In NetSuite, “overage” typically refers to the extra quantity or amount received beyond what was ordered or expected. This term is often used in the context of inventory management, purchasing, and receiving processes. Here’s a detailed explanation of how overage might be handled in NetSuite:
Receiving More Goods than Ordered:
When you receive more goods than were ordered on a purchase order, this is referred to as overage. For instance, if you ordered 100 units of a product but received 110 units, you have an overage of 10 units.
Inventory Adjustments:
Overage can also occur during inventory counts if the physical count of an item exceeds the recorded quantity in NetSuite.
Managing Overage in NetSuite
Receipt of Items:
Standard Purchase Orders: When receiving items against a purchase order, you can enter the actual quantity received, even if it exceeds the ordered quantity. NetSuite will record this overage.
Item Receipts: Navigate to the item receipt form where you can manually adjust the received quantity to reflect the overage.
Inventory Adjustments:
You can perform inventory adjustments to account for overage discovered during physical counts. This involves creating an inventory adjustment transaction to increase the quantity of the affected items.
Steps to Handle Overage in Item Receipt:
Navigate to the Item Receipt:
Go to Transactions > Purchases/Vendors > Receive Orders.
Select the Purchase Order:
Choose the relevant purchase order against which you are receiving the items.
Enter the Actual Quantity Received:
In the Quantity Received column, enter the actual quantity received, including the overage. For example, if you received 110 units instead of the ordered 100 units, enter 110 in the Quantity Received field.
Save the Item Receipt:
Review the entered details and save the item receipt. NetSuite will record the overage, and your inventory levels will be updated accordingly.