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PO Receiving Errors/Differences

  • 1.  PO Receiving Errors/Differences

    Posted Jul 31, 2020 03:57 PM
    I have been searching previous discussions and can't seem to find an answer.  I need to know the best way to handle receiving errors/differences.  Two scenarios I have come across:
    1) The PO quantity ordered is 200 and was received in as 200 (PO shows quantity shipped 200).  It was then determined that the actual quantity received was only 197.
    2)The PO quantity ordered is 120 but only 119 were received in (PO shows quantity shipped 119).

    The invoices will be for the lower quantity.

    For 1) I did a Purchasing>Returns Transaction Entry for the extra 3.
    For 2) I usually close the PO after the invoice has been Enter/Matched since the PO remains open waiting for the remaining 1.

    Am I doing the right thing or is there a better way.


    Vickie Jackson
    NewStar Sourcing and Service
    Academy - Online Interactive Learning from Experts

  • 2.  RE: PO Receiving Errors/Differences

    Posted Jul 31, 2020 04:27 PM
    That depends on what we should understand the right thing to be.

    There are two methods to deal with shortages:

    1. You can implement tolerances, which require you to set the tolerances for overages or shortages at the item level (in percentages). If a receipt shortage is within the calculated quantity tolerance level, the difference between the quantities is canceled and the status of a line item is automatically changed to change order, received, or closed. The status of the line item depends on whether or not the line item has been invoiced. The tolerance amounts are rounded based on the quantity decimal places set up for the item being received. Quantity shortages are rounded down.

    2. You can always use Purchasing Returns to deal with discrepancies as you outlined above. Obviously, the type of return will depend on your arrangement with the vendor, i.e., are they going to ship you the shorted quantity or not.

    At the end of the day, the decision is between how automated or how manual do you want to make this process and as you can tell, option 1 offers automation, option 2 is, well, manual. I would go with option 1 if these things happen very sporadically and perhaps discrepancies are "not a big deal" in the scheme of things. I would go with option 2, if you know that the issue can occur more often and you need to take corrective actions with the supplier, like, change the supplier :)

    Mariano Gomez Bent, MVP, Dynamics Credentialed Professional
    Director of Technology

    Academy - Online Interactive Learning from Experts

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