PM Goods Receiving - Receive Goods

Receive Goods refers to creating a Goods Receipt Note (GRN) when goods are delivered. A minimum of one GRN must be created for each Purchase Order Line that is delivered. This section describes the process, either by the user or the system, for the receipt of goods that have a physical existence (i.e. quantity related). Services (i.e. service value related receipts) are dealt with separately, under Receive Services.

GRNs are created in response to a delivery of goods. Their purpose can be summarised as follows:

To ensure that sub-standard goods are replaced or compensated for by the Supplier
The GRN confirms the quantity and quality of the goods are correct and accrual information is created to maintain the current financial position of your company
It acts as a means of controlling the stages of the Order Management cycle with Order - Receive Goods - GRN - Invoice

The task can be summarised under two headings:

Receipt Entry

This is where the actual reference details of the order are entered into the system.

Order Reference and Order Line number (This retrieves the Supplier and Order Line details).
Delivered quantities.
A minimum of one GRN is created for every Purchase Order Line.
Split analysis (where lines are for posting to more than one General Ledger account).

Functions

The delivery is matched to the Order and then against the AP Transaction.

An AP Transaction is entered into the Accounts Payable system and matched against GRNs and Order Lines. This completes the cycle of Order - Receive Goods - GRN - Invoice.

Goods Receipts Notes can be created automatically once the due date as specified on the order has been exceeded; this is activated by the order being flagged for automatic receiving during the order creation process. This facility is not available for service receipts. GRNs may also be generated from receipt of Invoice.

NOTE An Order Line can have many GRNs against it as goods and services can be partially delivered.

Receive Goods is the first step in the business cycle when goods are being delivered.

What controls are established will be dependent upon how they have been set up for your Company but all GRNs require at least an Order Reference and a valid Order Line.

Entries in many fields may be predetermined by entries in the order line.

The diagram illustrates the Receive Goods process.

Diagram pm240

NOTE The menu path shown is the default for the system. Your company may have customised menu options, so the path shown may not be accurate. Please contact your system administrator for details.