ENTERPRISE RESOURCE PLANNING ASSIGNMENT- II

Report on:

USE OF INTEGRATED ERP SYSTEM IN GOODS RECEIPT NOTE PROCESS

Prepared By: Shrutika More. Sneha Nagda. Yogesh Pahune. Pooja Parikh. Tanvi Parkar. Vaishali Pawar. Manali Pradhan. (PM-10-26) (PM-10-27) (PM-10-28) (PM-10-29) (PM-10-30) (PM-10-31) (PM-10-32)

Poonam Chaudhari. (PM-10-33)

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Index:1. Introduction to ERP 2. ERP Modules 3. Purchase Module 4. Goods Receipt Note 5. Goods Receipt Note Entry 6. Goods Receipt Process for Inbound Deliveries 7. Steps For Inspection In Goods Receipt Note 8. The Benefits of Goods Receipt Process

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Acknowledgement

We would like to take this opportunity to thank Prof. Prakash Jagdale for giving us the chance to work on this project. We had a very good learning experience working on this project.

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1. Introduction to Enterprise Resource Planning:Enterprise Resource Planning, or ERP, is a system that is used to combine all of the information or operations of a company into a single unit. The standard ERP system will utilize both computer hardware and software in order to achieve this. Perhaps one of the most important parts of the ERP system is the central database. This database will be used to store information from various modules. The goal of ERP is to unify the various functions of an institution. However, the use of Enterprise Resource Planning is not simply limited to corporations. It is commonly used by non-profit organizations, government agencies, and other institutions. In order for system to be recognized as an ERP, it must meet a certain requirement. The software must be capable of giving functionality to one unit that would commonly have to use multiple systems. ERP can be much more complex than this. The reason why it is so powerful is because it reduced the need to have an outside interface available for two separate systems. In addition to this, the cost of maintenance is lower, and a standard is created. Another powerful aspect of ERP is that the reporting functions of the system are greatly improved. There are a number of organizations that could greatly benefit from using ERP applications. Some of these organizations are supply chains, financial companies, and human resources. The most important aspect of ERP is integration. The information or data from various parts of an organization must be compressed into a single entity. The best way to accomplish this is to have the ERP connected to one database. In most cases, a number of software modules will be used in conjunction with this. Each module will provide various forms of data from different4

departments within the organization. It is possible for an organization to only use certain portions of an ERP unit. They can create an interface for systems that are stand-alone. It is quite rare for a company to use a total ERP system. Most of the institutions that use ERP are very large, and they have specific needs that standard systems cannot meet. To solve these problems, the company will generally customize their systems heavily or use modules from various vendors. In the most ideal scenario, a manufacturing firm would be using the same vendor for all of their systems. In a situation like this, all of the data would be contained within one database. Some of the data would be workflow management, quality control, material costs, and the manufacturing process. Depending on the industry that a company is involved in, the information within the database may vary greatly. Because it emerged from the manufacturing industry, it is connected to this industry in a number of ways. When it comes to manufacturing, ERP systems are responsible for providing distribution, logistics, inventory, and shipping. In addition to this, the system can be responsible for controlling a number different factors, and some of these are marketing, sales, or billing. What sets ERP apart from Back Office Management System is that it deals with the company as a whole, and it combines a number of different functions. In addition to the manufacturing functions, it is also used for things such as strategic management or human resources. When properly structuring and processing information has become so important, integration of an organization's data can lead to a number of useful applications.

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2. ERP Modules:ERP software is made up of many software modules. Each ERP software module mimics a major functional area of an organization. Common ERP modules include modules for product planning, parts and material purchasing, inventory control, product distribution, order tracking, finance, accounting, marketing, and HR. Organizations often selectively implement the ERP modules that are both economically and technically feasible. ERP Production Planning Module In the process of evolution of manufacturing requirements planning (MRP) II into ERP, while vendors have developed more robust software for production planning, consulting firms have accumulated vast knowledge of implementing production planning module. Production planning optimizes the utilization of manufacturing capacity, parts, components and material resources using historical production data and sales forecasting ERP Purchasing Module Purchase module streamline procurement of required raw materials. It automates the processes of identifying potential suppliers, negotiating price, awarding purchase order to the supplier, and billing processes. Purchase module is tightly integrated with the inventory control and production planning modules. Purchasing module is often integrated with supply chain management software. ERP Inventory Control Module Inventory module facilitates processes of maintaining the appropriate level of stock in a warehouse. The activities of inventory control involves in identifying inventory requirements, setting targets, providing replenishment6

