Receipt Routing

Receipt Routing comes into picture whenever we receive the goods from suppliers. It is of 3 types

1.)   Direct

2.)   Standard

3.)   Inspection

Before receiving the goods, we need to ensure that our subinventories are created & Accounting periods are opened in Inventory, Purchasing & GL responsibilities

Create Subinvntories for the Inventory Organization

Navigate to Inventory Responsibility > Setup > Organization > Subinventory & give details as shown below

Open Periods in Purchasing: Navigate to Setup > Financials > Accounting > Control Purchasing Periods & give details as shown below

Open Periods in Inventory: Navigate to Accounting Close Cycle > Inventory Accounting Periods

Open Periods in GL: Navigate to Setup > Other > Open/Close

1.)   Receipt Routing with Receiving Method as Direct: In direct method, goods will be sent from gate directly to subinventories

Create a PO with type as standard & give details as shown below

Click on Shipments

Click on Receiving Controls & give Receipt Routing as Direct Delivery

Save & Approve the PO

Now Navigate to Receiving > Receipts

Give Sub Inventories Details & save the record

As soon as we save the record, a concurrent program ‘Receiving Transaction Processor’ will be submitted. We can check the status of the receipt. Navigate to Receiving > Receiving Transactions Summary 

Click on Transactions

Kindly note the following points

1.)   Receiving Transaction Processor (RTP) is going to generate accounting events depending upon receipt routing. If the routing is direct delivery, RTP will generate accounting event as receive & deliver simultaneously. Receive is an accounting event which is generated in Receiving Module where as Deliver is accounting event which is generated in Inventory.

2.)   If the routing is standard delivery, when we create a receipt, we receive the goods in receiving point. There we are going to perform visual inspection. At this stage only receipt accounting event is created. Later when we deliver the goods to stores, that time deliver accounting event will be generated.

3.)   If the routing is inspection required, we first receive the goods at gate, that time receive accounting event will be generated. Now the goods will be taken in receiving. Here we are going to perform physical inspection & will separate accepted quantities & rejected quantities. Accepted is delivered to stores. At that time delivery accounting event will be generated

The stock in the inventory will be updated only when it creates deliver accounting event

2.)   Receipt Routing with Receiving Method as Standard: In this method, the goods are moved to receiving area from gate. There a visual inspection happens & then the goods are moved to subinventories

Create a standard PO & give details as shown below

In order to receive the goods, navigate to Receiving > Receipts

Here the destination type is Receiving. If we want, we can change it to Inventory. If we want this field to be frozen & set to only receiving then we need to change the profile option ‘RCV: Allow Routing Override’ to no at responsibility level.

Save the form & a RTP request will be submitted in backend. We can check the status from Receiving > Receiving Transactions Summary

Now a visual inspection will happen & the goods will be sent to subinventory. To do so Navigate to Receiving > Receiving Transactions & give subinventory details

 Now we can see that a delivery has been created

3.)   Receipt Routing with Receiving Method as Inspection: Here goods will be received in receiving & a physical inspection will be done, then the goods will be sent to subinventories

Create a Standard PO & give details as shown below

Navigate to Receiving > Receipts

Save the record & check for receiving transactions summary

We need to do the inspection of the goods received. So navigate to Receiving > Receiving Transactions

Click on Inspect & give details as shown below

Save the record

Again check the receipt transaction summary

& Navigate to Receiving > Receiving Transactions

Assign Subinventory to the accepted items & save the record

Check for receiving transaction summary again

It shows that accepted goods are delivered.

This is how items are taken into our inventories from suppliers