RE: Receiving inventory into Quarantine

["Peggy A. Heritz" <pheritz@xxxxxxxxxxxxxxx>]

We had a discussion about this topic in this forum a few months ago.  Be
careful with the "Q" transaction because it causes problems for accounting.
Typically, you legally accept ownership of material either when it leaves
your supplier's dock or you sign for it on your receiving dock (depending
on shipping terms).   Regardless of whether you want to consider this
material "quarantined" from a mfg standpoint, from a G/L standpoint you
have taken possession & you own it.   You ledger needs to reflect this.
The "Q" and "P" transaction do not easily accommodate this.

As far as nettable vs non-nettable.    Generally,  I see quarantine
materials set at nettable and non-allocatable.  Nettable because if you set
as non-nettable, MRP will tell you to order more when you have it sitting
there but not yet approved.  Non-allocatable  so no SO or CO can use it.
Usually a separate BPCS warehouse.   It is also important to physically
separate these materials.   When they pass QC, transfer them to a
allocatable locations in a regular stores location.    You can use security
by warehouse to control who can do transactions in the QC warehouse.

Call if you want to discuss in more detail.


Peggy Heritz, Executive
Crowe Chizek & Company, LLP
http://www.crowechizek.com/scg/
219.236.8698

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