techniques and options, monitoring item usages, reconciling the inventory balances, and reporting inventory status. Integration of inventory control module with sales, purchase, finance modules allows ERP systems to generate vigilant executive level reports. ERP Sales Module Revenues from sales are live blood for commercial organizations. Sales module implements functions of order placement, order scheduling, shipping and invoicing. Sales module is closely integrated with organizations' ecommerce websites. Many ERP vendors offer online storefront as part of the sales module. ERP Market in Module ERP marketing module supports lead generation, direct mailing campaign and more. ERP Financial Module Both for-profit organizations and non-profit organizations benefit from the implementation of ERP financial module. The financial module is the core of many ERP software systems. It can gather financial data from various functional departments, and generates valuable financial reports such balance sheet, general ledger, trail balance, and quarterly financial statements. ERP HR Module HR (Human Resources) is another widely implemented ERP module. HR module streamlines the management of human resources and human capitals. HR modules routinely maintain a complete employee database including contact information, salary details, attendance, performance evaluation and promotion of all employees. Advanced HR module is integrated with7

knowledge management systems to optimally utilize the expertise of all employees.

3. ERP Purchase Module:Companies which purchase material from different vendors in large and varying quantities require a good ERP purchase module. A ERP Purchase module streamlines the functioning of procurement and purchase of raw materials, awarding orders to suppliers and billing. The purchase module has an option to record all the details pertaining to a vendor and these details are the master data for vendors who supply goods to the company. The purchase department is entrusted with the task of purchasing materials required for manufacturing products in the organization. The purchase department is responsible for purchasing materials in the right quantities of the right quality at the right time. The vendors are also referred to as suppliers and managing these suppliers is possible with this module and so this module is also referred to as SCM8

module. Various factors such as stiff competition, changing technology, short product life cycles, demand that a company does not order material in excess. The SCM module is designed to meet all these challenges. Suppliers and the company can work in a tandem using the Purchase Module. The suppliers can optimize their resources while the company can optimize its resources while allowing the suppliers also to do the same. A supply chain consists of the raw material which is supply to the manufacturer, who in turn supplies these goods to the wholesaler who distributes these goods to the retailers. The Purchase/SCM module is designed to handle the entire chain of suppliers.

The purchase department initiates the purchase process by raising the purchase order. Purchase orders are created when there is shortage of materials for production of finished products. The vendor supplies goods based on the purchase order. All purchase orders are treated as pending purchase orders till the time material is received from the vendors. On receipt of goods, a Goods Receipt Note is raised. When the receipt note is raised, stock accounts are updated. After the receipt note is created, purchase invoice is created which is a reference for the finance department to make a payment. The stock updations are reflected in the stock ledger and the stock registers. General ledger account updations are reflected in the balance sheet, P / L statement and general ledger. A good ERP Purchasing module allows tracking of each purchase order right from the stage when it is created and receipt of materials in part or full, relating these orders to purchase invoices, and unfulfilled requirements if any. The Purchase or SCM module is integrated with the Material management and manufacturing modules of the ERP software.9

Order form Delivery Note Goods Receipt Note Invoice Credit Note Statement Remittance Advice Slip Cheque Receipt

BUYER

SELLER

4. Goods Receipt Note:Goods Receipt Note is a document used to record the inward entry of the any goods received at the premises of the organization. The document normally consists of the details of Quantity Received, Quantity Rejected and Quantity Accepted, Supplier Name & P.O. No. The practice of preparing GRNs is important as it promotes proper inventory control and restricts the unwanted, unauthorized entry of goods in the organization. The GRN preparation is a part of effective Inventory Control Management. Goods receipt noting is the process whereby we match what we have received with the Purchase Order. The Payments section in the Finance Department then looks at the GRN and matches this to the invoice. It is possible for us to create more than one GRN per order as this allows us to part pay orders as the goods / invoices arrive. It is important that we correctly input items received on a GRN because Payments can't match items that haven't been receipted.10

