Re: Purchase Receipts Procedure

I am not at my AS/400 which used BPCS 405 so this is from memory.
We have ROs for inter-facility which should be received via DRP550
and POs for receipts from outside vendors which should be via PUR550
but some of this can be done via INV500

The nature of the product we buy & sell is that inspection is not easy ... we 
will not notice right away where a problem is ... so we receive it ALL in, 
then when inspection finds there is a problem, then we use INV510 to transfer 
to a rejects / repair / inventory not to be used until we resolve what to do 
about it

So your example of a vendor with such poor performance that you should not be 
doing business with them any more ... you will end up with 800 in stock to be 
used & 200 in the rejects area in which you will have to have a go around 
with your vendor to find out if they will issue an RMA for the 200 or if the 
process is more complicated ... some parts we can repair & bill the vendor 
for the repair.

First off you have your PO or RO order quantity 1000 ... you received 1000, 
even though 200 were no good.  At this point you have a choice

Do like us ... receive 1000 via PUR550 so the PO is relieved & the AP is 
matched, then transfer 200 to rejects area via INV510 to decide what to do 
about it ... why is this problem ... did the trucking company mess it up, did 
the vendor mess it up, can we repair it, should we repair it.  Next nite MRP 
will re-issue demand for PO for 200 because the reject area is a non-nettable 
warehouse.  

There's a memo to accounting about holding off paying the invoice until this 
disaster is resolved.  There are some serious discussions with the vendor 
about how fast they can replenish the 200 & who will pay air shipping express 
replacement because we are on a Just In Time basis without adequate safety 
stock for this vendor's failures.  Until the vendor sees proof that it is 
their fault, they are not going to commit to paying for extra-ordinary 
replacement measures.

Another approach might be to receive 800 via PUR550 so the PO shows 200 is 
still owed us, but then what transaction do you use to account for the 200?

When we have inventory in our building, we need to account for it, whether it 
is good or no good.  We need to have a clear & unambigous audit trail for all 
concerned.

Let's suppose we only received 800 into inventory off the PO, then our 
accounting department & their accounting department runs a trace through the 
trucking company to find out how come they sent 1000 & we received 800 ... it 
needs to be obvious before that point that we received 1000 but 200 was no 
good.

We have the same arrangements with our customers ... we ship them 1,000 units 
& they say there is a problem with 15 & there is a discussion regarding 
whether they can repair the problem, whether they can share info with us so 
we know what the problem is to stop it from happening again, whether they 
should scrap it & we will ship replacement 15 at no cost to them, whether we 
will issue an RMA for return, whether we will credit them for the 15 returned 
& rebill them the 15 replacements.

However, as far as everyone's computer totals are concerned, the fact that 15 
are no good is irrelevant to the fact that we shipped them & they received 
1,000.

>  From:    fupingren@yeah.net (Ren Fu Ping)
>  
>  Dear All,
>      Envoironment: BPCS 6.0.02, AS/400
>      How to process the purchase receipts procedure. ??
>      Example, I Create a Po for raw material, Order qty: 1000, and when
>  vendor delivery, we need inspecting, so inspecting qty is 1000,stock qty
>  is 0,but the IQC result is rejecting qty 200,and stock qty is 800. How
>  to tracking the sequence procedure in BPCS, and how many transaction to
>  record it and what transaction code to record it.
>  
>  Best regards!
>  FP Ren
>  China

Al Macintyre  ©¿©
http://www.cen-elec.com MIS Manager Programmer & Computer Janitor

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