You may accidentally receive in the wrong product or the wrong quantity of product, or at wrong cost or at the wrong time. In these cases, you may want to use the “Cancel Receipt” button to undo your receiving action, unravel the transaction, re-open the vendor PO, etc.
Consider the following exception processing scenarios and possible steps for correcting mistakes with PO receipts in Cetec ERP.
If you go to the PO Receipt object, and you see the Cancel Receipt link on the left side-nav menu (and it is not grayed out or disabled), most likely the system will allow you to cancel it.
Simply click the Cancel Receipt link and the system will undo the receipt, adjust back the inventory, re-open the vendor PO if necessary with updated backorder quantity, undo any financial ledger impact the initial receipt transaction had, and effectively unravel the receipt transaction to get you back to the point where you had not yet performed any receipt.
If the particular receipt you are attempting to undo has already been “used” on other transactions (e.g. picked/invoiced on another work order) or modified in some way (e.g. moved bin locations, adjusted inventory quantity on the receipt, etc.), the system will disable the cancel receipt function to mitigate unintended financial and system wide impact and provide a basic level of control and data integrity. Here are four reasons why the Cancel Receipt link may be disabled:
There is no PO line associated to the receipt (e.g. in the case of a non-PO receipt; to cancel this type of receipt, simply perform an inventory adjustment).
The receipt exists on a paid voucher (vendor invoice). You may have to unravel the vendor invoice transactions first in order to be able to cancel the PO receipt.
The parts on the receipt have been picked/consumed on another work order / invoice.
The receipt has already been changed on the bin level (e.g. an inventory/cost adjustment).
If there is no PO line associated to the receipt, e.g. in the case of a non-PO receipt, then to cancel this type of receipt, simply perform an inventory adjustment.
If the receipt exists on a paid voucher (vendor invoice), then to cancel this type of receipt, you may have to unravel the related vendor invoice/payment transactions first. To do this, talk to your accounting admin to ensure proper dating of these transactions, to ensure amounts are not being posted to dates in closed periods, etc.
If the parts on the receipt have been picked/consumed on another work order / invoice OR if the receipt has already been changed on the bin level (e.g. an inventory/cost adjustment), then any adjustments will be to the relevant Ledger accounts - please discuss with your CPA/CFO to identify what accounts and values to post.
For reference, listed below are some examples of this type of exception processing with manual journal entries. Please note - these are not formal recommendations nor approved in any manner by Cetec ERP as accounting best practice for your company. Rather, they are examples of how other companies have done exception processing with journal entries. For formal recommendation and validation, please work with your CPA/CFO.
- If you vouchered the vendor invoice with the Break Down/Split to Accrued Liabilities, then make the following journal entry:
- Credit Accrued Liabilities
- Debit Cost Of Goods Sold
- If you vouchered the vendor invoice with the Break Down/Split to Inventory/Raw Materials:
- Credit Inventory/Raw Materials
- Debit Cost Of Goods Sold
If only some of the parts received were consumed: - Make a manual ledger entry for the consumed quantity, the same as 1 or 2 above. - Then, adjust inventory for the part by editing the Bin for the receipt, changing the Bin Cost, selecting a Reason Code and inputting a Reason Comment, then click Set. - This transaction will Debit/Credit Inventory/Raw Materials and Debit/Credit the default account set in GL Transaction Mapping for Inventory Adjustment OR the Debit/Credit the account for the GL Account ID set for the Reason Code in Data Maintenance for InvShortageReason.