Although items are received through the Purchasing module, all affected item balances in the Inventory module are updated automatically. The method of receipt determines the item balances that are affected. There are two methods of receipt available: receiving without inspection and receiving with inspection.

Depending on which method you select, different item balances will be affected at various times.

• Receiving Without Inspection

Receiving items without inspection is the standard method of receipt taught in the Receiving CBT and Handbook. When a receipt is recorded in the Purchasing module, the items received are automatically added as active inventory. This causes the on-hand balances to increase by the received quantity while the on-order balance decreases by the same quantity. For a refresher on receiving items without inspection, refer to the following procedures:

The NCAS allows both overshipments and undershipments to be processed when receiving items without inspection. Overshipments occur when the received quantity is greater than the ordered quantity. In such a case, the on-hand balance is increased by the quantity received, while the on-order balance is decreased only by the quantity ordered. In other words, the NCAS does not allow the on-order balance to drop below zero.

An undershipment occurs when the received quantity is less than the ordered quantity. When this happens, the on-hand balance and the on-order balance are both adjusted by the quantity actually received. Thus, the remaining on-order quantity reflects the quantity not received, and the purchase order stays open.

• Receiving With Inspection

Warehouse managers may choose to have inventory items inspected before they are placed into the active inventory pool. This is called dock-to-stock processing. If this method is selected, the receipt of items is not complete until the inspection process is completed in the NCAS. In other words, on-hand and on-order balances in the Inventory module are not affected until the items are inspected. Prior to this time, only the non-active balance in the Inventory module is increased by the quantity received. To learn more about how to use the dock-to stock inspection feature in the NCAS, refer to the Dock-to-Stock Processing training course.

Receiving By PO Line Number Step-by-Step

Receiving By Item Number Step-by-Step