Quality Assurance / Receiving material with inspection

Epicor ERP 10
1

Hello!

I am reviewing the QA process and I am trying to understand the process, but If I review the Training Material, we have information about different inspections for purchased or manufactured material.

Let me explain what I understood and please correct me if I am wrong. And please, let me know the steps I have to follow.

Purchase.

  1. We create a PO (we can check it for inspection)
  2. We receive the Material (must be checked for inspection).
  3. Then, do we going to Inspection Processing Entry and find the PO on PO Receipts?
    Then, we just have two options, Pass or Failed material.
    If we pass it, we just move it to a Warehouse/Bin and it is done.
    But if we Failed the material, a DMR is created.
  4. Then we go to DMR Processing and we can:
    a) Reject the material.
    b) New Debit Memo
    c) Accept to Stock
    d) Accept to Job.

I understand we have the next cases:

  1. If we received more/less than requested. We can process a Debit/Credit. What step is next? I just enter the invoice of the purchase and I apply a Debit Memo/Prepayment in AP?
  2. We decide the material is fine and we just Accept it. We just move it to Stock. END of the process.
  3. We identify the material is bad and we reject it. We have to create a Miscellaneous Shipment Entry. Does here finish the process? Then what?, the material is returned and the supplier send another material to replace the previous?

Thank you for your comments!

Regards,

Gerardo

2

Hi Gerardo,

It looks to me like you have your inspection processing right. We do it similarly.

For 1., we ask our receiver to enter the actual received quantity at time of entry as much as feasible. If the price is great for extraneous quantity or excess qty > 10%, receiver instructed to contact buyer before receiving in system to determine whether to receive all or just ordered quantity in system. Misc shipment should be used to return excess. No debit memo needed, pay for what was received, po release closes because received = ordered.
For short receipts, receiver enters receipt for quantity received. Since Qty recd < qty ordered, PO release remains open. Receiver contacts buyer (note, this can and should be handled via auto email, dashboard or report IMO, but it is what it is today :frowning: ) and buyer either manually closes PO release, or communicates with vendor to determine more being sent.

We also sometimes have receiving check “Inspection required” on line at time of receipt entry if there’s concern with the receipt, to flag need for further review.

For 3. We have the buyer add a new line to the original PO to purchase the rejected quantity again.

Nancy

1 Like
3

Thank you Nancy!