Background: Receiving and Inspection

Use the Receiving and Inspection (IRI) program to inspect received items. If your system is set up for dock-to-stock receiving, this program is used to move received items to inventory, whether or not they require inspection. See Road Map for work flow.

This topic has these subtopics:

Direct-to-Stock Receiving

Purchase Orders

Dock-to-Stock Receiving

    Cost Updating

Assign Control Numbers or Locations

    Landed Costs

Material Review Board

Units of Measure

 

Audit Trail

Direct-to-Stock Receiving

You are using direct-to-stock receiving (called one-step receiving in QMRP) if you selected S Stock immediately for the Receiving method option in the System Options Maintenance (XM) - Purchasing Options.

The Receiver Maintenance (IRC) program updates inventory immediately, unless the item you are receiving requires inspection.

An item requires inspection if any one of these conditions is true:

Program

Condition

Branch Item Maintenance (IMB)

Inspection? selection is Y, Q, or R.

Vendor Price Maintenance (VMM)

Inspection? field is selected or IMB selection is Y.

PO Maintenance (VOE)

Inspection? field is selected or IMB selection is Y.

Receiver Maintenance (IRC)

Select the Inspection? field.
or
IMB selection is Y.
or
IMB selection is Q and the total item quantity received triggers inspection.
or
IMB selection is R and the total receipts received triggers inspection.
or
the item's receipt tolerance is exceeded. PO Receipt tol and Mfg Receipt tol is selected in IMB. Default receipt tolerance is specified in XM, System Options Maintenance - Purchasing Options (for PO receipts) or Manufacturing Options (for manufacturing order receipts).

 

 

Note
If the Inspection? field in the Branch Item Maintenance (IMB) program is set to Y, Q, or R and you reach the trigger quantity, the program displays the message Receiver [number] created and requires inspection on the next receipt.

When you have entered inspection results, the system updates inventory.

Dock-to-Stock Receiving

You are using dock-to-stock receiving (called two-step receiving in QMRP) if you selected D Dock-to-stock for the Receiving method option in the System Options Maintenance (XM) - Purchasing Options.

After you receive a PO in Receiver Maintenance (IRC), you must run the Receiving and Inspection (IRI) program to stock (i.e., move received items to inventory) whether or not they require inspection.

The inspection and stocking functions are controlled by program restrictions based on user ID (maintained in User Maintenance):

  • Access to IRII enables a user to inspect receipts only

  • Access to IRIS enables a user to stock receipts only

  • Access to IRI enables a user to inspect and stock receipts

Inspection Not Required

If an item does not require inspection, you can check the quantity to be received into inventory for each line on the receiver or click Complete to receive to stock all quantities for all lines. When you have processed all lines, the system updates inventory.

If the Inspection field is set to N in Branch Item Maintenance (IMB) program or unselected in any other program, you may always override the setting when receiving.

Inspection Required

An item requires inspection if any one of these conditions is true:

Program

Condition

Branch Item Maintenance (IMB)

Inspection? selection is Y, Q, or R.

Vendor Price Maintenance (VMM)

Inspection? field is selected or IMB selection is Y.

PO Maintenance (VOE)

Inspection? field is selected or IMB selection is Y.

Receiver Maintenance (IRC)

Select the Inspection? field.
or
IMB selection is Y.
or
IMB selection is Q and the total item quantity received triggers inspection.
or
IMB selection is R and the total receipts received triggers inspection.
or
the item's receipt tolerance is exceeded. PO Receipt tol and Mfg Receipt tol is selected in IMB. Default receipt tolerance is specified in XM, System Options Maintenance - Purchasing Options (for PO receipts) or Manufacturing Options (for manufacturing order receipts).

If an item requires inspection:

  1. Accept or change the quantity inspected and the quantity rejected.

  1. Receive inspected items into your stockroom. You can check the quantity to be received into inventory for each line on the receiver or click Complete to inspect and receive to stock all lines at the same time. When you process all lines, the system updates inventory.

Assign Control Numbers or Locations

Control number entry is required when rejecting any controlled item during inspection. If you cancel out of control number entry for rejections the quantity inspected / rejected is reset as if the parts were never rejected.

Serial

You can have the system assign serial numbers during receiving. You can enter the first number and have the system assign the remaining items. If you set up a numbering system in the System Options Maintenance (XM) program (Control Number Options), you can leave the serial number field blank and have the system assign the next sequential number.

Lot

If you set up a numbering system in the System Options Maintenance (XM) program (Control Number Options), you can leave the lot number field blank and have the system assign the next sequential number.

Warehouse/Bin Location

When you receive a transferred controlled item and you selected the Rcv to same wh/bin as sending branch? option (Inventory Control Options), the program displays these warehouse and bin locations, which you can accept or change. When you receive a purchased or manufactured item, the program displays the Primary whse and Primary bin loc fields from the item's record in the Branch Item Maintenance (IMB) program, which you can accept or change.

Material Review Board

If you selected the Material review board active? option in the System Options Maintenance (XM) program (Purchasing Options) and you enter a quantity rejected, the program prompts you for a reason code. Use the Rejection Codes Maintenance (TMRB) program to define codes that are reasons for rejection. See Overview: Material Review Board.

Controlled Items Rejection

When you reject a controlled item, the program automatically creates a blank warehouse and the bin is set to [MRBTAG]. This saves you from having to make up a warehouse/bin for scrapping, returning to vendor, and manufacturing rework orders. The only time you need to enter warehouse/bin locations is when you "stock as is."

MRB displays rejected control numbers, so if you are scrapping, stocking as is, returning to vendor, or creating a rework manufacturing order, you need to enter or select the control number to use.

Purchase Orders

Cost Updating

If you selected the Update average/actual costs? option in the System Options Maintenance (XM) program (Inventory Control Options), the system updates actual and average costs of purchased items when the invoice is received in accounts payable.

Landed Costs

If you use the standard cost method to track landed costs, the system incorporates standard landed costs into an item's cost when the invoice is received in accounts payable. You must set up landed cost codes and establish a cost percent for each in the Landed Cost Codes Maintenance (TMM) program. You must also select these codes in the Vendor Price Maintenance (VMM) program for items from specific vendors that are subject to landed costs.

The system uses the Cost % field for the landed cost code in Landed Cost Codes Maintenance to calculate the standard cost. When the invoice is received in accounts payable, the system adds this fixed percent to its purchase order cost. This received cost affects the item's actual and average cost.

Current actual cost = PO unit cost + (PO unit cost x Landed cost percent)

Average cost = ((Quantity on hand x Current average cost) + ((PO unit cost + (PO unit cost x Landed cost percent) x Quantity received)) / (Quantity on hand + Quantity received)

Units of Measure

For purchased items, the quantity received, inspected, and rejected are in purchasing units of measure. When the program moves the items into inventory, it converts the quantity from purchasing units to stocking units. For example, if you bought one package of twelve and stock in each, the program adds twelve to inventory.

For manufacturing orders, RMAs, and transfers, the program receives the stocking unit of measure.

Audit Trail

To activate an audit trail, select one of the files listed below in the Audit Trail Maintenance (XAT) program. The system records all transactions. You can click the Audit button to view and print changes to a record. You can also run the Audit Trails (ATR) program and select that file to print a report of these transactions.

  • I1T: Branch Transfer Header

  • I1TL: Branch Transfer Line

  • MP2: Mfg Order Master

  • VR1: Receiver Header

  • VR1B: Receiver Lines

  • VR1BD: Receiver Line Detail