Record damaged stock during receiving and hold it: Count the whole delivery; separate sound units from those needing inspection.; Hold affected units in a marked area and give them a non-pickable status.; Record outcome after inspection: release, rework, claim, return or disposal.
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Warehouse Reporting

Part of Receiving and putaway technology

Recording damaged stock during receiving

Record damaged units by delivery and quantity, hold them in the warehouse and keep the later inspection decision traceable.

Desk Fulfilment Integration · · 4 min read

Record damaged stock as a separate, traceable quantity during receiving. Identify the affected goods and delivery, describe what was observed, put the units on hold and check that the stock record prevents ordinary use. A damage note on an otherwise saleable receipt can leave the physical and system records at odds.

Recording damaged stock during receiving: the sequence

  1. Count the whole deliveryEstablish the total received quantity before splitting sound units from units needing inspection.
  2. Separate sound units from units needing inspectionNote whether damage is confined to the outer carton or visible on the product.
  3. Record the affected groupPurchase order line, delivery reference, item and variant, quantity and unit, observed condition, receiving location, person making the entry.
  4. Move the units to a marked inspection positionUse a marked position or controlled container and record that destination.
  5. Put a hold on the system quantityApply a non-pickable inventory status or another effective hold so the units cannot be picked.
  6. Inspect and record the authorised outcomeRelease, rework, supplier claim, return or disposal, as applicable to the site.
  7. Reconcile and close the exceptionCompare the held physical units with the held system quantity and recorded destination.

Separate arrival from acceptance

Count the whole delivery, then distinguish sound units from units needing inspection. Note whether damage is confined to the outer carton or visible on the product. A torn transport carton alone does not establish whether its contents are saleable; leave that decision to the authorised person.

For each affected group, retain the purchase order line, delivery reference, item and variant, quantity and unit, observed condition, receiving location and person who made the entry. If only part of a carton is affected, record how its units were counted. Keep the original observation when later inspection changes the disposition.

An observation such as “outer carton crushed; contents awaiting inspection” is more useful than an unsupported explanation of what caused the damage.

Details to capture for each affected group

  • Purchase order line
  • Delivery reference
  • Item and variant
  • Quantity and unit of measure
  • Observed condition, described without inferring a cause
  • Receiving location
  • Person who made the entry
  • How the units were counted where only part of a carton is affected
  • The original observation, retained when later inspection changes the disposition

Hold the goods and system quantity together

Move the physical units to a marked inspection position or controlled container and record that destination. Check that the corresponding quantity has a non-pickable inventory status or another effective hold. Staff must be able to find the units without exposing them to ordinary picking.

Dynamics 365 Supply Chain Management can display disposition codes during receiving. In its documented setup, a selected code can affect inventory status, work template and location directive; using a code for purchase order receiving is optional.

A purchase order putaway directive can use the code to choose a different destination. These results depend on the code, status, rule and worker menu being configured together. Check the resulting stock status and work, not just the code list.

Disposition codes during receiving: what the setup can affect

  • Disposition codes can be displayed during receiving
  • A selected code can affect inventory status
  • A selected code can affect the work template
  • A selected code can affect the location directive
  • Using a disposition code for purchase order receiving is optional
  • A purchase order putaway directive can use the code to choose a different destination
  • Check the resulting stock status and work, not just the code list

Resolve the exception without erasing it

After inspection, record the authorised outcome for the affected units: release, rework, supplier claim, return or disposal, as applicable to the site's process. Keep the initial damaged quantity, later decision, movement and any purchase receipt correction as separate events. The quantity physically received and the quantity accepted for sale may differ; the records should explain why.

Before closing the exception, compare the held physical units with the held system quantity and recorded destination. Confirm who owns any purchasing or supplier follow-up. If the goods are released, make the status change and movement traceable. If they remain on hold, leave an owner and next review action visible.

Before closing a damage exception

  • Held physical units match the held system quantity
  • The recorded destination matches where the units actually are
  • Initial damaged quantity, later decision, movement and any purchase receipt correction are kept as separate events
  • Purchasing or supplier follow-up has a named owner
  • A release is made traceable through the status change and movement
  • Units left on hold have a visible owner and next review action

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