I had a procedural question re: differences in PO receipts vs. subcontracted receipts.
We send material out for a subcontract process. When we get it back we PO receipt the supplier qty provided. Supplier qty = material + packaging. It should be material only. Packaging is typically 7% of total PO weight. For whatever reason, they won’t reduce the qty by the packaging weight.
We have been subcontract job receipting the PO receipt weight not realizing it wasn’t just the material weight, but material + packaging. Our inventory has been over-stated as a result.
What’s the best way to handle this? Should we just job receipt the material weight only based on our 7% packaging weight? Would this create a job variance? Does that matter?