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Receiving Extra Units that aren't invoiced

  • 29 February 2024
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We purchase labels on a spool of 25,000.   Our supplier always adds an additional 500 labels (for good measure) to every spool but does not invoice us for these extra units.  When receiving in the spools, is there a way to automatically “count-in” the additional 500 units so that the quantity on our handling units reflects what is actually on the spools?  We don’t want to increase the quantity on our PO’s because we aren’t being invoiced for that full amount.  We’ve considered using the inventory conversion factor and updating it to 1.02 but our finance department is worried about UOM conversions/reports/accounting entries as well as audits.   

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Best answer by svitello 2 March 2024, 17:52

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VivekBhandiwad
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Hi @svitello 

This is normally handled through Over delivery %, you may define Over delivery % as 0.021% ( higher than 0.02 which is 500 units out of 25000 ) and advise the system to generate a over-delivery alert, in case of exceeding 500, and accepting in case of below 500.

A warning message for equal to or less than 500 , and stoppage when exceeds 500.  In case you want to allow higer %, you may update the numbers accordingly. This setup is on the PURCHASE PARTS

 

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Hello @VivekBhandiwad ,

Thank you for your input! Unfortunately, I don't believe this would add the additional 500 units into inventory. It just allows a receipt over the original quantity.  We want to recieve just the original quantity of 25,000 on the PO because that is what we are invoiced for and then somehow automatically count in the additional 500 "extra and free" labels. We are looking for a recommendation on how best to achieve this. 

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