Finished Goods Receipt Note · Standard Operating Procedure

1. Purpose

The Finished Goods Receipt Note (FGRN) is the document that formally moves a completed production batch from work-in-progress into finished-goods inventory. Once the operator's tally is CONFIRMED and the QC inspector has stamped a PASS verdict, the storeman receives the pallets, the supervisor releases them, and finance authorises the cost roll-up. Posting the FGRN closes the production order in production_batches.status = 'COMPLETED' and creates a PROD_IN inventory transaction against the FG warehouse for each FG line.

This document mirrors Sage X3 "Manufacturing Receipt", Syspro "Job Receipt", SAP S/4HANA "Goods Receipt for Production Order" (MIGO 101 with mvt 101) and NetSuite "Work Order Completion". It is the document that turns RM cost + labour cost + machine cost into a finished-goods unit-cost on the GL.

Without an FGRN posted, no FG is visible in the v_warehouse_value view, no stock can be picked for dispatch, and no Sales Order can move to COMPLETE. Like the GRN, this is a blocking step — this time for the order-to-cash flow.

2. When to use

• Production batch reaches COMPLETED status — tally CONFIRMED + QC PASS.
• Multi-SKU co-product batch — one BOM produces multiple FG codes; FGRN carries multiple lines.
• Partial completion — a 5 000-unit batch finishes 4 000 units; FGRN is posted for 4 000, balance held as IN_PROGRESS or split.
• Rework re-receipt — previously rejected stock is repaired and re-received via a corrective FGRN.
• Sample / pilot build receipt — small-batch FGRN for QC qualification before full release to dispatch.
• QC FAIL routing — FGRN is posted with QC verdict FAIL into a QUARANTINE warehouse, not the FG-MAIN aisle.
• Inter-plant transfer of finished stock from a third-party manufacturer arriving as FG — recorded against a placeholder batch.
• Year-end physical count adjustments — if FG count differs from system, FGRN-style entries reconcile.

3. Data sources

The FgrnDoc spec (frontend/js/erp-templates/fgrn-doc.js) is built from the completed batch + tally sheet + FG inventory snapshot. Each row below is wired to a real column.

4. Step-by-step workflow

1. Tally CONFIRMED, QC PASS — preconditions. The Tally Sheet is locked at CONFIRMED and the QC inspector has signed the Job Card checklist.
2. Supervisor calls complete endpoint — POST /api/production-batches/:id/complete with actual_qty = tally_sheets.net_qty. The endpoint:
   • Posts a PROD_IN inventory transaction for the FG into the configured FG warehouse.
   • Computes yield_pct = actual / planned × 100, wastage_pct = (planned − actual) / planned × 100.
   • Sets completed_at = NOW() and flips status to COMPLETED.
3. Generate FGRN PDF — from the batch detail or Finished Goods view, click Print FGRN. Frontend calls FgrnDoc.build(batch, tally, fgInventory).print().
4. Storeman receives physical pallets — the storeman in the FG warehouse takes physical receipt of the pallets, cross-checks the count vs the FGRN, and signs the storeman line.
5. Lot label — storeman stamps the pallet with the FGRN ref + lot number; barcode scan posts a barcode_scans row for traceability.
6. Supervisor releases — production supervisor signs to release the goods from production responsibility into FG storeroom responsibility.
7. Finance authorises — finance reviews the BOM cost variance (std vs actual). For variance > +5%, finance investigates before signing. Standard practice is to authorise within 24 hours of completion.
8. FG inventory visible — v_warehouse_value view now reflects the new FG units & rand value. Sales Orders pegged to this FG can pick from the new stock.
9. Realtime broadcast — the production + inventory realtime channels signal: WIP Tracking removes the batch tile, Finished Goods view adds it, dashboard counters tick over.
10. Archive — printed FGRN is scanned, uploaded to POST /api/documents with kind=OTHER; document_links ties it to entity_type='production_batch'. Retained 7 years.

5. Roles & permissions

Permission gate enforced by requireRole('admin','planner','supervisor') on POST /api/production-batches/:id/complete. Reversal requires admin role & audit reason.

6. Common scenarios

7. Related documents

8. Approval signatures

9. SLA & escalation

10. Glossary

• FGRN — Finished Goods Receipt Note. Closes a production order & posts FG to inventory.
• Yield % — actual_qty / planned_qty × 100. The "how much we made vs how much we said we'd make" KPI.
• Wastage % — (planned − actual) / planned × 100. Inverse of yield + scrap.
• BOM cost variance — Difference between standard RM cost (BOM-implied) and actual RM cost (issue txns). > +5% triggers finance investigation.
• QC verdict — PASS / FAIL / REWORK. Drives the destination warehouse on the FGRN.