For many businesses purchasing goods in from suppliers, the over and under receipt of items is a problem that can often occur during the supply chain. Circumstances may arise when the goods received do not match the original purchase order. This could be a case of suppliers spreading the goods across multiple deliveries, sending higher quantities than originally ordered or the supplier simply being unable to meet demand. When situations like this occur, it is important that any differentiation between the number of goods received and the original quantity ordered is accurately recorded and any subsequent actions are handled in an effective and organised fashion.
When a supplier is unable to meet demand, it may be a case where manufacturing or importing delays have resulted in some of the goods being sent at a later date, with the supplier only fulfilling the demand he can manage at that time. However in some instances it may be that the goods are no longer obtainable and therefore will not be sent at all. Often in these situations a supplier will list the details of any order lines it is unable to fulfil on delivery notes, therefore the under receipt is not known until the delivery arrives into the warehouse.
There is existing functionality in OrderWise to update the Purchase Order quantity at goods in to allow for over/under receipt and removing the need to manually update the Purchase Order, however this will simply show that the PO was received in full rather than short delivered. In addition if payment has been made to suppliers in advance of delivery then a debit note may also need raising for the supplier for the outstanding balance, by leaving this to be handled separately there is potential for vital supplier debits to be missed.
Easily manage partially received purchase orders
New functionality in the 2014 v9.5 release of OrderWise now provides further options on the actions that can be performed when booking goods in. Users can cancel any remaining goods not received from a purchase order instead of simply updating the PO to match the quantity received. This functionality can be enabled by turning on the goods in system setting labelled cancel remaining quantity when updating. Once this option has been activated, the update quantity ordered option on the booking in form will change to cancel outstanding quantity. When stock is booked in and the cancel outstanding quantity option is ticked, the outstanding quantity will be cancelled off the purchase order line and the purchase order line marked as fully received. This will provide the ability to further monitor suppliers, identifying those that continually make short deliveries and allow supply chain performance to be improved.
Users can also enable a further goods in system setting to automatically raise a debit note when cancelling the remaining quantity. If this setting is also activated, the quantity cancelled will be automatically added to a new debit purchase order with the same costs, this can then be viewed within the purchase activity screen. This debit will be associated to the original purchase order using the purchase order line ID, creating an easily identifiable, auditable link between the two.
With this new development OrderWise further expands its ability to accommodate for any complications throughout the purchasing process that may arise, ensuring that any necessary purchase order cancellations and subsequent debit notes are processed as efficiently as possible.
For more information on OrderWise including Purchasing and Goods In, download the brochures or watch our videos.
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