About Commodity Receiving
On a commodity manifest, the user records both the quantity that was purchased and the quantity that was received into the inventory. The individual purchases that are entered for each vendor on the manifest are combined and received as one quantity. The commodity manifest functionality has been developed to manage these parallel purchase and receipt quantities.
Bins
When you create a commodity manifest, you enter the warehouse bin into which the commodity item will be received. This should not be a storage bin, but rather a bin that has been set up specifically for the purpose of processing commodity receipts. Depending on how the location that is entered on the commodity manifest has been set up, a receiving bin may be automatically assigned to the document.
You must also specify one or more bins on the Destination Bins FastTab. The bins you enter here are the bins in which you want the received commodity to be stored. For every bin you enter, you also record the quantity of the commodity that should be put away. The sum of the quantities that have been assigned to destination bins must equal the total amount of the commodity that is being received on the manifest.
When you post a commodity manifest, the quantities on the manifest lines are received individually into the defined receiving bin. The program then automatically adjusts these receipts out of the inventory and creates a positive adjustment for the sum of these quantities. This amount is then transferred from the receiving bin to the designated destination bins, according to the quantity specified for each bin.
The purchases that are entered into the receiving bin are all given an individual lot number. After these amounts are combined into a single quantity, the new entry is assigned a separate lot number. This allows the user to track each purchase separately from the combined receipt quantity, and provides full traceability for the item.
Quantity Adjustments
The quantity of a commodity that is received into the inventory is not always identical to the quantity that was initially purchased from vendors. This may be due to various effects. For example, if the commodity is a liquid, it may be that during transportation from the vendor location to a company facility, a portion of the item evaporates or is otherwise lost. For the purpose of processing commodity activities, it is necessary to record both quantities, as the receipt represents the amount of the commodity that is physically on hand and available for production, while the purchase quantity is used to determine vendor payments.
When you set up a commodity manifest, you record both the quantity that is received and the manifest quantity, that is, the quantity that is purchased. The received quantity is entered directly on the manifest header. Manifest quantities are entered on the document lines. For each commodity line you create for a vendor, you specify a manifest quantity. The sum of these values is presented on the header as the total manifest quantity. The difference between a commodity manifest's received and manifest quantities is displayed as an adjustment quantity.
Because the program initially receives the individual manifest quantities into a receiving bin, completely adjusts these quantities out of inventory, then creates a new positive entry for the total manifest quantity, it is able to perform any necessary quantity adjustments. While the single positive entry is still in the receiving bin, it is adjusted according to the adjustment quantity specified on the commodity manifest. Following this adjustment, the remaining amount of the commodity, which is now equal to the received quantity that was specified on the commodity manifest, is transferred to the listed destination bins. As a result, there is never any quantity of the commodity left in the receiving bin.