Overs and unders

When a supplier receives an order, they will often order excess raw material for production. This is because some product will be lost over the course of production, often due to defects, and this helps make sure they hit the target quantity of the order. This results in the final quantity being either over or under the target quantity outlined in the PO.

How does this impact my order?

When placing an order, we make buyers and suppliers agree to accept a minimum over or under of the target quantity by default. This is standard practice for the industry. Though we try to avoid it, sometimes the over or under may exceed the minimum over/under delta.

If the delta is under the minimum, you can:

  1. Choose to close out the PO and accept the produced amount. The original PO will be revised, deducting the cost of the delta.

  2. Continue production to the target quantity. The original PO will be revised, deducting the cost of the delta, and the originally produced quantity will be shipped to you. A new PO will be issued for the remaining quantity and this will be produced and shipped separately.

If the delta is over the minimum, you can:

  1. Choose to accept the delta. The original PO will be revised, adding the cost of the full delta, and the produced quantity will be shipped to you.

  2. Refuse to accept the delta. The original PO will be revised, adding only the cost of the minimum delta, and the produced quantity will be shipped to you.

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