North Carolina Department of Public Instruction Transportation Services December 2014 Craig Warren Transportation Consultant Inventory Training Module 4 Inventory Receipt / Payment Process

Processing Packing Slips and Invoices against order creation form TD-21Paper Form Extend material to your Plant Creation of Bin / Shelf Location ME-21 / MIGO BSIP receipt transaction Parts Labeling Indicate Core Information on Part labeling Tag /Shelf / BSIP Chart of accounts for payment 421,422,423 etc. Inventory Training Module 4 Inventory Receipt / Payment Process

Process Packing Slip Confirm packing slip and order received match before entry into BSIP Shortages on received goods cause many of the shortages if not caught at time of receipt. Don’t assume all parts are there count and confirm!!!!

Invoice Confirm Invoice matches inventory received before BSIP entry. Confirm quantity billed match received goods and the price appears to be correct. Question any and all concerns

TD 21 Fill in quantity and pricing including sales tax on TD-21 to assist in receipt accuracy before starting BSIP entry process. Divide freight charges across the order and attempt to place major freight charges on special order or higher priced items to prevent exaggerated prices for low cost items. Example ofTD21 form follows

TD-21 Form Inventory Receipt Report - TD-21 Vendor:Date: Bus Auto Parts CompanyInvoice Number:_________________________ Material Document Number:________________________Purchase Order Number: _________________________ QuantityDOT Number Manufacturer NumberDescriptionUnit PriceTotal Storage / Bin Location < Total Qty. Total >

Extend “NEW” Materials to Plant New parts require this process before parts are allowed to be received into BSIP

Bin / Shelf Location Creation Setup of Bin and shelf location can be carried out at anytime after new parts are extended to your plant. It is recommended that all existing parts in BSIP have Bin and shelf locations established if not already done to assist in many phases of inventory control and management.

ME-21 / MIGO BSIP receipt transaction The process for receiving inventory should be accomplished using the ME21 / MIGO BSIP Transaction The process is explained and screen shots will follow that show actual view of screens involved in the process. These instructions are all located on the NCBUSSAFETY.ORG website under Business Systems Information Portal Transaction procedures and by contacting Kevin Harrison at Transportation Services for assistance

December, 2003 Revised 8/17/2005 DPI Vehicle Fleet Management 10 Use this procedure to enter materials (except fuel) into inventory. A purchase order must be created. 1.From the SAP R/3 System Easy Access screen or from your favorites, enter or select transaction code ME21N. 2.Click or press Enter. The Create Purchase Order screen displays. - Defaults set are displayed. See Setting up ME21N. 3.Enter 23 in Vendor field (in space to the right of the word Vendor). 4.For each item, enter the following: - PO Quantity - Unit of Measure (Oun) - Material (DOT material number) - Net Price (this is Price per Unit of the item) 5.Click on Check icon. - System may display messages in a dialog box about delivery dates and info records- these can be ignored..*Any other error messages must be resolved*. Click on the green check. 6.Click on. 7.Record Purchase Order number on invoice. 8.Receive Material Into Inventory: Enter /NMIGO from the Create Purchase Order screen. - Alternatively, you can click on to return to the SAP Easy Access Screen and enter or select transaction code MIGO. 9.In the first Matchcode field, select Goods receipt. 10.In the second Matchcode field, select Purchase order. 11.The Movement type should change to 101 GR goods receipt. 12.Enter Purchase Order in field with blinking cursor. Click. - System pulls in items from Purchase Order. 13.Put a check in the OK box next to each item you want to receive. 14.Click on. System puts the Material Document number in the Status Bar. Note this on the invoice. * See ME22N on how to correct Purchase Order*. Entering Inventory (Purchase Order/Goods Receipt) ME21N MIGO Back Cancel Help Exit Enter Save Execute Basic Commands Movement Types 101Receipt of materials into inventory 102Reversal of receipt of materials into inventory 261Issue materials to work order 262Reversal of materials issued to work order 311Transfer material within storage locations 971Receipt of bulk fuel shipment

Parts Labeling Labeling of parts at time of receipt with help correct DOT number issues. Do Not write on the packaging as this will normally result in not being able to return if not used. Tag parts with paper removable tags or stick on tags

Parts Labeling / Core Tracking Indicate on the parts tag if the part carries a core charge. This type of labeling will assist in tracking the core and remind you to follow the core and request receipt of core credit. Failure to follow this step can result in monies not accounted for at the end of the physical year.

Chart of accounts Determine at the time of invoice processing the correct chart of accounts for the payment to be paid from. Accounts 421,422,423 etc.. Many errors are made when items such as fuel, oils and grease or tires are paid from parts accounts and does not reflect the true account of funds during the reporting phase. Contact Transportation Services if this process is not clear.

Summary This module on Inventory receipt and payment Processes should be used as a guide to correct or possibly eliminate issues you are currently having in Inventory management. Many times bad receipt and payment practices drive up inventory costs due to incorrect quantity receipts and errors in prices due to not cross checking the invoices against BSIP once order is completed. The use of forms created to assist in the receipt process may also eliminate errors if utilized. Transportation Services hopes this module will be another reference tool you will use to insure accuracy in the daily operation of your facility.

North Carolina Department of Public Instruction Transportation Services December 2014 Craig Warren Transportation Consultant Inventory Training Module 4 Inventory Receipt / Payment Process