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Brad Plies

Users - Receiving inventory w/o PO

Hi folks,

Suppose there is a need to record and track an incoming shipment that is
not associated with a Purchase Order? Perhaps an item that is a
promotional gift from a supplier or an item from a customer who is not
ordinarily a supplier? Through the facility manager you can create an
incoming shipment, however I cannot figure out how to actually receive
it. Under "Receive Inventory" it requires a PO#. Is there an existing
way to complete the incoming shipment and have inventory properly
adjusted? Creating a PO for the shipments where the price is FREE is
not an option because it would throw off COGS as well as confuse some
customers when they look at their order histories. There is a way to
manually post a specific product under "Receive Inventory", however it
does not refer with the incoming shipment.

Any ideas?

Brad

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Ian Gilbert-2

Re: Users - Receiving inventory w/o PO

Hi Brad,

There is a section which is usually used to post inventory that is 'found' or otherwise correct
inventory levels. I think it's in the Invenory recieve section of the facilities module.

Ian

On Mon, April 3, 2006 23:35, Brad wrote:

> Hi folks,
>
>
> Suppose there is a need to record and track an incoming shipment that is
> not associated with a Purchase Order? Perhaps an item that is a promotional gift from a supplier
> or an item from a customer who is not ordinarily a supplier? Through the facility manager you can
> create an incoming shipment, however I cannot figure out how to actually receive it. Under
> "Receive Inventory" it requires a PO#. Is there an existing
> way to complete the incoming shipment and have inventory properly adjusted? Creating a PO for the
> shipments where the price is FREE is not an option because it would throw off COGS as well as
> confuse some customers when they look at their order histories. There is a way to manually post a
> specific product under "Receive Inventory", however it does not refer with the incoming shipment.
>
> Any ideas?
>
>
> Brad
>
>
>
> _______________________________________________
> Users mailing list
> [hidden email]
> http://lists.ofbiz.org/mailman/listinfo/users
>
>

--
Ian Gilbert
www.ethicalshopper.net
Fair trade: the alternative choice for your everyday shopping
0845 456 2429

WHAT DO YOU DRINK AT WORK?
We can supply your organisation with high quality fair trade tea and
coffee. Discounts are available for regular orders. Contact us for more
details.

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Ian Gilbert-2

Re: Users - Receiving inventory w/o PO

In reply to this post by Brad Plies

My mistake. It's in the 'Inventory Items' section. If you specify the item then you can adjust
it at the bottom in the 'Physical Inventory Variances' sectoin.

Best wishes

ian

On Mon, April 3, 2006 23:35, Brad wrote:

Brad Plies

Re: Users - Receiving inventory w/o PO

In reply to this post by Brad Plies

Thanks for the suggestion Ian. The problem however is that an incoming shipment will have an associated
party who is sending the products in. Simply using the inventory variance would not be sufficient because
it would lose the party relationships. The sending party will still not see that their incoming shipment
has arrived, and what (if anything) was rejected. Additionally the system would lose any trail of what
happened to the items contained within the shipment (such as where they were stored, who processed the
package, etc.)

Consider the case where your company offers a grading / assay / authentication service for certain products. A customer
wants to use that service. Somehow you must create an incoming shipment associated to that customer. You cannot, however,
use a PO because you (the receiver) aren't actually purchasing the item(s). When the shipment is received, inventory needs
to be updated to reflect that these items are located somewhere under your control (forget for a moment about complexity involving
avoiding fulfilling someone else's order with this product that we didn't purchase).

It is almost as if a new ORDER TYPE is necessary instead of SALES & PURCHASE ORDER such as a DEPOSIT ORDER or something that
would represent an order for incoming products that you aren't purchasing and are not assets owned by your company. Then the
"Receive Inventory" tools would need to permit lookup of either a PURCHASE or DEPOSIT order.

Does anyone see what I'm getting at? Does this make sense? Is there any out-of-the-box way to accommodate this?

Thanks,

Brad

> My mistake. It's in the 'Inventory Items' section. If you specify the item then you can adjust
> it at the bottom in the 'Physical Inventory Variances' sectoin.

