3. Supply BOQ

BOQs that are essentially Material Supply are referred to as Supply BOQs. Supply BOQ Items should be billed through a Measurement and an RA Bill.

Supply BOQs require that the item to be supplied to the Customer be designated as a Primary Supply Item and it be procured and received at the site (through an MRN) first before a Measurement can be recorded. Once the Measurement for the Supply BOQ has been recorded the following steps happen:

1. When the Measurement for the Supply BOQ is recorded and approved - the Primary Supply Item is automatically issued to the Customer.
2. The Material Issue Note so created is approved and the Stock is reduced from the Inventory by the measured quantity of the Supply BOQ. NB: The UOM of the Supply BOQ and the Stocking UOM of the Primary Supply Item should be same or at least have a conversion factor of 1.
3. This item is then returned back to Stock as Customer Free Issue Material - this too happens automatically.

The net effect is that as the Supply BOQ's Measurement is approved - the primary supply item is issued to the customer and is reduced from Stock. This same item is then returned back into Stock but at zero value. This way the net stock position in quantity is not affected but is reduced in value by the cost of the material that has been measured.

The RA Bill must then be created separately for the Measurement just recorded. The process is as: