GoodBooks ERP Material Management module provides comprehensive ways to handle vendor material rejections.
This section briefs about the options available to how to record this type of transactions.

Material Receipts
Material Rework and Rejections
Variance and Dr/Cr Note

Material Receipts

Receipt of material from vendors is a key aspect in material management. Materials can be received
against valid Purchase Orders.  Depending on the nature of business and products various options are required.
GoodBooks provides several different process flow and facilities to cater to these requirements.  These
option can be configured as part of Business process setting in Administration module.

The following are the core Business Processes associated with material receipts

.  Material Inward Note (MIN)
.  Material Inspection  (Inspection)
.  Material Inward and Inspection (MIN & Inspection)
.  Miscellaneous Inward Note (Misc. MIN)

Please refer to specific documents on each of these processes for more details.

Material Rework and Rejections  

When materials supplied by vendor is inspected, the following can result

Accepted as it is
Material to be Re-worked
Material Rejected

Material Accepted as good quantity
– Material as per ordered terms
– Material as per required quality and specification
Material to be Re-worked
– Material not as per required quality and specification
– But the material can be corrected by additional work
Material Rejected
– Material not as per ordered terms
– Materail not as per required quality and specification
– Material can not be used

Also, this mismatch on quality etc may be found either during the material receipt process itself
(Inspection, MIN/Inspection)  or later  (Line rejection or rejection from store etc)

GoodBooks ERP provides all these options.  The system can be configured to get the required details using the
Business Transaction Setting by administrator.

During the transaction entry, you will be shown option to enter Good, Rework and Rejected Quantity separately,
where applicable.  If you do not find these fields where you expect to find, please contact your administrator
for enabling the same.

Accepted/Good Quantity

Materials found as per terms and required specification/quality are accepted as it is. The details of these
material receipt are sent to accounts to make necessary accounting (Bill Passing) entries

Sending for Rework    

Materials found not as per required specification and quality and which can be rectified by doing additional
work are called rework items.  The need for rework may be found during inspection at the time of purchase
or later.  These materials are sent to vendors for rectification.

Normally these are sent as Rework-Delivery Note which are returnable. Please see section on Vendor-Rework for
more detail.

Sending Rejected Material

Materials found not as per required specification or as per terms may be rejected and sent back to supplier.

Normally these are sent as Rejection  Delivery Note which are NOT returnable. Please see section on Vendor-Rejection  for
more detail.

For eg.

During MIN-Inspection or Inspection, item received and inspected are as follows

Item                        Doc.Qty       Received Qty     Good Qty    Rework Qty     Rejected  Qty      
Item-A                           10                          10                            6                          3                                   1

Here the vendor has supplied  10 Nos of Item-A,  out of this

6 are found in good condition,
3 in rework stage and
1 rejected

In this scenario, out of the 10 Nos received,

6 Qty will be added to Good stock for further use and the MIN will be available for Bill passing

3 Qty will be added to Rework stock and MIN is available for sending the material back to vendor for re-work

1 Qty will be added to Rejected stock and will be available for sending the material back to vendor.