>> On Mon, April 3, 2006 23:35, Brad wrote:
>>/ Hi folks,
/>>/
/>>/
/>>/ Suppose there is a need to record and track an incoming shipment that is
/>>/ not associated with a Purchase Order? Perhaps an item that is a promotional gift from a supplier
/>>/ or an item from a customer who is not ordinarily a supplier? Through the facility manager you can
/>>/ create an incoming shipment, however I cannot figure out how to actually receive it. Under
/>>/ "Receive Inventory" it requires a PO#. Is there an existing
/>>/ way to complete the incoming shipment and have inventory properly adjusted? Creating a PO for the
/>>/ shipments where the price is FREE is not an option because it would throw off COGS as well as
/>>/ confuse some customers when they look at their order histories. There is a way to manually post a
/>>/ specific product under "Receive Inventory", however it does not refer with the incoming shipment.
/>>/
/>>/ Any ideas?
/>//>/
/>>/ Brad/

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Ian Gilbert-2

Re: Users - Receiving inventory w/o PO

How about setting up another warehouse (facility) and then doing an inventory transfer?
Effectively the customer would be the warehouse and you could move stock that way? I guess there
would be issues there as they would also be a supplier ...

Or possibly one of the 'rental' models? Showing it as a service rather than as a product?

Sorry. It's late here and I'm not sure if that's useful or not. Will have a look in the morning
and see if anyone else has had any useful comments.

Best wishes

Ian

On Tue, April 4, 2006 01:17, Brad wrote:

> Thanks for the suggestion Ian. The problem however is that an incoming shipment will have an
> associated party who is sending the products in. Simply using the inventory variance would not be
> sufficient because it would lose the party relationships. The sending party will still not see
> that their incoming shipment has arrived, and what (if anything) was rejected. Additionally the
> system would lose any trail of what happened to the items contained within the shipment (such as
> where they were stored, who processed the package, etc.)
>
> Consider the case where your company offers a grading / assay / authentication service for
> certain products. A customer wants to use that service. Somehow you must create an incoming
> shipment associated to that customer. You cannot, however, use a PO because you (the receiver)
> aren't actually purchasing the item(s). When the shipment is received, inventory needs to be
> updated to reflect that these items are located somewhere under your control (forget for a moment
> about complexity involving avoiding fulfilling someone else's order with this product that we
> didn't purchase).
>
> It is almost as if a new ORDER TYPE is necessary instead of SALES & PURCHASE ORDER such as a
> DEPOSIT ORDER or something that
> would represent an order for incoming products that you aren't purchasing and are not assets owned
> by your company. Then the "Receive Inventory" tools would need to permit lookup of either a
> PURCHASE or DEPOSIT order.
>
>
> Does anyone see what I'm getting at? Does this make sense? Is there any out-of-the-box way to
> accommodate this?
>
> Thanks,
>
>
> Brad
>
>
>> My mistake. It's in the 'Inventory Items' section. If you specify the item then you can
>> adjust it at the bottom in the 'Physical Inventory Variances' sectoin.
>
>
>>> On Mon, April 3, 2006 23:35, Brad wrote:
>>> / Hi folks,
>>>
> />>/
> />>/
> />>/ Suppose there is a need to record and track an incoming shipment that is
> />>/ not associated with a Purchase Order? Perhaps an item that is a promotional gift from a
> supplier />>/ or an item from a customer who is not ordinarily a supplier? Through the facility
> manager you can />>/ create an incoming shipment, however I cannot figure out how to actually
> receive it. Under />>/ "Receive Inventory" it requires a PO#. Is there an existing
> />>/ way to complete the incoming shipment and have inventory properly adjusted? Creating a PO
> for the />>/ shipments where the price is FREE is not an option because it would throw off COGS as
> well as />>/ confuse some customers when they look at their order histories. There is a way to
> manually post a />>/ specific product under "Receive Inventory", however it does not refer with
> the incoming shipment. />>/
> />>/ Any ideas?
> />//>/
> />>/ Brad/
>
>
>
> _______________________________________________
> Users mailing list
> [hidden email]
> http://lists.ofbiz.org/mailman/listinfo/users
>
>

Yousef Shemisa

Re: Users - Receiving inventory w/o PO

In reply to this post by Brad Plies

Brad,

This is a very interesting point you raise, IMHO. Perhaps clouding the issue
is the fact that the items/scenarios you have described don't technically
fall under asset-based inventory (at least not according to the GAAP in the
US.) These items are commonly accounted for as "consigned inventory" or
"consigned stock" where the title to the goods remains with the "consignor"
(the sending party) and does not attach to the receiver (the "consignee".)
This would normally be the case even for services or inventory items that
might be combined /integrated with the consignee's asset-inventory items for
resale. Some scenarios would dictate that the consigned items be charged to
the COGS of the consignee and in other cases not. The later would apply to a
systems integrator type of consignee who contract manufactures computers
from inventory parts and also adds third party components that the OEM
(consignor - customer) buys directly and ships to the consignee for later
integration.

