Receiving a Purchase Order

To receive a purchase order, do the following:

1. Go to the Purchase Order Receiving form.
2. You can search for a purchase order by vendor, GRN, PO, or PO Line Release.
3. Update any header information, if necessary, such as GRN Receipt, Packing Slip, or Trans Date.
4. Select a purchase order. You can choose an individual PO by selecting the Select check box on that PO, or choose all POs by clicking Select All.
5. Update any information about the selected PO.
6. Click Receive to receive the PO.

Receiving Cross-Referenced Material

If you are receiving a material that is cross referenced to a job, order, or project, you must have additional permissions in order to complete the receipt. See Receiving Cross-Referenced Items for additional information.

Receiving Items from a Customer

To receive items returned from a customer, use the RMA Return Transaction activity. For more information, see the About Return Receipt help topic.

Serial Number Tracked Items

When you enter a purchase order receiving transaction for a serial number-tracked item, you should be aware of certain special cases. See Handling PO Receipts and Returns for Serial Tracked Items.

Landed Costs

Landed cost (freight, duty, etc.) field values will default from the purchase order item during receiving.

When the purchase order is received, landed cost receipt records are created for each of the landed cost amounts on each PO item. The amounts on the landed cost receipt record are in the currency of the landed cost vendor.

You can update the landed cost amounts either in the PO currency by using the fields on the Detail tab, or in the landed cost vendor's currency by using the fields on the Landed Cost tab. If you override a landed cost amount on the Detail tab, it is updated on the Landed Cost tab in the foreign currency, and vice versa.

Any modifications of the landed costs at receiving updates the purchase order line. When a standard cost item is received, the landed costs on the purchase order line are compared to the standard landed costs on the Items form. Any variances are written to the PO Distribution Journal.

A General Ledger transaction is created that debits the Inventory and credits the Accounts Payable, Duties Payable, Freight Payable, Brokerage Payable, Insurance Payable, and Local Freight Payable Accounts, if applicable. When the landed cost amounts are posted to the General Ledger, each of the amounts is converted from the vendor's currency to the domestic currency based on the transaction date's exchange rate.

If Standard costing is used, the following occurs:

• Inventory Account is debited for the total standard cost (standard material, duty, freight, brokerage, insurance, and local freight).
• Vouchers Payable is credited for the standard material.
• Duties Payable Account is credited for the standard duty.
• Freight Payable Account is credited for the standard freight.
• Brokerage Payable Account is credited for the standard brokerage.
• Insurance Payable Account is credited for the standard insurance.
• Local Freight Payable Account is credited for the standard local freight.
• Any variances from the standard are posted to the appropriate variance accounts.

If Actual costing is used, the following occurs:

• Inventory Account is debited for the total item cost (material, duty, freight, brokerage, insurance, and local freight).
• Appropriate Payable Accounts are credited.

If actual values are unknown at the time of the receipt, the values default from the purchase order line item costs.

Related Topics

Purchasing Overview

Purchasing Steps

Receiving Cross-referenced Items

Returning Material After Receiving a Purchase Order