Bill on Receipt products

You can replenish stock for customers, and then bill them immediately upon receipt of the products. These products, called Bill on Receipt (BOR) products, are identified in Product Warehouse Product Setup-Storeroom. They are not usually stocked as distributor-owned inventory. When they are received on a purchase order or warehouse transfer, they are automatically sold to your customer.

A Bill on Receipt sales order is created automatically when a BOR product is processed through these functions:

  • Purchase Receipt of Inventory Entry
  • Transfer Receipt of Inventory Entry
  • Recovery Billing

If a BOR product is transferred to a Storeroom warehouse, then the warehouse transfer is automatically shipped and received. Transfer Receipt of Inventory Entry is run, which creates the sales order.

When a purchase order or warehouse transfer with BOR products is received, the tie between the original documents and the resulting sales order is shown these functions:

  • Purchase Order Inquiry or Transfer Inquiry
  • Sales Order Inquiry

The documents are tied at both the header level and line level.

Note: The sales order that is generated after receiving a purchase order with BOR products is created for the quantity that was received. The Round By field in Product Setup-Pricing, which rounds the quantity to the nearest whole quantity you want to sell, is not used.

The selling price at which the customers are billed for BOR products is calculated using one of these values:

  • Product price

    If the cost to maintain your customers' BOR inventory is included in the price of each product, then product price is used as the selling price. Standard Distribution SX.e pricing logic is used to determine the price of the BOR products on sales orders, based on PD Pricing Setup records. Product price is the default amount for selling price.

  • Product cost

    If customers are charged a flat fee to maintain their BOR inventory, then the selling price can be set to the cost at which the product was received on purchase orders or warehouse transfers. To use product cost as the selling price, the Bill on Receipt Priced at Line Cost option in Product Warehouse Description Setup-Storeroom must be selected. PD Pricing Setup records for BOR products are not required because standard pricing logic does not occur. Customers must be manually billed for the flat fee.

During receiving, quantities are moved from the Received balance to the On Hand balance, unless a product is flagged as Receive As Unavailable in Product Warehouse Product Setup-Storeroom. The Action to take on Completion of Receiving setting in SA Administrator Options-Documents-Sales Orders-Back Orders is overridden to enable updating the On Hand balance. If Bill on Receipt or Both is selected in the Auto Invoice Shipped Orders field in Product Warehouse Description Setup-Storeroom, then the BOR order is invoiced immediately. Otherwise, it is invoiced during the next invoicing run.

If No is selected in the Auto Invoice Shipped Orders field, then manually run these reports to move the BOR product from distributor Received to customer On Hand:

  • Sales Entry Processing Invoice Processing Report
  • Sales Entry Processing Back Order Fill Report

If a BOR product is back-ordered, then the inventory type on the order is typically converted from customer-owned to distributor-owned. When BOR products are received in the Storeroom warehouse, they are received as distributor-owned. Back orders are filled, the remaining stock is converted to customer-owned, and then the customer is automatically invoiced for the remaining amount. The back-ordered BOR products are invoiced as each order is filled.

To invoice the customer for the full receipt and track back-ordered BOR products against that single receipt, you can determine how BOR products are billed when they are received.

If Customer is selected in the Bill on Receipt - Demand Billing field in Product Warehouse Description Setup-Storeroom, then the inventory type on back-ordered BOR lines remains customer-owned. Because BOR products are received as distributor-owned, back orders with customer-owned products are not filled during the receiving process. If Bill on Receipt or Both is selected in the Auto Invoice Shipped Orders field, then these events occur:

  1. The Sales Entry Processing Invoice Processing Report is automatically run after the receiving process is complete.
  2. The received BOR lines are converted to customer-owned.
  3. The Sales Entry Processing Back Order Fill Report is run to fill the customer-owned, back-ordered line items.

If the Storeroom warehouse is not set to auto invoice shipped BOR orders, then run the Sales Entry Processing Back Order Fill Report to fill customer-owned back-ordered lines.

Note: If these conditions are met, then the Sales Entry Processing Back Order Fill Report is only run once after the Sales Entry Processing Invoice Processing Report, not as part of the receiving process:
  • Customer is selected in the Bill on Receipt - Demand Billing field
  • All products that are received on a purchase order or warehouse transfer are BOR products

If Distributor is selected in the Bill on Receipt - Demand Billing field, then the BOR products are received as distributor-owned, and any back orders are filled before invoicing occurs. The customer is invoiced for the remaining stock that did not get used during back order fill. When a BOR sales order that is created during receiving is invoice processed, the remaining stock is converted to customer-owned inventory. If distributor-owned back orders are found during back order fill, then the invoice, in this case, would not match up to the full amount received. The back-ordered BOR products are updated with the actual price and cost.