HTH,

Yousef Shemisa

----- Original Message -----
From: "Brad" <[hidden email]>
To: <[hidden email]>
Sent: Monday, April 03, 2006 17:17
Subject: Re: [OFBiz] Users - Receiving inventory w/o PO

Thanks for the suggestion Ian. The problem however is that an incoming
shipment will have an associated
party who is sending the products in. Simply using the inventory variance
would not be sufficient because
it would lose the party relationships. The sending party will still not see
that their incoming shipment
has arrived, and what (if anything) was rejected. Additionally the system
would lose any trail of what
happened to the items contained within the shipment (such as where they were
stored, who processed the
package, etc.)

Consider the case where your company offers a grading / assay /
authentication service for certain products. A customer
wants to use that service. Somehow you must create an incoming shipment
associated to that customer. You cannot, however,
use a PO because you (the receiver) aren't actually purchasing the item(s).
When the shipment is received, inventory needs
to be updated to reflect that these items are located somewhere under your
control (forget for a moment about complexity involving
avoiding fulfilling someone else's order with this product that we didn't
purchase).

It is almost as if a new ORDER TYPE is necessary instead of SALES & PURCHASE
ORDER such as a DEPOSIT ORDER or something that
would represent an order for incoming products that you aren't purchasing
and are not assets owned by your company. Then the
"Receive Inventory" tools would need to permit lookup of either a PURCHASE
or DEPOSIT order.

Does anyone see what I'm getting at? Does this make sense? Is there any
out-of-the-box way to accommodate this?

Thanks,

Brad

> My mistake. It's in the 'Inventory Items' section. If you specify the
item then you can adjust
> it at the bottom in the 'Physical Inventory Variances' sectoin.

>> On Mon, April 3, 2006 23:35, Brad wrote:
>>/ Hi folks,
/>>/
/>>/
/>>/ Suppose there is a need to record and track an incoming shipment that
is
/>>/ not associated with a Purchase Order? Perhaps an item that is a
promotional gift from a supplier
/>>/ or an item from a customer who is not ordinarily a supplier? Through
the facility manager you can
/>>/ create an incoming shipment, however I cannot figure out how to
actually receive it. Under
/>>/ "Receive Inventory" it requires a PO#. Is there an existing
/>>/ way to complete the incoming shipment and have inventory properly
adjusted? Creating a PO for the
/>>/ shipments where the price is FREE is not an option because it would
throw off COGS as well as
/>>/ confuse some customers when they look at their order histories. There
is a way to manually post a
/>>/ specific product under "Receive Inventory", however it does not refer
with the incoming shipment.
/>>/
/>>/ Any ideas?
/>//>/
/>>/ Brad/

_______________________________________________
Users mailing list
[hidden email]
http://lists.ofbiz.org/mailman/listinfo/users

_______________________________________________
Users mailing list
[hidden email]
http://lists.ofbiz.org/mailman/listinfo/users

David E. Jones

Re: Users - Receiving inventory w/o PO

This is a good point: receiving a shipment without having source and cost information that is usually in an order and such does introduce difficulties in the accounting side of things.

If this isn't your own inventory and you don't want to account for it, then that makes it easier. You just want to keep track of what you've got on hand that belongs to someone else, like Yousef describes.

In that case it sounds like what you want simply hasn't been build and a fairly simple UI and supporting services for receiving a shipment directly that isn't associated with an order would be the way to go. For shipment items that are associated with an order you could process them normally and for those that aren't I guess you just pop it into inventory items with the from partyId on the Shipment, or something along those lines.

If you don't even need/want a Shipment, you could create a UI that would support that and just require the user to enter all the data you need for each thing.

-David

Yousef Shemisa wrote:

