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Unordered Material Receipts Process-Receiving Without Approved PO

This document discusses handling receipt of materials that arrive at a warehouse without an approved purchase order. It describes creating an unordered material receipt to acknowledge receipt, holding the materials until the purchase order is approved, then matching the receipt to the approved purchase order. This allows receipt of urgent materials before purchase order approval while maintaining documentation in the system. The process involves three steps - creating an unordered receipt, matching to the approved purchase order, and receiving materials into inventory.

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Kasiviswanathan Muthiah
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178 views11 pages

Unordered Material Receipts Process-Receiving Without Approved PO

This document discusses handling receipt of materials that arrive at a warehouse without an approved purchase order. It describes creating an unordered material receipt to acknowledge receipt, holding the materials until the purchase order is approved, then matching the receipt to the approved purchase order. This allows receipt of urgent materials before purchase order approval while maintaining documentation in the system. The process involves three steps - creating an unordered receipt, matching to the approved purchase order, and receiving materials into inventory.

Uploaded by

Kasiviswanathan Muthiah
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Concept of UNORDERED MATERIAL RECEIPT – Solution

for handling system receiving without an approved PO.


Unordered material consists of items that arrive at the warehouse without
documentation, such as a purchase order. When material arrives at your warehouse
without documentation and you cannot link it to a backing document (Approved
PO), you must decide whether to return the items to the supplier or wait until the
PO is Approved to create the receipt in the system or create an unordered receipt.

Here we are going to discuss the 3rd option in detailed manner.

 Creating an unordered material receipt


Unordered material consists of items that arrive at the warehouse without
documentation, such as a purchase order. You can receive the material in a
hold area. This allows the warehouse to move the material away from the
receiving docks. The receiving personnel can work on performing other
receipts, while the manager searches for the correct document details (PO)
from the Purchasing Department / Supplier. Once you establish the
document association, you can match the unordered receipt to a document
and proceed with inspecting or putting away the material to storage.

Our Use Case:


Rayan PO 25171 is in the process of approval but the Item was urgent and was
delivered to the Property control / Consumption Point for physical usage. Property
Control Wants this delivery to be acknowledged in the system until the Approved
PO is ready. Once Approved PO is ready they would match this unordered receipt
to the Approved PO and rest of the Procure to Pay Cycle follows.

Unordered Material Receipt Process – Receiving without approved PO


-- Kasiviswanathan Muthiah ERP SCM
Step 1: Enter the receipts.

NAV: Receipts.

Click On “Unordered” option.

Unordered Material Receipt Process – Receiving without approved PO


-- Kasiviswanathan Muthiah ERP SCM
Enter the “Supplier Name”,” Supplier Invoice#” in the Receipt Header page and
then enter Item, UOM, Quantity in Receipts page and save.

Save

Go to Receiving Transaction Summary to see the associated transactions created in


the system.
Unordered Material Receipt Process – Receiving without approved PO
-- Kasiviswanathan Muthiah ERP SCM
Unordered Material Receipt Process – Receiving without approved PO
-- Kasiviswanathan Muthiah ERP SCM
STEP2: IF the PO is available, follow up to get the INPROCESS PO approved
otherwise get the PO created and approved.
In our case the PO 25171 now gets Approved by all the stake holders.

Step 3: Matching the Receipts with PO.

Unordered Material Receipt Process – Receiving without approved PO


-- Kasiviswanathan Muthiah ERP SCM
Give the Receipt number and supplier and click on Find.

Now you will get the Item and supplier details.

Unordered Material Receipt Process – Receiving without approved PO


-- Kasiviswanathan Muthiah ERP SCM
Give the PO number, Line, and shipment line number and save.

Now check the “Receiving Transaction Summary” form to check the transaction.

NAV: Receiving Transaction Summary.

You will find two lines (Unordered and match) as below. Check the destination type
(Receiving), which means that the item is received to the receiving place and not yet
moved to the required sub-inventory.

Unordered Material Receipt Process – Receiving without approved PO


-- Kasiviswanathan Muthiah ERP SCM
Step 4: Receiving to the sub-inventory.
Now we will receive the items from the receiving location to the sub-inventory.

NAV: Receiving Transactions.


Give the PO number and find.

Unordered Material Receipt Process – Receiving without approved PO


-- Kasiviswanathan Muthiah ERP SCM
Give the destination type as Inventory where the sub-inventory and Locator
becomes mandatory and save.

Capture the LOT details for Inventory Items and save.

Unordered Material Receipt Process – Receiving without approved PO


-- Kasiviswanathan Muthiah ERP SCM
Now check the receiving transaction summary form, and you will now see an
additional line as Deliver, which means the items is delivered to the specific sub-
inventory.

Unordered Material Receipt Process – Receiving without approved PO


-- Kasiviswanathan Muthiah ERP SCM
Summary:

 Unordered material consists of items that arrive at the warehouse without


documentation, such as a purchase order.

 “Allow Unordered receipts” allows to receive the goods without a PO. But
these goods can only be sent to the receiving area and not for the sub-
inventory.

 You must match unordered receipts to a valid document (PO) before you can
inspect or put away the receipt lines to specific sub inventory for issuances.

 Three step receipt process (Unordered, Match &Deliver) will be followed to


handle this “Unordered Material Receipts” Process.

 Impact on existing GRN related reports needs to be studied and fixed to


handle this new “Unordered Material Receipts” business process.

Unordered Material Receipt Process – Receiving without approved PO


-- Kasiviswanathan Muthiah ERP SCM

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