Inventory tracking by receipt

In some countries it is a legal obligation to register the original receipt of an item on various documents. The original receipt is the receipt with which an item is received in a country or other legal entity.

For example, if goods are imported and then exported without being used for production, import and receipt details are required on the export documents.

The Inventory Tracking by Receipt parameter in the Inventory Tracking Parameters (tcitu0100m100) session is used to enable an item to be traced back to its original receipt into a country or other legal entity.

Note: This parameter is unavailable for cost and service items.

If this parameter is implemented, the receipt line by which the inventory was originally stored in inventory, and, consequently, the receiving country or other legal entity acquired ownership, is registered on the inventory tracking unit.

Registering the initial receipt has these consequences:

  • A new inventory tracking receipt and inventory tracking unit is created for each receipt line.
  • For subsequent transfers of the receipt line without ownership change, the link to the initial receipt remains available.

On each inventory tracking unit, the link to an initial receipt or a subsequent receipt is indicated:

  • Initial Receipt

    The original receipt with which the item was received in the country or other legal entity.

  • Subsequent Receipt

    A follow-up receipt, with which the item - after the initial receipt, consumption, and new receipt - was received into an entity that is not a legal entity, such as a site.

The legal entity is determined by the inventory tracking ownership level; that is, if the ownership level is set to Country, then the country is the legal entity.

For example, if the ownership level is Country and the location level is Site, the initial receipt would be the receipt in the country.

If the item is then issued and received again in other sites within the country, those receipts at the other domestic sites (for which inventory tracking units are also created) would be the subsequent receipts.

The type of receipt, Initial Receipt or Subsequent Receipt, to which the inventory tracking unit is linked, is indicated on the inventory tracking unit. The initial inventory tracking unit and the preceding inventory tracking unit are also listed.

When an item with an initial receipt and one or more subsequent receipts is received in another legal entity, a link is made on the new inventory tracking unit to the inventory tracking unit of the initial receipt in the first legal entity.

Note: Implementing this parameter results in a considerably larger volume of inventory tracking units, which requires much more handling than without this parameter setting. This is because an inventory tracking unit is created for each inventory tracking receipt.

If this parameter is not implemented, multiple receipt lines can be consolidated on the inventory tracking receipt and inventory tracking unit, and the initial receipt is not preserved during subsequent transfers of the inventory.