If the Purchase Order doesn't match the Invoice received then we need to change the order before we complete the GRN. If more than one invoice has been received for one purchase order we will need a GRN for each invoice. This is necessary as we can only link one invoice per GRN within the system. Goods Received Note check list:

Have all items on invoice been received? Does Invoice match items on Purchase Order (price / quantity)? Does every invoice have a separate GRN? Have you confirmed the GRN before sending it to Payments? Have you attached the correct invoice to the correct GRN?

Process descriptionThis process starts with an order to the supplier for goods required. The goods are then delivered to site along with a delivery docket. The goods should then be checked by the person receiving the delivery to ensure they match the delivery docket and then they are signed for. One original signed delivery docket is retained by the supplier and is now termed the proof of delivery (POD) and a copy of the signed delivery docket is retained by the contractor and is termed the goods received note (GRN). The GRN is then returned to the accounts department where it is matched with the order and the invoice sent by the supplier. Once these have been satisfactorily matched, which may require further conversations with the supplier, then payment to the supplier is made.

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BackgroundThis process involves several different parties; the person requesting that material is ordered, the person placing the order, the supplier, the delivery driver, the person signing for the delivery and the person matching order to GRN and the invoice. These parties are all at different locations and work for different departments/companies. The paperwork is also under the control of different parties at different stages. The order is created by the contractor and the delivery docket which once signed becomes the POD and the GRN is created by the supplier. Deliveries are made in order to make maximum use of the space on the delivery truck, this results in orders being split and not all arriving on the one lorry at the one time; not even on the same day in some cases. Also, on larger projects deliveries are made to multiple locations which increases the difficulties incurred as there are multiple people signing for the deliveries.

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Currently, for most contractors the process of matching order to GRN to invoice is purely a manual process and on a large project this can involve searching through reams of paperwork. Each project will have a number of different suppliers for different materials and equipment, this magnifies the number of people involved and hence the complexity of the process

Current issuesThe following issues have been raised for this process: Contractors sometimes change their order whilst on the phone, when what they want isnt in stock but a replacement is suitable, this can lead to disputes if the conversation isnt backed up by a revised order. Delivery drivers are keen to make the delivery quickly and often just want the delivery docket signed by anyone so that they can continue to carry out another delivery. Often the person who is signing for the delivery doesnt know what has been ordered and therefore cannot verify the correct goods have been delivered. Often the person signing for the delivery does not check the goods match the delivery docket Lost GRNs is a huge problem for both the contractor and the supplier. One supplier stated that out of 4.5 million tickets issued each year contractors asked them to replace 300,000 GRNs. A contractor stated that on a 45 million project 133,000 of invoices was being queried on any one day. Once goods arrive on site there is difficulty in making sure they go to the person who ordered them.

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Typical Goods receipt note

Purchase Order No: _______________________________________ Supplier: ________________________________________________ Delivery Note No: _________________________________________ Date Goods Received: _____________________________________ Cost Centre | Charging Details: | Account Code | | Job Code

Full Order Part Order Delivery Note Delivery Delivery Attached Comments Signed: _____________________ Dated: ______________________ Finance Office Use Date of GRN:______________________________________________ GRN Number: ____________________________________________ Signed: ___________________________________________________ Goods Received Note

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Action after receiving invoice before GRN

Invoice ArrivesYES

Are the prices the same as on the Purchase Order?

NO

Have all the goods on the Purchase Order been delivered and invoice shows this?YES Yes No

Yes NO

No

Are you expecting any of the items to YES never arrive?

Go to the lines of the Purchase Order. Change the values of the lines to match the invoice. Press Apply. The order will need to be re-confirmed.

NO

GRN all lines. Print GRN and send to Payments (or if an electronic invoice forward to Payments with details of the Order Number and GRN).

