against the Order.

Linked Enquiries

Linked Enquiries enable you to look directly at information relating to the GRN, but contained in other Ledgers. For example, a linked enquiry to General Ledger would display information on the account to which the goods were charged.

GRN Status Cycle

Each status has several rules associated with it. These are listed below, underneath each status.

1. ADVISED - Goods have been received but have not been checked and the GRN is not available for invoice matching. This applies to goods only, not services.

1. • No postings

   • An Advised GRN can be cancelled

Advised GRNs can be automatically changed to outstanding status after a specified number of days have passed.

Service Value Orders cannot have Advised status.

2. OUTSTANDING - Goods have been received and checked. The GRN is available for invoice matching, certain information can be amended or added:

1. • An outstanding GRN can be cancelled
   • Split Analysis, Intrastat Movement, Performance Monitor

If a standard Order or a Service Rate Order:

1. • Advised quantity if present
   • One or more of the following are Present:
   • Received quantity
   • Replaced quantity
   • Credit quantity

If a Service Value Order:

1. • Received value, if present
   • Replaced value
   • Credit value

Outstanding GRNs can be created automatically from Advised GRNs. Order and Order Line information is updated. Appropriate postings are made.

3. MATCHED - The GRN has been matched against the AP Transaction(s):

1. • Cannot be cancelled
   • A GRN can be matched with many Invoices/Credit Notes

4. HELD-INVOICE - An invoice with which the GRN is associated is being held:

1. • Cannot be cancelled
   • Split analysis information cannot be amended
   • AP controls the setting/re-setting of Held-Invoice status

5. COMPLETE - All the invoices associated with the GRN have been matched:

   • Only Enquiry, Reporting and Archive functions can be performed on Complete GRNs

6. CANCELLED - The GRN has been cancelled:

   • Only Enquiry, Reporting and Archive functions can be performed on Cancelled GRNs

If an Outstanding GRN is set to Cancelled:

1. • All updates made to Order and Order Line data are reversed
   • All postings made when set to Outstanding are reversed

Integration

The diagram illustrates the integration with the other modules of e5 .

Diagram pm190

See also

Purchasing Management Home Page