INTRODUCTION

When items are transferred to POS stores from their replenishment sites, sometimes the following can happen due to human errors (during data entry or packing) –

1. Items physically shipped are more than the transfer document qty (excess delivery)
2. Items physically shipped are less than the transfer document qty (short delivery)

 Organizations which follow proper delivery processes like to put a check against human errors in POS GRC entry by putting a tolerance limit (%) against the packet value.

 Why is the tolerance limit not defined at quantity level?

The transferred items, in many cases, are in large quantities, so it becomes difficult and often irrational to manage the tolerance limit at item quantity level. E.g. a tolerance level of 10% at item quantity level does not make any sense for an item that has been sent as 1 qty (assuming that the sale factor of that item = 1, user cannot receive 0.9 or 1.1. quantities of the item). Hence, organizations find it easier to manage deviations at a packet value level.

How does tolerance level control errors?

If tolerance limit is defined, then short/excess amount can only be booked in accordance to the tolerance factor preventing any human error. In case an error has happened (either in physical shipment or in document quantity) beyond the tolerance limit, the store has to get in touch with a local user (e.g. The Store Manager) who has a higher tolerance limit to get the entry done. In case the deviation went beyond the limits of all POS users then HO has to intervene.

The intervention allows a higher authority to verify what went wrong. Inventory posting will not be allowed for a GRC where such packets exist.

Sample behavior of the tolerance limit

Let's assume that the tolerance factors for short as well as excess amount bookings are defined as 5% in the Master/Site Policy. Now in a GRC there is a packet where Sent Amount (Sent Qty x Rate) = Rs. 10,000. This packet can be received in POS as long as the Received Amount {(Received Qty + Damaged Qty) x Rate} of the packet is within Rs. 9,500 (5% short limit) to Rs. 10,500 (5% excess limit).

STEP-BY-STEP GUIDE

How is the tolerance level defined?

The tolerance limits can be configured through two new policy settings “Short Goods Receive Tolerance %” and “Excess Goods Receive Tolerance %” available in Master Policy. Both of these are User Settings which means they can be allocated at Site Policy or Role Policy. When assigned at Role Policy, it means that there can be more than one user at POS with different levels of tolerance limit. E.g. the Store Manager may have a tolerance limit of 25% while the general user will have a limit of 10%.

1. Go to Retail Management on the GINESYS Web
2. In Setup go to Master Policy in the Manage section.
3. Go to the User Settings tab and look up the two policies - “Short Goods Receive Tolerance %” and “Excess Goods Receive Tolerance %” 
4. Set the spinner at your desired level for “Short Goods Receive Tolerance %” 
5. Set the spinner at your desired level for “Excess Goods Receive Tolerance %”
6. Sync the changed policy to the relevant stores.

In the Store end - 

1. Run sync to get the changed policies to the store.
2. Go to the POS Back office module and under the Transaction menu go to Goods Receive.
3. Start receiving goods, you will only be allowed to receive packets within the tolerance limits defined in the policy by HO.