Inventory Receipt Processing
Inventory receipts, which you can create and view by using the Receipts (IN301000) form, are used to account for stock items received in the inventory. If your organization uses the Purchase Orders module, the system creates inventory receipts automatically once purchase receipts have been released.
Also, you can create inventory receipts not linked to purchases in the following situations:
- To enter initial quantities of stock items during the system implementation
- To record the items transferred to the destination warehouses from the source warehouses
If the Purchase Orders module is not used, or in some other cases, you can create inventory receipts manually to account for the stock items purchased and received to inventory.
Data Entry
You can view, edit, and create inventory receipts by using the Receipts (IN301000) form. A new inventory receipt, either automatically generated or created manually, is assigned a reference number according to the numbering sequence that is specified in the Receipt / Transfer Numbering Sequence box on the Inventory Preferences (IN101000) form.
For manually created receipts, you enter the following information for each line:
- Inventory ID that identifies the stock item. If the Inventory Subitems feature is enabled in your system, subitem is used with the inventory ID to identify the stock item.
- UOM, unit of measure. By default, it is the base UOM selected for the item on the Stock Items form. However, if the Multiple Units of Measure feature is enabled on the Enable/Disable Features (CS100000) form, you can use any of the UOMs specified for the item.
- Quantity, the quantity of the item to be received to the inventory in the selected UOM.
- Unit Cost or Ext. Cost (extended cost) of the received item. You can enter the unit cost manually or use the default unit cost, and the system calculates the extended cost automatically as the unit cost multiplied by quantity. Alternatively, you can enter the extended cost. The default unit cost specified for a stock item on a receipt is an estimation of cost retrieved from cost statistics.
- Reason Code, which is required only for manually entered receipts. A reason code supplies the offset account and subaccount (to be credited) by the receipt-based batch of transactions. The system will use the default reason code selected for receipts on the Inventory Preferences (IN101000) form if no reason code is specified for the line. Reason codes are not used for receipts generated from the documents originated in the Purchase Orders module.
An item can be added to a receipt with the help of a barcode scanner. Scanning a new barcode automatically adds a new line to the receipt and scanning the same barcode adds one more unit of the item. The options that control this behavior are located on the Inventory Preferences form.
For the procedure that describes hot to enter inventory receipts, see To Enter an Inventory Receipt.
Release of Receipts
You can release a particular inventory receipt by clicking Release on the form toolbar of the Receipts (IN301000) form. Also, you can release multiple receipts (along with inventory transactions of other types) by using the Release IN Documents (IN501000) form.
Released receipts are read-only documents.
If the Update GL check box is selected on the Inventory Preferences form, on release of each receipt the system generates a batch of general ledger entries, updates the availability data for the items and the cost statistics. You can view the reference number of such batch on the Financial tab of the Receipts form: To view the details of the batch, click the reference number of the batch in the Batch Nbr box.
The Inventory Valuation (IN615500) report shows the on-hand quantity and the total cost of inventory items on hand, which are updated by every released inventory receipt.
Processing of Receipts Generated by Purchases
If a receipt is created automatically as the result of releasing a purchase receipt, the information required to post transactions listed in automatically generated inventory receipts comes from the posting class of the item. Posting classes are defined on the Posting Classes (IN206000) form and assigned to stock items on the Stock Items and to non-stock items on the Non-Stock Items form.
When an inventory receipt based on a purchase receipt is released, the item's posting class determines the General Ledger accounts to be updated. Reason codes are not used for receipts generated from the Purchase Orders module.
On release of a receipt, the system generates a batch of General Ledger entries: For each receipt's line, one journal entry debits the inventory account and another one credits the PO accrual account (determined by the posting class of the item).
Processing of Manually Entered Receipts
You can create inventory receipts manually if your organization does not use the Purchase Orders and Sales Orders modules. In case the Sales Orders module is integrated with the Inventory module, you can create receipts for the transferred inventory in a two-step transfer process. Also, you can use receipts to enter initial quantities of stock items during the system implementation.
On release of a receipt, the system generates a batch of General Ledger entries: For each receipt's line, one journal entry debits the inventory account (determined by the posting class of the item) and another credits the account specified in the reason code of the receipt line.
Printing Labels
After you have processed the receipt, you can print labels for the received items by clicking on the form toolbar of the Receipts (IN301000) form. You can also print labels later by running the Inventory Item Labels (IN619200) report.
A label for a stock item includes the name of the warehouse, the location where this item is stored, the inventory ID, subitem, description, and information about receipt (the reference number and the date). If the lot/serial numbers are assigned to the item on receipt, separate labels are generated for each serial or lot number used for the received quantity of the item.