we are currently looking into migrating from our current ERP to ERPnext. Looking into how it fit our needs, I have a question about how erpnext handles exceptions on purchase orders when supplier shipments arrive. We order frequently from a great number of suppliers, many of which fail to deliver full shipments on our order. Therefore it is imperative to have good control of our suppliers’ back orders. So far I’ve found stock receivals adjustments have options for received quantity and rejected quantity, which seems to leave what is left as “items to be received”. However there might be various reasons for shortages in our shipments. Sometimes the items are recorded as back order (with an expected delivery date), sometimes they are out of production and will not be delivered again. I couldn’t find any effective means of handling this in the purchase receipt.
Does anyone have any idea on how this is handled most effectively?
What do you mean by “back order”
You Cancel and Amend your Purchase Order or “Stop” it.
Back order is a common way to handle failed deliveries. It works like this:
I send a PO to a supplier. Supplier sends what they have in stock, and in case they have shortages on any of the items listed in the PO, it is noted in their system and sent to us once they have said items restocked. This needs to be matched against our system. It seems that this is partially covered in erpnext. Let me give you a use case to understand what we need:
we send a PO with something like:
(and their respective quantities, not important in this case).
we receive items with an invoice and suppliers note:
item A - ok
item B - could not deliver, will be sent once in stock
item C - out of production, will not be supplied.
Now, item B is sent later with a separate invoice, but in order to have a good stock management, we need to know we have already ordered it and that it is eventually on its way. So that has to be available in the system. Item C needs to have updated info, i.e. we need to set it as no longer available so that we do not try to order it again.
From your brief reply, do I understand correctly that by stopping an order, what is left of products not received, will no longer be listed as on its way? And that it would cover the “out of production” case? In that case, how would that work with PO’s that have both back orders and out of production items?
@Mikkel The ideal case would be to “Stop” individual line items. But that would be a major enhancement. I think you can leave a comment and then when the pending quantity is released, stop the order. But that would be manual.
You can also add a custom field to track that.