Commitments and Receipts

Once a request is approved, the Buyer issues it to the supplier. The approval time is stamped, an order reference is generated and the request becomes Ordered. When the goods or services arrive, the Receiving Clerk records the accepted quantity and the acceptance time on each line and matches the supplier’s invoice reference.

Over-receipt is refused unless it is explicitly authorized. When every line is recorded, the request becomes Received. Accepted quantities against requested quantities, and acceptance times against the required-by date, are what supplier performance is built on.

• Commitment only from approval. A commitment is issued only when an approval matches the current version.
• Accepted quantities count. The clerk records what passed inspection, which can be less than what was shipped.
• Invoice matched to accepted scope. The invoice reference sits on the accepted line, ready for payment checks.

Agree who issues commitments and how order references reach the supplier. Decide how partial deliveries are recorded and when a short delivery is closed. Agree who may authorize over-receipt and why. Plan how receiving data comes from your warehouse system.

The water order for 2,400 cases arrives on 3 June. Receiving inspects it and rejects 150 cases with damaged shrink wrap. The clerk records 2,250 accepted with the acceptance time and the supplier’s invoice reference.

The supplier offers to send 200 more cases to cover the damage. That would take accepted quantity above the 2,400 requested, so it is refused unless the buyer authorizes over-receipt. The buyer agrees to 150 only, keeping the line within the request.

At the end of each week, the analyst compares lines still awaiting receipt with their required-by dates. Lines past due without an acceptance are raised with the buyer, who chases the supplier or closes the shortfall so open quantity stays accurate.

• Open Orders — Ordered requests with order reference, required-by date and amount.
• Lines Awaiting Receipt — Lines with no acceptance recorded yet.
• Accepted Lines — Lines with accepted quantity, acceptance time and invoice reference.

• Demand to receipt: From commitment to accepted receipt.
• Supplier performance review: How acceptance feeds performance.

Plan the receiving connection before go-live.