> Brad,
>
> This is a very interesting point you raise, IMHO. Perhaps clouding the issue
> is the fact that the items/scenarios you have described don't technically
> fall under asset-based inventory (at least not according to the GAAP in the
> US.) These items are commonly accounted for as "consigned inventory" or
> "consigned stock" where the title to the goods remains with the "consignor"
> (the sending party) and does not attach to the receiver (the "consignee".)
> This would normally be the case even for services or inventory items that
> might be combined /integrated with the consignee's asset-inventory items for
> resale. Some scenarios would dictate that the consigned items be charged to
> the COGS of the consignee and in other cases not. The later would apply to a
> systems integrator type of consignee who contract manufactures computers
> from inventory parts and also adds third party components that the OEM
> (consignor - customer) buys directly and ships to the consignee for later
> integration.
>
> HTH,
>
> Yousef Shemisa
>
>
> ----- Original Message -----
> From: "Brad" <[hidden email]>
> To: <[hidden email]>
> Sent: Monday, April 03, 2006 17:17
> Subject: Re: [OFBiz] Users - Receiving inventory w/o PO
>
>
> Thanks for the suggestion Ian. The problem however is that an incoming
> shipment will have an associated
> party who is sending the products in. Simply using the inventory variance
> would not be sufficient because
> it would lose the party relationships. The sending party will still not see
> that their incoming shipment
> has arrived, and what (if anything) was rejected. Additionally the system
> would lose any trail of what
> happened to the items contained within the shipment (such as where they were
> stored, who processed the
> package, etc.)
>
> Consider the case where your company offers a grading / assay /
> authentication service for certain products. A customer
> wants to use that service. Somehow you must create an incoming shipment
> associated to that customer. You cannot, however,
> use a PO because you (the receiver) aren't actually purchasing the item(s).
> When the shipment is received, inventory needs
> to be updated to reflect that these items are located somewhere under your
> control (forget for a moment about complexity involving
> avoiding fulfilling someone else's order with this product that we didn't
> purchase).
>
> It is almost as if a new ORDER TYPE is necessary instead of SALES & PURCHASE
> ORDER such as a DEPOSIT ORDER or something that
> would represent an order for incoming products that you aren't purchasing
> and are not assets owned by your company. Then the
> "Receive Inventory" tools would need to permit lookup of either a PURCHASE
> or DEPOSIT order.
>
> Does anyone see what I'm getting at? Does this make sense? Is there any
> out-of-the-box way to accommodate this?
>
> Thanks,
>
> Brad
>
>> My mistake. It's in the 'Inventory Items' section. If you specify the
> item then you can adjust
>> it at the bottom in the 'Physical Inventory Variances' sectoin.
>
>
>>> On Mon, April 3, 2006 23:35, Brad wrote:
>>> / Hi folks,
> />>/
> />>/
> />>/ Suppose there is a need to record and track an incoming shipment that
> is
> />>/ not associated with a Purchase Order? Perhaps an item that is a
> promotional gift from a supplier
> />>/ or an item from a customer who is not ordinarily a supplier? Through
> the facility manager you can
> />>/ create an incoming shipment, however I cannot figure out how to
> actually receive it. Under
> />>/ "Receive Inventory" it requires a PO#. Is there an existing
> />>/ way to complete the incoming shipment and have inventory properly
> adjusted? Creating a PO for the
> />>/ shipments where the price is FREE is not an option because it would
> throw off COGS as well as
> />>/ confuse some customers when they look at their order histories. There
> is a way to manually post a
> />>/ specific product under "Receive Inventory", however it does not refer
> with the incoming shipment.
> />>/
> />>/ Any ideas?
> />//>/
> />>/ Brad/
>
>
> _______________________________________________
> Users mailing list
> [hidden email]
> http://lists.ofbiz.org/mailman/listinfo/users
>
>
>
> _______________________________________________
> Users mailing list
> [hidden email]
> http://lists.ofbiz.org/mailman/listinfo/users

_______________________________________________
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Adrian Crum

Re: Users - Receiving inventory w/o PO

This sort of thing would be beneficial to a company like the packaging company I
mentioned before. If you're packaging someone else's products, then you need to
receive the raw materials into inventory, but you don't actually own them.

David E. Jones wrote:

