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Peggy writes


>Talk to your Accounting folks before implementing the "receipt to
inspection"
>function with the "N" and "P" transactions.  In the US, when you
physically take
>possession of the inventory & sign the paperwork at the dock, you own it
and are
>liable for it.   Regardless of inspection activities.   This is a conflict
with
>the "N" functionality.  Since "N" neither updates inventory no PO
receipts, it
>is difficult to account for all accrued liabilities at EOM.    Also, at
physical
>inventory time, you must be very careful to not count anything that is in
the
>"in inspection" status.  This inventory is not on-hand from a BPCS
standpoint.

Actually with many purchases (your terms have to specifically exclude
this), when it is loaded onto the truck or train, you own it. It does not
even have to arrive to be your problem. However the Feds are nice enough
not to force us at physical inventory time to find out how much inventory
is in transit that we own. And as a result, I have watched train loads of
product shipped between related companies, timed to be on the train during
physical inventory.

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