Yes No

Go to the lines of the Purchase order and change the status of the line that you don't expect to receive to terminated (top of lines page). Press Apply. This order will need to be reconfirmed

GRN only the items that are on the invoice. Print the GRN and send to Payments (or if an electronic invoice forward to Payments with details of the Order Number and GRN)

Repeat all steps when next invoice arrives.

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5. Goods Receipt Note EntryThis process is used to enter goods receipt notes into the system where either invoices are not received with goods OR you want people operating in the store to receive goods & services with a single workflow, with Accounts Payable office staff responsible for matching Goods Receipt Notes (GRNs) with invoices that will impact the Accounts Payable System. This process is located in the Purchase Order Transactions Menu. Normally notification of the receipt in the form of a delivery docket will accompany the goods or services, and this is used to check off the actual stock and services received (NB: services can be categorized as direct purchase materials for Job Costing purposes) The products being received must already be established in the system via the Product Maintenance process in the Inventory Maintenance Menu, however, the supplier's product number need not be known until actually entering in the receipt note. Likewise, any services must have corresponding service codes established in the Purchase Order System. The process will also match "orders" with a receipt for indent stock, though a mix of indent and non-indent stock can be received in one pass. Once the receipt notes have been posted, then half the cycle of receiving in those goods and services is complete. When the invoice for the received goods arrives, the Goods Receipt Note Matching" processes are used to confirm the costs associated with the stock. This completes the goods receipt cycle.

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Goods receipt note entry: This option is used to record the details of direct deliveries on a Goods Received Note. The system is set up to automatically to generate a Goods Received Note Number which enables our Payments Section to clear invoices for payment to Suppliers. Failure to receipt goods causes delays in the payment process and can ultimately lead to the suspension of deliveries of goods and services.

If a Requisition has been entered as Auto-Receipted at the Requisition Entry stage payment cannot be processed by generating a GRN Number. Authorised invoices signed by the budget holder are required for clearance

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PROCEDURE 1. Select the GRN Entry option from the Data Entry menu then enter the Purchase Order and the Advice Note number from the delivery docket and click OK 2. Tab to the Line field enter the line number in the line field and enter/confirm the advice note reference again 3. The Received quantity defaults to the quantity expected (the order quantity minus the quantities previously received, if any). Tab to accept the default or enter the quantity actually received. 4. If this is a partial receipt but you want to treat the PO Line as complete, check the Complete box. 5. Select the Add/Amend option to update the line 6. Repeat Steps 2 to 6 for each Line of the Purchase Order to be received.

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7. Click the Update button then enter/acknowledge the GRN Number and click OK in the Goods Received Number dialog box.

Detail Data : Order Number If you know the Order Number, enter it here. If you dont know the Order Number, you can leave this field blank and you will have to manually enter the details for each line individually. Supplier Enter the Supplier Code that was used when you placed this order.

Delivery Docket No Enter the Docket Number that your Supplier has assigned to this delivery. Our GRN Reference No You may enter a reference number you are assigning to this delivery, possibly from a delivery book, OR the field may be left blank Receipt Date Enter the date that the goods and/or services were received from your Supplier. This is the date that will be used to book items into stock and recognize an estimated liability, based on costs on the original purchase order. Reference Enter any special references or Notes associated with this delivery. It can be left blank if required.

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Total Stock Delivered Enter the total quantity of all the goods that was delivered this acts as a hash total to ensure all items on the GRN have been entered Picking Slip Enables you to produce a Picking Slip report related to the current GRN that you are entering. Can be left blank if no report is required.

Receipt Advice - Can be used to print receiving advices once the GRN details are entered. The receiving advice may be used to assist in the putting away of stock as it is received. Can be left blank if no report is required.

Product data: Order Number If you know the Order Number, enter it here. If you dont know the Order Number, you can leave this field blank and you will have to manually enter the details for each line individually.