> This is a good point: receiving a shipment without having source and cost information that is usually in an order and such does introduce difficulties in the accounting side of things.
>
> If this isn't your own inventory and you don't want to account for it, then that makes it easier. You just want to keep track of what you've got on hand that belongs to someone else, like Yousef describes.
>
> In that case it sounds like what you want simply hasn't been build and a fairly simple UI and supporting services for receiving a shipment directly that isn't associated with an order would be the way to go. For shipment items that are associated with an order you could process them normally and for those that aren't I guess you just pop it into inventory items with the from partyId on the Shipment, or something along those lines.
>
> If you don't even need/want a Shipment, you could create a UI that would support that and just require the user to enter all the data you need for each thing.
>
> -David
>
>
>
> Yousef Shemisa wrote:
>
>>Brad,
>>
>>This is a very interesting point you raise, IMHO. Perhaps clouding the issue
>>is the fact that the items/scenarios you have described don't technically
>>fall under asset-based inventory (at least not according to the GAAP in the
>>US.) These items are commonly accounted for as "consigned inventory" or
>>"consigned stock" where the title to the goods remains with the "consignor"
>>(the sending party) and does not attach to the receiver (the "consignee".)
>>This would normally be the case even for services or inventory items that
>>might be combined /integrated with the consignee's asset-inventory items for
>>resale. Some scenarios would dictate that the consigned items be charged to
>>the COGS of the consignee and in other cases not. The later would apply to a
>>systems integrator type of consignee who contract manufactures computers
>>from inventory parts and also adds third party components that the OEM
>>(consignor - customer) buys directly and ships to the consignee for later
>>integration.
>>
>>HTH,
>>
>>Yousef Shemisa
>>
>>
>>----- Original Message -----
>>From: "Brad" <[hidden email]>
>>To: <[hidden email]>
>>Sent: Monday, April 03, 2006 17:17
>>Subject: Re: [OFBiz] Users - Receiving inventory w/o PO
>>
>>
>>Thanks for the suggestion Ian. The problem however is that an incoming
>>shipment will have an associated
>>party who is sending the products in. Simply using the inventory variance
>>would not be sufficient because
>>it would lose the party relationships. The sending party will still not see
>>that their incoming shipment
>>has arrived, and what (if anything) was rejected. Additionally the system
>>would lose any trail of what
>>happened to the items contained within the shipment (such as where they were
>>stored, who processed the
>>package, etc.)
>>
>>Consider the case where your company offers a grading / assay /
>>authentication service for certain products. A customer
>>wants to use that service. Somehow you must create an incoming shipment
>>associated to that customer. You cannot, however,
>>use a PO because you (the receiver) aren't actually purchasing the item(s).
>>When the shipment is received, inventory needs
>>to be updated to reflect that these items are located somewhere under your
>>control (forget for a moment about complexity involving
>>avoiding fulfilling someone else's order with this product that we didn't
>>purchase).
>>
>>It is almost as if a new ORDER TYPE is necessary instead of SALES & PURCHASE
>>ORDER such as a DEPOSIT ORDER or something that
>>would represent an order for incoming products that you aren't purchasing
>>and are not assets owned by your company. Then the
>>"Receive Inventory" tools would need to permit lookup of either a PURCHASE
>>or DEPOSIT order.
>>
>>Does anyone see what I'm getting at? Does this make sense? Is there any
>>out-of-the-box way to accommodate this?
>>
>>Thanks,
>>
>>Brad
>>
>>
>>>My mistake. It's in the 'Inventory Items' section. If you specify the
>>
>>item then you can adjust
>>
>>>it at the bottom in the 'Physical Inventory Variances' sectoin.
>>
>>
>>>>On Mon, April 3, 2006 23:35, Brad wrote:
>>>>/ Hi folks,
>>
>>/>>/
>>/>>/
>>/>>/ Suppose there is a need to record and track an incoming shipment that
>>is
>>/>>/ not associated with a Purchase Order? Perhaps an item that is a
>>promotional gift from a supplier
>>/>>/ or an item from a customer who is not ordinarily a supplier? Through
>>the facility manager you can
>>/>>/ create an incoming shipment, however I cannot figure out how to
>>actually receive it. Under
>>/>>/ "Receive Inventory" it requires a PO#. Is there an existing
>>/>>/ way to complete the incoming shipment and have inventory properly
>>adjusted? Creating a PO for the
>>/>>/ shipments where the price is FREE is not an option because it would
>>throw off COGS as well as
>>/>>/ confuse some customers when they look at their order histories. There
>>is a way to manually post a
>>/>>/ specific product under "Receive Inventory", however it does not refer
>>with the incoming shipment.
>>/>>/
>>/>>/ Any ideas?
>>/>//>/
>>/>>/ Brad/
>>
>>
>>_______________________________________________
>>Users mailing list
>>[hidden email]
>>http://lists.ofbiz.org/mailman/listinfo/users
>>
>>
>>
>>_______________________________________________
>>Users mailing list
>>[hidden email]
>>http://lists.ofbiz.org/mailman/listinfo/users
>
>
> _______________________________________________
> Users mailing list
> [hidden email]
> http://lists.ofbiz.org/mailman/listinfo/users
>

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BJ Freeman

Re: Users - Receiving inventory w/o PO

In reply to this post by David E. Jones

It would seem that having process(s) that "catches" transaction that
are orphaned, would be of general use thru out ofbiz. This is not meant
to catch bad coding, but processes in the real world that need
addressing, but don't have a clear automation path.

This is a good example, where something is received but the receiver has
no Idea where to apply it. So they store it in the facilities and note
where it is. A System process that checks for such entries, then notes
this in the workeffort.
This allows the appropriate user to manually implement the correct
transaction to have this accounted for.

David E. Jones sent the following on 4/5/06 4:51 PM:

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