Handling Finished Product Receiving Discrepancies
We verify shipped finished product counts to our retail customers.
If and when there is a discrepancy of that received count from retail customer how does one account for the loss according to traceability and how is it documented properly? (This discrepancy would not be from damage or refusal).
So you receive goods from a supplier with discrepancy? You contact them immediately. You should be recording qty received on your doc for traceability. Your PO/SO form has qty ordered and qty received, mark it accordingly.
Finished product count discrepancy is not being received by us, the finished product is what is being shipped TO our customers and is what THEY receive and record as a count which is the discrepancy that needs to be reconciled and documented by us as loss, but not because of damage or refusal.
Then first find out what's causing such discrepancies, worry about documentation later.
Finished product count discrepancy is not being received by us, the finished product is what is being shipped TO our customers and is what THEY receive and record as a count which is the discrepancy that needs to be reconciled and documented by us as loss, but not because of damage or refusal.
So you're shipping out incorrect quantities? I don't know what you make or how it's packaged, but every pallet that leaves my place has exact count on it, and if we're short on an order, which happens sometimes, it's reflected. Are you guys just not counting when you palletize your product? How often does this happen?
I agree with Kconf, RCA needs to be done.
RCA can be done in house for our count errors, but what I am asking about how to document the customer has counted in error and record this loss properly for traceability. Counts verified at shipment but count discrepancy at customer...how is this documented for traceability? Not damaged, not refused but counts are different. Do they disappear? Where they removed? How is this documented if this ever happens, NOT a normal day-to-day shipping count error.
You both can't be right. If your counts are verified then the customer's discrepancy doesn't matter. First establish whether the discrepancies are true or not.
Nothing disappears. If you have to ship out more quantity to make up for the loss based on customer's complaint, you ship from your inventory that gets documented. You cannot go back and change quantity based off of customer's claim once goods leave your premise.
Product can be replaced if shorted that is not the problem. What do you do with the counts that are different and our inventory is correct but customer won't admit counting error. The receiving count will be different than shipped so something has to be documented about the discrepancy and so do you document receiving count error by customer?
If the customer is right then you should have extra inventory unaccounted for. Why do you care about receiving counts at their end? I am not a bookkeeper, but is it how it's done? Their receiving = your sending.
Product can be replaced if shorted that is not the problem. What do you do with the counts that are different and our inventory is correct but customer won't admit counting error. The receiving count will be different than shipped so something has to be documented about the discrepancy and so do you document receiving count error by customer?
Your traceability and inventory methods can track various kinds of 'waste'. One of those can be "give away" or some similarly purposed category, as long as you record it and understand where it went, your traceability responsibilities are covered.
kconf, you are absolutely correct that received = shipped but accounting for it thanks G M. this makes the most sense as waste or giveaway as long as we know where the product was shipped.