In this Document

Applies to:

Purpose

 To assist viewers of this document in verifying the common steps related to this topic.

Scope

 This document is intended for all users of the Procurement Application.

Details

RECEIPTS

Receiving setup has flexibility depending on how a business wants to receive items from inspecting items such as expensive machined parts or to avoid inspecting common office supplies such as pencils.

For a high level understanding of receiving there are things to be considered that have a very large impact on the amount of effort needed to process the receipt and the final destination of the item ordered.  This involves Receipt Routing and Destination Type.

RECEIPT ROUTING

Receipt routing decides how many 'channels' a receipt will have to go through before it is considered delivered to its final destination.  The final destination could be a locator in a subinventory within inventory or the desk of a user.  The key word is 'delivered'.  This word should be used with care in Oracle Receiving terminology because it means that an item has been sent to its final destination.  Even though it seems like only one transaction is created with Direct receipt routing, there are actually two transactions.  The 'receive' is first and the 'deliver' is the second.  To reduce the user's time and effort, the application processes both transactions as if they were one when a Direct receipt routing transaction is saved.

Standard receipt routing is a two-step process.   The transactions are still 'receive' and 'deliver'; however, with Standard receipt routing the 'receive' transaction is saved in one form (Receiving/Receipts) and the 'deliver' transaction is saved in another (Receiving/receiving Transactions).  For example, goods might be received, but someone may need to decide which location the goods are to be sent.  The goods might sit on a dock while waiting to be 'delivered' to a final destination.

Inspection receipt routing is a three-step process.  In this type of situation, there is a 'receive', 'accept' or 'reject' transaction and a 'deliver' transaction.

For all three receipt routings, the 'receive' transactions are always created in the Receipts form (Receiving/Receipts). 

Receipt Routing in the Organization form.
Setup:Organizations:Receiving Options - select an Inventory Organization

With Standard receipt routing, the 'deliver' transaction is performed in the Receiving Transactions form.  For Inspection receipt routing, the 'accept', 'reject' and 'deliver' transactions are performed by the Receiving Transaction form (Receiving/Receiving Transactions).

Receipt routing of Shop Floor is only possible for outside processing items.  This type of transaction is only used when the WIP module is installed and can be quite involved in setting up and will not be reviewed in this document.

There are several places where the Receipt Routing can be sourced.  The first place is the Receiving Options form (Setup/Organizations/Receiving Options).  The other places are the Suppliers form, the Receiving Controls form and the Organization/Master Items form.  If the Receipt Routing is only entered in the Receiving Options form, then all receipts will use whatever routing method is entered in the Receiving Options form.  The Receipt Routing in the Receiving Options form is overridden by the Receipt Routing in the Supplier form.  For example, if a client has their receipt Routing set to Direct in the Receiving options form and they see the Receipt Routing to Standard Receipt Routing while receipts from all other suppliers will have a Direct receipt routing.  The Suppliers Receipt Routing is overridden by the Receipt Routing in the Master or Organization Items form and the Receipt Routing for the Master or Organization Items form is overridden by the Receiving controls form for a specific Purchase Order.  Displayed are screen shots from forms where the Receipt Routing can be entered.

Receipt Routing on the Suppliers form
Supply Base:Suppliers - Query a supplier
Reporting:Receiving

Receipt Routing on the Organization form.
Items:Organization Items - Query an item
Select Receiving Tab

Receipt Routing on the Receiving Controls form.
Purchase Orders:Purchase Orders - Query a PO
Shipments button on the Receiving Controls button

If a user is uncertain of the Receipt Routing it is simple to go to the Receipts form or the Receiving Transaction form and view it there.  It is displayed as a view only field in the lower right side of the form where the receipt lines are shown.

DESTINATION TYPES

The Destination Type column in the Receipt form and the Receiving Transactions form show where the receipt will need to go next to be processed.  When the destination type shows Expense, Shop Floor or Inventory, the transaction being entered will be the final transaction or the deliver transaction needed to complete the receiving process.  When the destination type shows Receiving then the receipt routing is either Standard or Inspection meaning more then one step is need before the items are delivered.

If the receipt routing is direct, the destination type will show Inventory, Expense or Shop Floor.  This is seen in the Receipt form (Receiving/Receipts).  When the receipt routing is standard or inspection, the destination type will show Receiving in the Receipt form and will show Inventory, Expense or Shop Floor in the Receiving Transactions form (Receiving/Receiving Transactions).

Destination Type value in the Receipts form.
Receiving:Receipts - query a PO

An expense item can have a destination type of Inventory under the following circumstances:
- Inventory item attributes enabled
- Item is accrued on receipt
- Item is NOT inventory asset value enabled
- Item is going to be delivered to an expense subinventory
However, if that same item is accrued at period end it can only have a destination type of Expense.

The destination type for expense items should be determined when the Requisition or Purchase Order is created and before the line is saved.  The destination type is set in the Distribution form under the Destination alternate region.  To check the setting for the Accrue on Receipt flag, click on the alternate region called More in the Shipments form.  All items with a destination type of Inventory must be accrue on receipt.

Destination Type value in Distribution form.
Purchase Orders:Purchase Orders - Shipments button then Distribution button in the Destination tab

CREATING NEW RECEIPTS

When items arrive, receipts need to be created.  To find expected receipts, go to the Receipt form (Receiving/Receipts) and enter the search criteria in the Find Expected Receipts form.  A common error displayed in the toolbar after entering the search criteria and the Find button is pressed is FRM-40212: Invalid value for field PO_NUM.

