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[jira] Created: (OFBIZ-481) Over issuance on PO fails

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Nicolas Malin (Jira)

[jira] Created: (OFBIZ-481) Over issuance on PO fails

Over issuance on PO fails
-------------------------

Key: OFBIZ-481
URL: http://issues.apache.org/jira/browse/OFBIZ-481
Project: OFBiz (The Open for Business Project)
Issue Type: Bug
Components: accounting
Reporter: Iain Fogg
Attachments: InvoiceServices.patch

If you issue more items on a Purchase Order than was ordered (or remains to be billed), an execption is generated when trying to generate the invoice.

The patch attached does 2 things (a) it tests for over-issuance on a purchase order, and (b) it asserts that if we issued more items than we ordered, then it means we are in a over-supply situation with our supplier. It seems that the correct course should be to invoice for the actual amount of items received, and offline address the over-supply with the supplier. There are many possibilities at this point, but if OFBiz has recorded that we have the items in inventory and that we've been invoiced for them, then that seems like a good place to start from.

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Nicolas Malin (Jira)

[jira] Updated: (OFBIZ-481) Over issuance on PO fails

[ http://issues.apache.org/jira/browse/OFBIZ-481?page=all ]

Iain Fogg updated OFBIZ-481:
----------------------------

Attachment: InvoiceServices.patch

> Over issuance on PO fails
> -------------------------
>
> Key: OFBIZ-481
> URL: http://issues.apache.org/jira/browse/OFBIZ-481
> Project: OFBiz (The Open for Business Project)
> Issue Type: Bug
> Components: accounting
> Reporter: Iain Fogg
> Attachments: InvoiceServices.patch
>
>
> If you issue more items on a Purchase Order than was ordered (or remains to be billed), an execption is generated when trying to generate the invoice.
> The patch attached does 2 things (a) it tests for over-issuance on a purchase order, and (b) it asserts that if we issued more items than we ordered, then it means we are in a over-supply situation with our supplier. It seems that the correct course should be to invoice for the actual amount of items received, and offline address the over-supply with the supplier. There are many possibilities at this point, but if OFBiz has recorded that we have the items in inventory and that we've been invoiced for them, then that seems like a good place to start from.

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Nicolas Malin (Jira)

[jira] Commented: (OFBIZ-481) Over issuance on PO fails

In reply to this post by Nicolas Malin (Jira)

[ http://issues.apache.org/jira/browse/OFBIZ-481?page=comments#action_12451587 ]

Jacopo Cappellato commented on OFBIZ-481:
-----------------------------------------

One doubt I have is procedural: should we really allow for over-issuances (i.e. assign to an incoming shipment more items than the ones in the order)?
Or should be better handled when the shipment is received?
I'd propend for the latter solution, but I'm not so sure about this.

Nicolas Malin (Jira)

[jira] Commented: (OFBIZ-481) Over issuance on PO fails

In reply to this post by Nicolas Malin (Jira)

[ http://issues.apache.org/jira/browse/OFBIZ-481?page=comments#action_12451651 ]

Iain Fogg commented on OFBIZ-481:
---------------------------------

I'm not 100% sure accepting the over-issuance is the right thing either, however...

1) If the supplier over-issued AND invoiced you, then either you will accept the extra item(s), in which case it would make sense for the OFBiz Purchase Invoice to reconcile with the supplier invoice and for your inventory to be accurate, OR, you will want to contact the supplier to return the extras. In this case, you have extra inventory lying around unaccounted for in OFBiz while you are going through the return process with the supplier. It would seem to me that tracking the item(s) in inventory is desirable until you can execute the return (at which point inventory is decremented and you get a credit/refund from the supplier). [Note: unfortunately we don't have a supplier return implementation yet, but I'd like to start working on that soon]

2) If the supplier over-issues and does NOT invoice, then it is up to your business policy what to do. In any case, you would probably accept the invoiced number of items (since the OFBiz invoice will reconcile with the supplier invoice), and then make an inventory adjustment until you've worked out the situation with the supplier. For businesses that believe in acts of god, they might just make the inventory adjustment and move on :-)

Anyway, I think the general principle ought to be that if yuo've got inventory, you're better of recording the fact first and dealing with any complications after.

Nicolas Malin (Jira)

[jira] Commented: (OFBIZ-481) Over issuance on PO fails

In reply to this post by Nicolas Malin (Jira)

[ http://issues.apache.org/jira/browse/OFBIZ-481?page=comments#action_12451656 ]

David N. Welton commented on OFBIZ-481:
---------------------------------------

Just poking my nose in, so I might be saying something completely irrelevant, and recording it here for all to see...

One thing we encounter relatively often is that suppliers send us a newer version or slightly different version of a product, so we need to record the fact, and deal with 'errors' in each order. Sometimes this means returning the product, often it means changing the customer's order to reflect the fact that they are getting something slightly different, and so on. Just something to keep in mind....

Nicolas Malin (Jira)

[jira] Commented: (OFBIZ-481) Over issuance on PO fails

In reply to this post by Nicolas Malin (Jira)

[ http://issues.apache.org/jira/browse/OFBIZ-481?page=comments#action_12451664 ]

Chris Howe commented on OFBIZ-481:
----------------------------------

Just to toss my two bits in as well,

1) While it's great for OFBiz to template what the invoice should be based on the shipment, the invoice needs to be recorded in the manner that it is received from the supplier and then any notes or credit memos associated afterwards to made.

2) If someone is actively working on a return order implementation, I'd like to suggest that they use the order group instead of the return order group and simply create a different orderTypeId.

3) David W, while it may be irrelevant to this topic, it's very relevant to general business practices. I would suggest that a company treats what it buys entirely separately from it sells. That means that your product Id has absolutely nothing to do with your supplier's product Id. Even better would be that Product.productId have no real world meaning whatsoever instead using aliases for Product.productId that your customers would purchase from. This is a much larger strategy conversation that might do well in the mailing list and end up with some sort of best practices documentation if you're interested.

Nicolas Malin (Jira)

[jira] Commented: (OFBIZ-481) Over issuance on PO fails

In reply to this post by Nicolas Malin (Jira)

[ http://issues.apache.org/jira/browse/OFBIZ-481?page=comments#action_12451815 ]

Iain Fogg commented on OFBIZ-481:
---------------------------------

Chris's (1) hits the nail on the head. For me, that means that OFBiz should be very cautious about hard-coded business rules in its service implementations (generally this is the case). For PO reception, that means if I say there are 3 units of a product when the order only says 2, then this is because (presumably) I've got 3 items and they are invoiced by the supplier. If I got 3 items but the supplier invoice said 2, then I should issue 2 to the shipment and handle the 3rd after the event (see my point (2) above).

The downside of this implementation (allowing more items to be issued to a shipment than on the order) is that QuickReceive would break, except in the case where you have an order that you know has exactly the right number of items.

One thing I've noticed (and come up against) when receiving a large order is that I get (say) 2 units of item A for which I have ordered 2 units, I issue them to the shipment, receive the shipment, and continue processing (in this case, I am receiving the product in one box at a time). If the supplier invoice signaled that there was 3 in the order, I could handle that by putting the first 2 items aside and waiting for the 3rd to show up, however, it would be nice to be able to issue the first 2, receive them, and when the 3rd shows up, issue and receive that. Unfortunately, the item issue screen won't let you issue additional items once you reached the number on the order. Maybe an enhancement request...