Accounting Finance:Short shipments/Over shipments/Wrong items shipped/Damaged Items

Short Shipments

• Short shipments are when packing slips do not match the items received
• There are three possible types of short shipments:

- Items are listed on purchase order and packing slip but not received (true short shipment). This error will be detected by Receiving

- Items are not listed on purchase order but are listed on packing slip (vendor error). This error will be detected by Costing

- Courier is sending additional items on another shipment (courier short). This will be detected by Receiving and Receiving will hold onto shipment for 5 business days before handling shipment as a short shipment.

• Receiving using PO Lines Enquiry will identify short shipments
• Receiving will confirm short shipments by referencing back to packing slip
• Finance department will not debit back for short shipments under $50
• If vendor has been advised of short shipment but short shipment was later discovered to be not a short shipment, Receiving must notify the vendor to disregard the original claim.

• Receiving will create new Hotline incident and contact vendor to advise of short shipment
• Hotline incident

- Enter Customer number

- Enter Cust order number (PO#)

- Enter Handler <Receiver name>

- Enter Status <NEW>

- Enter Problem <VSS> (Vendor short shipment)

- Enter Resolution <DNR> (Debit note required)

- Enter Vendor Claim Notification (under Contact), telephone #, telefax #, and location (VCN – GORDIEL – 092805)

- Effective 08/21/07 – Vendor Claim Notification info. Will be entered in Notes instead of incident header

- Click enter to time stamp incident

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• Select Notes
• Enter standard notes format *VSS* Item # (if no item #, enter UPC), item description, size and additional notes)
• Example: *VSS* Item#00807396 - 25 c Twizlators Strw Smth, 36’s (short shipped 2 cases)
• Click Update
• Click F12 twice to move back to previous panel

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• If there are more than 10 lines of discrepancies, discrepancies will be entered on PO Discrepancy Report
• Example: *VSS* (see PO Discrepancy Report for listing)
• Receiving documents and PO Discrepancy Report will be forwarded to Buyer.
• Hotline incident # must be entered onto PO Discrepancy Report

• Receiving will forward Hotline to Buyer advising the Buyer of short shipment
• Hotline incident

- Retrieve Hotline incident

- Change Handler BUYER

- Enter Status VSS (Vendor short shipment)

- Click enter to time stamp incident

• Buyer will retrieve Hotline incident

- Select Notes

- Select Add

- Enter standard notes format **PO REVIEWED** and additional notes

- Example: *PO REVIEWED* PO#8002405 was adjusted – items will not be shipped - line zero out

- Click Update

- Click F12 to move back to previous panel

- Change Handler to SIONYA/CHRISTINET

- Change Status DNR (Debit note required)

- Click enter to time stamp incident

• Cost Accountant will retrieve Hotline incident

- Select Notes

- Select Add

- Enter standard notes format *DN* and additional notes

- Example: *DN* DN#8003333 charged to vendor and deducted from payment

- Click Update

- Click F12 to move back to previous panel

- Change Status CMP

- Click enter to time stamp incident

If short shipment was not noted on way bill but items were found

• Costing will forward Hotline to Receiving requesting a cycle count
• New Hotline incident

- Enter Customer number

- Enter Cust order number (PO#)

- Enter Handler SIONYA/CHRISTINET

- Enter Status NEW

- Enter Problem VSS (Vendor short shipment)

- Enter Resolution CCR (cycle count required)

- Click enter to time stamp incident

- Select Notes

- Enter standard notes format (*CCR* and additional notes)

- Example: *CCR* Item#00807396 Invoiced: 4 cases

- Received: 2 cases

- Click Update

- Click F12 to move back to previous panel

- Retrieve Hotline incident

- Change Handler to SONNYV

- Change Status CCR (Cycle count required)

- Click enter to time stamp incident

• Shelf Maintenance will retrieve Hotline incident

- Select Notes

- Select Add

- Enter standard notes format (*CC” and additional notes)

- Example: *CC* ITEM#00807396 - shelf: 4 cases computer: 2 cases (no short shipment – items found)

- Click Update

- Click F12 to move back to previous panel

- Change Handler SIONYA/CHRISTINET

- Change Status CCC (Cycle Count Completed)

- Click enter to time stamp incident

- If the items were confirmed as short shipment go to ENT/RE/16.

• Cost Accountant will retrieve Hotline incident

- Select Notes

- Select Add

- Enter standard notes format (*REMOVE VCN” and additional notes)

- Example: *REMOVE VCN* Please contact vendor and advise that there was no short shipment

- Click Update

- Click F12 to move back to previous panel

- Change Handler RCVPROBLEM

- Change Status VCR (Vendor claim notification required)

- Click enter to time stamp incident

• Receiving retrieve Hotline incident

- Select Notes

- Select Add

- Enter standard notes format (*VCN” and additional notes)

- Example: *VCN* Vendor contacted and advised of error – no short shipment

- Click Update

- Click F12 to move back to previous panel

- Change Handler BUYER

- Change Status VSS (Vendor Short Shipment)

- Click enter to time stamp incident

• Buyer will retrieve Hotline incident

- Select Notes

- Select Add

- Enter standard notes format *POR* and additional notes

- Example: *POR* Please receive ITEM#00807396 – 2 cases under original PO# 8002405

- Click Update

- Click F12 to move back to previous panel

- Change Handler RCVPROBLEM

- Change Status POR/XFR (Purchase order or reference PO received)

- Click enter to time stamp incident

• Receiving receives items into inventory
• Receiving will retrieve Hotline incident

- Select Notes

- Select Add

- Enter standard notes format *PO RECEIVED* and additional notes

- Example: *PO RECEIVED* received by GORDIEL

- Click Update

- Click F12 to move back to previous panel

- Change Status CMP

- Click enter to time stamp incident

If short shipment was not noted on way bill and/or items were confirmed as short shipped

• Costing will forward Hotline to Receiving requesting a cycle count
• New Hotline incident

- Enter Handler SIONYA/CHRISTINET

- Enter Status NEW

- Enter problem VSS (Vendor short shipment)

- Enter resolution CCR (cycle count required)

- Click enter to time stamp incident

- Select Notes

- Select Add

- Enter standard notes format (*CCR” and additional notes)

- Example: *CCR* Item#00807396 - Invoiced: 4 cases

- Received: 2 cases

- Click Update

- Click F12 twice to time stamp incident

- Retrieve Hotline incident

- Change Handler to SONNYV

- Change Status CCR (Cycle count required)

- Click enter to time stamp incident

• Shelf Maintenance will retrieve Hotline incident

- Select Notes

- Select Add

- Enter standard notes format (*CC” and additional notes)

- Example: *CC* - shelf: 2 cases, computer: 2 cases (short shipment confirmed)

- Click Update

- Click F12 to move back to previous panel

- Change Handler SIONYA/CHRISTINET

- Change Status CCC (Cycle Count Completed)

- Click enter to time stamp incident

• Cost Accountant will retrieve Hotline incident

- Select Notes

- Select Add

- Enter standard notes format (*VCN” and additional notes)

- Example: *VCN* Receiving please fax vendor claim notification to vendor

- Click Update

- Click F12 to move back to previous panel

- Change Handler RCVPROBLEM

- Change Status VCR (Vendor claim notification required)

- Click enter to time stamp incident