PM Goods Receiving - Receiving Services

Receive Services (service value related) refers to creating a Goods Receipt Note (GRN) when Services are delivered. A minimum of one GRN must be created for each Purchase Order Line that is delivered. Goods are dealt with separately, under Receive Goods.

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

To ensure sub-standard Services are replaced or compensated for by the Supplier
The GRN confirms the value and quality of the Services 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. They consist of:

Order Reference and Order Line number (This retrieves the Supplier and Order Line details)
Delivered values
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)

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

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 Services - GRN - Invoice.

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

Receive Services is the first step in the business cycle when services 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 Service Receipt process.

Diagram pm250

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.