Bulk Materials Processing

[iceflow]

Looking for advice on how to handle situations where bulk material receipts are estimates from the supplier and exact qty's and pricing not known until invoice. Material needs to be received into JDE to feed the production process, so this cannot be delayed until the actuals are known. It looks to me like a variance processing nightmare or a new hire to sit and tweak the P4312 to align the original receipts with the actual numbers when they become known. Customer in question buys in large quantities of product, mostly it is FOB at point of railcar load or injection into a pipeline. Possibly receipt routing may be a solution.

 

[Aarto]

Howdy! Unfortunately, receipt routing does not work with bulk products. We solved a similar problem earlier (We had to receipt the volume and quantity imvoiced due to FOB and handle gainloss.

We solved this by

1. creating a tank-to-tank transfer from an empty "dummy" tank (we called it "shore tank") to the receiving tank for the physically received volume

2. When invoiced volume is known, a receipt is made to the dummy tank for that volume. Variance (gainloss) is then known and can be adjusted

We allowed the stock go negative in the dummy tank and this would obviously not work for you if you are using average cost.

Another idea we did discuss was to always make sure we under-receipted purchase order lines so there would be some quantity left open. (or create an extra purchase order line for future handling of the difference only)
We would first receipt the physicaly volume into stock.
When the invoice came, we would receipt the remaining quantity to cover for the difference (+ or - receipt) and the create a gainloss adjustment for the same volume


Hope this helps