Supplier Enter the Supplier Code that was used when you placed this order . Delivery Docket No Enter the Docket Number that your Supplier has assigned to this delivery. Our GRN Reference No You may enter a reference number you are assigning to this delivery, possibly from a delivery book, OR the field may be left blank20

Receipt Date Enter the date that the goods and/or services were received from your Supplier. This is the date that will be used to book items into stock and recognize an estimated liability, based on costs on the original purchase order. Reference Enter any special references or Notes associated with this delivery. It can be left blank if required. Total Stock Delivered Enter the total quantity of all the goods that was delivered this acts as a hash total to ensure all items on the GRN have been entered

Picking Slip Enables you to produce a Picking Slip report related to the current GRN that you are entering. Can be left blank if no report is required. Receipt Advice - Can be used to print receiving advices once the GRN details are entered. The receiving advice may be used to assist in the putting away of stock as it is received. Can be left blank if no report is required.

Service Data Service Code Enter the code for the Service you are receiving. If you entered a Purchase Order on the Detail Screen, Order Number field and Services were ordered on this Purchase Order, the Service

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details would display here, otherwise you will have to manually enter the Service Code here. Description Enter a description of the Goods or Services being received here.

Orders No - If you entered a Purchase Order on the Detail Screen, Order Number field, that Order Number will default here. If there was no Order Number entered on the Detail Screen, this field will be blank. Job No If the Service being received here is to be costed to a Job, enter the Job Number, and otherwise leaves this field blank. Activity If the Service being received here is costed to a Job, the Activity on the Job against which this service will be cost is entered here (assuming you are recording activities). If it does not relate to a Job, leave this field blank. Entity Enter Entity to which this service is to be costed (defaults to entity associated with any entered Job, or current entity OS Qty will display a figure if the Qty Ordered is different to the Qty Received. OK Check for Yes if the line is fully received. Leave unchecked if the line is not fully received.

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6. Goods Receipt Process for Inbound DeliveriesPurpose The goods receipt process for inbound deliveries is an essential part of the supply chain. This process includes the steps after creation of the purchase order: notification, the inbound delivery, subsequent put away of goods, and the goods receipt posting of the ordered goods. The significant advantage of depicting the goods receipt process through the inbound delivery function is that you can execute many processes in advance, even before the actual goods receipt posting takes place. You have all the necessary information beforehand because the supplier notifies you of the inbound delivery ahead of time. The inbound delivery describes exactly which materials or pallets can be received on what date and at what time. The following functions are available with the goods receipt process for inbound deliveries: Transfer order for inbound delivery Like the outbound delivery, the inbound delivery is a request for putaway that is sent to the warehouse. You can create a transfer order for putaway from an inbound delivery. Batch information The batch split that is already possible for outbound deliveries is also available for inbound deliveries, since batches are often first identified in the inbound delivery Inventory management of packaging materials Goods receipt for inbound deliveries Define order confirmation for inbound delivery23

You can use this key to configure your settings such that planned inbound deliveries are automatically created through a collective processing run. Inbound delivery monitor Determination of goods receiving point Incompletion log Change documents

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Process flow The inbound delivery process starts when the goods are staged at the vendors shipping point, and it ends when the ship-to party makes an acquisition posting for the goods.

1. Create a purchase order or a scheduling agreement. 2. The system can determine a goods receiving point. 3. The system creates an inbound delivery automatically if you receive a shipping notification via Electronic Data Interchange (EDI).You can also create an inbound delivery manually if you do not use EDI to communicate with your supplier. 4. Repack the goods, if necessary. 5. Put the materials away by creating a transfer order in the warehouse. 6. Post the goods receipt.

The Goods Receipt ProcessReference activity, e.g. purch.ord.

Goods receiving point

Determining goods receiving point

Monitoring goods receipt planning Creating inb.delivery manually or by EDI

Warehouse

Repacking

putaway

goods receip

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An inbound delivery can be created as follows:

With reference to a purchase order

With collective processing for several purchase orders

With reference to a stock transport order

With reference to a customer return

Depending on your requirements, you can create inbound deliveries automatically using work lists, or manually. Overviews allow you to monitor the inbound deliveries that were created and activities relating to those deliveries that are due to be carried out.

