Material Receipt ERP Entry

• Description: Material receipt ERP entry is the process of logging all received materials into the Enterprise Resource Planning (ERP) system upon arrival at the facility. This step ensures that materials are accurately tracked, and inventory levels are updated in real-time. The ERP system provides a centralized repository for managing material data, streamlining inventory control, and ensuring that received materials are properly accounted for in the production process.

• Process Detail:

  • Verify Purchase Order (PO) Details: Upon receiving the shipment, the first step in ERP entry is to verify the Purchase Order (PO) details against the materials being delivered. The PO contains information such as part numbers, quantities, and specifications of the ordered materials. The ERP system allows the user to pull up the corresponding PO to ensure that the materials being received match what was ordered.

  • Scan and Record Barcode/QR Code: Many companies use barcodes or QR codes on incoming materials for easy tracking and identification. Upon receipt of the materials, the warehouse or receiving team should scan the barcode or QR code using a barcode scanner or mobile device. The scanner automatically pulls up the material details from the ERP system, allowing for a quick and accurate material entry.

  • Enter Receipt Details into ERP: After confirming the materials match the PO, the details should be entered into the ERP system. This includes:

    • Part Numbers: Ensure the correct part numbers for the materials are entered. If there is any discrepancy, it should be flagged for further investigation.

    • Quantity Received: Enter the quantity of materials received for each part number. This quantity should match the packing list and PO. Any discrepancies should be recorded for further action.

    • Supplier Information: Log the supplier information, including the supplier name, contact details, and shipping information. This is useful for tracking any discrepancies or quality issues and for maintaining supplier performance records.

    • Batch/Lot Numbers: If applicable, enter the batch or lot numbers for traceability. For materials that require lot control (e.g., chemicals or sensitive components), it is essential to track the specific batch or lot number to maintain quality and compliance records.

    • Inspection Status: Record the inspection status (whether materials are accepted or require further investigation). This status update ensures that only materials that pass the inspection process are entered into the inventory for use in production.

  • Quality Certifications and Documentation: If materials require certification (e.g., RoHS compliance, CE certification, or material safety data sheets (MSDS)), enter details about these documents into the ERP system. The system can be configured to link certification numbers and expiration dates to specific materials.

  • Update Inventory Levels: Once the material details are entered into the ERP system, the inventory levels should be updated to reflect the receipt. The system automatically adjusts stock levels based on the quantity received, helping to maintain accurate stock data for procurement and production planning.

  • Generate Goods Receipt Note (GRN): The ERP system generates a Goods Receipt Note (GRN) or Material Receipt Note (MRN) once the material receipt is logged. This document serves as a formal record of materials received and confirms that the materials have been inspected and entered into the system. The GRN is typically sent to accounts for invoicing and payment processing.

  • Track Discrepancies or Issues: If any discrepancies, defects, or non-conformances are found during the material receipt process (such as over-quantity, under-quantity, or damaged items), they should be flagged in the ERP system. A discrepancy report is created, which helps initiate corrective actions, such as returning the materials to the supplier or initiating a claim.