Receiving and invoices

A goods receipt records a delivery against a purchase order: the receipt number, date, carrier PRO number, supplier, warehouse and who received it. Each line records the product, lot and serial, the quantity received, accepted and rejected, the bin, the purchase order line and a disposition: Accept, Quarantine, Reject or Return to Vendor. Receipts move from Pending to Pending QC while quality inspects, then to Accepted, Partially Accepted or Rejected, and to Put Away once stock is in its bins.

Supplier invoices are matched to the purchase order and the goods receipt. The match is Unmatched until checked, Matched when quantity and price agree, Variance when they do not, Approved once the Procurement Manager accepts it, and Paid by AP once your payables system pays.

• Line-level receipt. Each line has its own quantities, bin and disposition, so a partial reject does not hold the whole delivery.
• Inspect before putaway. Receipts wait at Pending QC until quality releases them.
• Three-way match. Each invoice is checked against the order and the receipt before approval.

Agree which products need incoming inspection and which skip. Agree the receiving bins and quarantine area per warehouse. Agree the price and quantity tolerances for invoice matching and who approves a variance. Decide how a return to vendor is raised from a rejected line.

The primary supplier’s truck delivers 1,120 bags of resin on February 18 to Dallas. The Warehouse Operator records the receipt against the order with the carrier PRO number and one line: 1,120 received into the receiving bin, lot R-2602. The receipt moves to Pending QC. The Quality Manager samples to the AQL plan and finds 40 bags torn. The line is updated to 1,080 accepted and 40 rejected, the receipt becomes Partially Accepted, and a nonconformance is opened for the 40.

The accepted bags are put away. The supplier’s invoice arrives for 1,120 bags. The buyer matches it to the order and receipt and gets a Variance for the 40 rejected bags. The Procurement Manager approves the invoice after the supplier issues a credit note, and it moves to Paid by AP when payables pays.

• Receipts Pending QC — Receipts waiting for inspection, with order, supplier and warehouse.
• Supplier Invoice Match — Invoices by match status with order, receipt, amounts and due date.

• Purchase order to goods receipt: Receive and inspect.
• Supplier invoice match: Match and approve the invoice.

Connect your payables system before the first payment run.