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Inv Receipt -
# Lot quantity UOM can be different from Receipt qty UOM. Posting has to take care of this.
# Total of lot qty has to be converted to receipt qty UOM to match total lot qty to receipt qty and raise alert for mismatch
# This has no association with Gross/Net UOM. Gross & Net for receipt and lot levels are optional feature. If used, then Net value has to be used as inventory value and units per pkg has to be calculated.
For example
Contract between wholesale supplier and Retail Shop says, retail will buy 10000 lb of sugar every month. Contract does not mention the packing details.
When 10000 lb of sugar is received, it comes in various packing. Each of these packing types will be lotted. So receipt qty is 10000 lb and lots could be in different packing types. Total of lots should match 10000 lb.
*Gross/Net UOM and values.*
Some business which consumes inventory for manufacturing deals with actual weight of the packs. A 50 lb bag need not necessary be exactly 50 lb weight, or a 50 GAL oil container need not necessary be exactly 50 GAL. However to produce x qty of finished good, blender has to consume 50 lb and 50 GAL. So if a 50 lb bag has only 49 lb, additional 1 lb has to be added. If 50 GAL oil has 50.25 GAL, 0.25 GAL has to be removed.
Such business requires to track gross/net for lots.
Other business like fuel and grain may not use lot tracking. However it makes or receive payments based on Net value. Business receives fuel with 1000 GAL. However when they measured Net is only 995 GAL. So payment is made only for 995 GAL. Received qty is 1000 GAL and contract/order is fullfilled.
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