The system carries out the following activities when an inbound delivery is created:

Checks the order and materials to make sure an inbound delivery is possible

Determines the delivery quantity of an item

Calculates the weight and volume of the delivery

Calculates work expenditure

Assigns a storage location for put away26

Updates order processing

You can subsequently make changes in a delivery in order to report the quantity that was put away or if the delivery situation changes in any way. In addition, you can use the display function to access inbound-delivery information in a delivery

a) Receiving Goods/Services At Central Stores The green copy of Purchase Order and the yellow copy of the Purchase Order Requisition will be received from Finance Office. The Purchase Order Number, Supplier, Room Number, Originator Name and Date Processed will be completed on Stores Log Sheet. These log sheets will be filed, in purchase order number sequence. The Purchase Order Requisition and the Purchase Order will be filed in outstanding Purchase Order file in purchase order number sequence. When goods are received at the goods inward area, they will be signed for, and received into the central stores secure area. A check will be made to agree a Purchase Order which corresponds to the goods received. The Purchase Order Number should be quoted on the delivery note. Where the supplier has not quoted the Purchase Order Number, as instructed on the Purchase Order, the Head Store man will notify the Assistant Finance Manager who will issue a standard letter informing the supplier that the Purchase Order Number must be quoted on all correspondence and that failure to do so will result in delayed payment.

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b) Goods Received - Corresponding Purchase Order Located Where goods are received, and a corresponding Purchase Order is located, then the delivery note received with the goods will be checked against the Purchase Order for completeness. Where there is discrepancy between goods shown on goods received note and goods ordered (shown on purchase order), the goods which are outstanding will be marked on the purchase order. These incomplete received purchase orders will be kept in the outstanding file. The originator will notify stores personnel of any shortage and any to follow advice which the supplier has identified. It will still remain the responsibility of the originator to check that goods ordered were actually received. Where goods are obviously damaged then arrangements will be made to return the goods Where goods were received complete as per the Purchase Order requirements, then the Purchase Order requisition, the Purchase Order and a photocopy of the delivery note will be filed in the Complete File within Central Stores. The order complete and date received columns will be completed on the log. Goods will now be passed for delivery to originating department

c) Goods Received - No Corresponding Purchase Order Located Where goods are received without a Purchase Order being raised, stores personnel will examine the Delivery Note to ascertain to whom the goods are to be delivered.

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Where the Delivery Note indicates the originator or room location, the goods will be passed for delivery, see section 4. A copy of the Delivery Note will be filed in the problem file, awaiting a Purchase Order. Where the delivery address cannot be found from the delivery note, Stores Personnel will use a knowledge of previous orders or type of goods in a bid to try and trace the originator. Where Stores Personnel consider that they have traced the originator, a telephone call will be made to the originator to confirm the goods were ordered. Where the originator is found, the goods will be delivered. Where the originator cannot be traced, goods will be held in the Central Stores secure area until either the originator seeks the goods or an invoice showing originator is received, the goods will then be delivered.

d) Delivery Of Goods Details of all deliveries will be completed on Delivery Service forms, by Stores Personnel. Goods will be delivered to originator, a signature from originator or recipient will be required, no goods will be delivered without this signature.

e) Return Of Goods To Supplier To initiate a return, the originator must inform the supplier of the nature of the uplifted. Where the supplier will uplift the goods, the date and approximate time of uplift should be obtained.29

problem and request that the goods to be returned should be

Where the supplier will not uplift the goods, Stores Personnel will arrange for return transport which will be charged to the originating budget. A Goods Returned Form should be completed in all instances. Where the goods are to be uplifted by supplier, the date and approximate time of uplift should be included on the form. The goods returned form must be completed, by the originator, and submitted to the Stores pigeonhole not less than 2 working days prior to uplift. Goods must be securely and safely packaged, by the originating department. Central Stores do not keep a copy of boxes or packaging material.

