RE: Purchase Receipts Procedure -- BPCS-L

        As to the question about rejection on receipt - 

        What's wrong with the audit trail that BPCS leaves you? - An "N"
transaction of 1000 (in your example) and a "P" transaction for 800 accepted
and 200 rejected, leaves you with a PO that shows 200 rejected.  If there is
a delay in rejection entry, the 200 are "In Inspection". The Inspection
Dispatch Report shows what is "In Inspection" but not yet disposed of, and
queries can easily be written to show the same in more detail.

        Dick Bailey
        MCFA

                -----Original Message-----
                From:   MacWheel99@aol.com [mailto:MacWheel99@aol.com]
                Sent:   Friday, June 16, 2000 1:19 AM
                To:     BPCS-L@midrange.com
                Subject:        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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