Material Receipts Business Rules

The following business rules apply to Material Receipts:

• Materials can be received from a vendor or from a purchase order.

• Materials can only be received from a purchase order if the status is ISSUE or CMPLT and the Allow Receipt From PO option is enabled.
• Receipts from a purchase order can only be edited or deleted if the status of the purchase order is ISSUE or CMPLT.

• Materials can be received from a vendor-on-the-fly.

• Materials can be directly issued when they are received (see Business Rules for Direct Issues).

• Receipts can be created for non-inventory items, but they must be directly issued.

• When receiving an item into inventory, the average cost is updated (see Business Rules for Weighted Average Cost).

• When creating a direct issue, the average cost is not updated.

• When creating a direct issue, the unit cost of the material issue is the unit cost of the material receipt.