One of the most important steps of the supply chain is the preparation of the Receiving Advice document.

 

The information of this document ensures that the most important document, the Invoice, can be issued in an error-free and complete manner.

 

Selling companies often prepare invoices according to the amount of goods on the ORDER document they receive or on the waybill (DESADV) they send.

 

In practice, the supplier may not have shipped as many goods as received the order. Or the buyer may have sent back some of the goods they shipped for different reasons (deterioration, breakage, tearing, etc.) without accepting it.

 

For companies that do not follow complete EDI order process, with the Receiving Advice document, a new process may appear under the name of Return Invoice. Since Return Invoices are usually issued sometime after delivery, they are difficult for the seller to associate it with the relevant Order or Waybill. The mutual reconciliation process of the two business partners could be initiated.

 

In the processes where the Receiving Advice document is used, the disputes in the process are minimized since the Seller prepares the invoice using the quantities in the Receiving Advice document and the prices in the Order document.