7. Inspection In Goods Receipt NoteAll material and workmanship is subject to inspection and test notwithstanding any inspection during manufacture or witness test at the plant. Final inspection and acceptance of any articles ordered shall be after receipt. The company reserves the right to reject any articles which do not comply with the specifications of its Purchase Orders or which contain defective materials or workmanship. Rejected articles shall be removed at vendors expense, including transportation both ways promptly after notification of rejection and vendor shall bear risk or rejected articles. At Vendor Facility The company reserves the right to inspect all items on this order at the vendor's facility.30

Vendor Inspection Process Review Vendor's inspection system and manufacturing process are subject to review/approval, verification and analysis by authorized representatives. Company Source Inspection All items covered by this purchase order are subject to source inspection and surveillance during fabrication by the company quality representative. Notify the Company QA department 48 hours in advance for source inspection. Evidence of source inspection shall accompany each shipmentRequest Clerk Response Verify Purchase order quantity Invoice details

Request Purchase Dept. Response Verify good receipt note

Purchase order details

Invoice details

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Process flow for receipt of goods from suppliersObjective

To document receipt of goods from suppliers. Scope To be followed for each sales invoice received from the supplier.

Arrival of lorry load

NO Obtain advice of HO Documents in order?

YES

Prepare draft MIS and Print checklist

Unload and record quantity, Breakages, etc. Correct draft MIS

Print MIS, EVC. Dispatch MIS and file32

Process flow for acknowledging Demand Draft/Bank creditReceipt of DD/Pay Order/Credit advice

Return to the buyer

No

Documents in order? Yes Compute TCS to be deducted

Make entries in the Accounting Voucher Creation screen

Print receipt and give to buyer. File depot copy

Hand over DDs received to the bank

Objective To acknowledge and account for Demand Drafts/Pay Orders received from and/or the direct credit made to the bank by a buyer.

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Scope To be followed for the Demand Drafts/Pay Orders received from and/or the amounts credited by a buyer on a particular day.

8. Benefits of Goods Receipt ProcessAlthough it may sound complicated the process is actually very easy and straightforward, usually using a software application such as SAP, which stands for Systems, Applications and Products with regard to Data Processing. This application allows the whole process to be undertaken in a matter of minutes, rather than having to manually sort out whether or not the goods have actually been received and whether or not they were in an undamaged state. Using an electronic system to map the receipt of goods is therefore a much speedier process than it used to be. This efficiency is not just good for the customer, who can track when and where goods were received, but it can reduce the length of time that suppliers have to wait to be paid, since the electronic system enables payment to be authorized as soon as the goods arrive. It can also save companies money because there is a clear record of the goods received and their condition, so there is no longer a risk of paying for goods that were faulty or damaged. The issuing of a goods receipt notice can also help received goods from going astray because someone has to issue the receipt and therefore takes responsibility for having received the goods. The final benefit of this process is that it enables suppliers to be paid for partial orders, in the sense that the Purchase Order can be split into parts so34

they can have payment as each goods receipt is issued, which can be vital for companies in terms of ensuring that their cash flow is continuous. So overall a Goods Receipt Process is an excellent and very efficient way of ensuring that goods are tracked and that payments are made only for goods that were received in a satisfactory condition, in a way that is cost efficient and beneficial not just to the customer who is receiving the goods, but also to the supplier.

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References: 1. http://www.exforsys.com/tutorials/erp/enterprise-resource-planningintroduction.html (Intro to ERP) 2. http://www.sysoptima.com/erp/erp_modules.php (ERP Modules) 3.ERP module Image source: http://www.friendscomputers.com.pk/images/erp.jpg 4. Purchase Order: http://www.vkinfotek.com/erp/erp-purchase-scm.html

5. Goods Receipt Note: http://www.eresourceerp.com/EresourceERPWeb/ui/ProductDetails.aspx?pid =20&productname=Goods%20Receipt%20Note.htm&categoryid=9 http://webcache.googleusercontent.com/search?q=cache:http://staffcentral.bri ghton.ac.uk/finance/efin/trainingsite/trainpage4.shtml

6. GRN Checklist: http://webcache.googleusercontent.com/search?q=cache:http://staffcentral.bri ghton.ac.uk/finance/efin/trainingsite/trainpage4.shtml

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thank you!!

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