Usually, this error is seen when either the purchase order is closed, isn't approved or isn't being shipped to the organization code is shown on all receiving forms window name in parentheses next to the window name.  It mush match the organization code shown in the Ship To column of the Shipments form for PO.  (Purchase Orders/Purchase Orders - Shipments button) or the shipment information can also be viewed in the Purchase Order Summary form when querying the shipments of a purchase order.  The ship to organization shown in the shipment form or the summary form is the organization where the receipt must be created.

Picture

If the purchase order is approved and is being received in the correct organization, then the purchase order is most likely closed for receiving.  To search for closed orders, check the box 'Include Closed PO's' on the Find Expected Receipts form.  To set this box to be checked each time the form is entered set the system profile option called RCV: Default Include Closed PO Option to "Yes" (System Adminstrator: Profile/System).

In the Receipt Header form the Receipt Date field must be within an open GL, PO and INV period.  If all three modules appear to be open and the error mentioning the period being closed is still displayed then confirm that the Open and Closed Periods form (PO Responsibility: Setup/financials/Accounting/Open and Closed Periods) shows the correct set of books name in parenthesis and is the same as the set of books for the inventory organization for which the recept is being generated.  If it's wrong query the system profile option called GL Set of books Name for the site, application, responsibility and user and correct value.

It is possible to setup items to inventory so that a subinventory and locator are automatically populated in the Receipts and/or Receiving Transaction forms with a single default subinventory and single default locator.  To do this, go to (Inventory: Setup/Transactions/Item Transaction Defaults) and create a new record in the subinventory alternate region as well as the locator alternate region.

Express and Cascade receipts can be created in the Receipts form.  Express receipts allows users to receive multiple lines at one time and Cascade receipts allow users to receive multiple shipments of the same item at one time. 

WHAT IS THE PURPOSE OF EACH RECEIVING FORM?

PROCESSING MODES

There are three processing modes which receipts can be processed; On-line, Immediate, and Batch.  On-Line processes the transaction when saved.  Batch mode processes the transaction when the Receiving Transaction Processor is run.  Immediate mode transactions go into the interface table and the Receiving Transaction Processor is called to process the group of transactions entered since you last saved your work.  The receiving Transaction processor can be run by going to Reports: Run or it can be setup to run on a schedule.  The RCV: Processing mode profile option is set by going to (System Admininstrator: Profile/System).  It can also be set within Purchasing responsibility by going to (Purchasing Responsibility: Personal Profiles).  Setting this value at the user level will allow some users to process their transactions in Batch mode while others process theirs in Immediate or On-line mode.

The high point of using On-Line processing is that receipt errors are seen as soon as save is pressed.  If the receipt saves without error the transaction processed without error.  If the processing mode is On-Line and destination type of the transaction says Inventory, then the on hand quantity is updated as soon as the transaction is saved.  The low point of On-Line processsing is that the more resources are used to save each transaction.

MANAGING STUCK RECEIPTS

To ensure that receipts processes correctly users can go to (Receiving/Transaction Status Summary).  In this form any errored receipts for the organization can be seen.  If any receipts exist in the form, then a user can look at the error to find out what may have caused the error.

If there is no error, then there is a good chance that the processing mode is batch and the processor hasn't run yet.  If the user is interested in trying to create the transaction again, the transaction can be safely deleted from the system by clicking on the 'X' icon in the Transaction Status Summary form toolbar.  Once that is complete the user can re-enter the transaction. 

MAINTAINING RECEIPTS

For monitoring errored receipts on a regular basis run the report 'Receiving Interface Errors Report from (Reports/Run). 

It is possible to view the receiving transactions that have gone to inventory by switching to an inventory responsibility (Transactions/Material Transactions).

If it seems that the inventory on-hand quantity was not updated and the receiving processing mode is either batch or immediate and the receiving transaction processor has processed the records without any errors being seen in the Transaction Status Summary form, then it's possible that the receiving transaction could be stuck in the MTL_MATERIAL_TRANSACTIONS_TEMP table.  To view the records in the table go to Inventory responsibility (Transactions/Pending Transactions).  There are a few reasons that records could be in the Pending Transaction form.  One could be that the Inventory Interface Manage is not active.  To check this (Inventory: Setup/Transactions/Interface Managers).  Another reason could be that the transaction failed inventory validation.  If this is the case, the error message should be displayed in the pending Transactions form.  Any records seen in this form cannot be deleted.  These issues are worked by the Inventory team.

One last tip on the relationship between receiving transactions and inventory transactions is that receipts with inventory destinations having a TRANSACTION_TYPE of DELIVER, CORRECT or RETURN will have a TRANSACTION_ID that is equal to the RCV_TRANSACTION_ID in the MTL_MATERIAL_TRANSACTIONS table.  The Technical Referance Manual for the RCV_TRANSACTIONS table reads that the INV_TRANSACTION_ID ties to the MTL_MATERIAL_TRANSACTIONS.  The technical translation of the above: RCV_TANSACTIONS:TRANSACTION_ID=MTL_MATERAIL_TRANSACTIONS.RCV_TRANSACTION_ID.