Procurement does not end with a Purchase Order. It ends when materials actually arrive at the warehouse, are verified against the order, and are recorded in the system. Until that happens, the stock is not real.
In manufacturing, this final step matters more than it is often given credit for. A delay in receiving, a missed discrepancy, or an unrecorded shipment can hold up an entire Production Run, even when all the planning and purchasing has gone correctly. The materials may have arrived physically, but until the system reflects that, they are invisible to production planning.
Apache OFBiz handles this through its Inventory Receiving process, which connects directly to the Purchase Order module. When goods arrive, the system validates the receipt against the open order, updates stock levels in real time, and makes the materials immediately available for production.
Inventory Receiving is the process of verifying and recording the arrival of goods from a supplier. It confirms that what was ordered has actually arrived, in the right quantity and condition, and updates the system accordingly.
In practical terms, this is the step where a planned purchase becomes available stock. Until receiving is completed, materials cannot be allocated to production, regardless of whether the Purchase Order was approved weeks ago.
• Confirm that received goods match the items and quantities listed in the Purchase Order
• Record actual quantities and note any shortages or damaged items
• Update inventory levels and assign storage locations within the facility
• Maintain full traceability for financial reporting and audit purposes
• Trigger the downstream workflow, making received materials available for production
Apache OFBiz structures the receiving process around shipments. Every incoming delivery, whether tied to a Purchase Order or received independently, is logged as a shipment record. The system then updates all related modules automatically once the receipt is confirmed.
Inventory Receiving sits between procurement and production. Once a supplier delivers materials against a Purchase Order, the warehouse team records the receipt using the Facility module of Apache OFBiz. Apache OFBiz validates each item against the open PO, updates stock quantities, and marks the Purchase Order as received once all items are accounted for.
This step is what makes materials production-ready. Before receiving is complete, the components exist only on paper. After receiving, they are live in inventory and available for the next Production Run.
Each inventory receipt in Apache OFBiz is structured around the following elements:
• Shipment Header: Contains the shipment ID, supplier details, shipment type, and date of receipt
• Shipment Items: Lists the products received, their quantities, and the Purchase Order lines they correspond to
• Facility and Location: Specifies where each item will be stored within the warehouse
• Status Tracking: Monitors progress through stages such as Created, Approved, Hold, and Completed
• Purchase Order Module: The linked PO moves to Completed once all items are received and payment is processed
• Inventory Module: Stock quantities and storage locations are updated in real time
• Accounting Module: Goods receipts are logged for valuation and financial tracking
• Production Module: Received materials become immediately available for upcoming Production Runs
Continuing with the skateboard manufacturing example from earlier in this series: after running MRP, Apache OFBiz generated Purchase Orders for two externally sourced components, Sticker (STC1001) and Warranty Card (STC1002). When the supplier delivers these items, the warehouse team opens the corresponding Purchase Order in the Facility module and records the quantities received.
Once the receipt is confirmed, Apache OFBiz updates inventory levels for both components, changes the Purchase Order status to Received, and makes the items available for the upcoming skateboard Production Run.
Apache OFBiz supports two methods for recording incoming inventory, depending on whether the receipt is tied to a Purchase Order or is being logged independently.
This is the standard method for goods arriving against an approved PO. It ensures every receipt is directly traceable to a procurement record.
1. Navigate to Order Management and go to Orders > Find Order
2. Enter the Order ID and click Find, then open the Purchase Order from the results
3. On the Purchase Order Details screen, go to the Actions section and click Receive
4. Select the Shipment ID and click Receive Selected Shipment
5. Inspect the items and enter the received quantities for each product
6. Click Receive Selected Product(s) to update inventory and finalize the receipt
For ad hoc or unplanned inflows not tied to any Purchase Order, such as free samples, found stock, or inventory corrections, items can be received directly through the Facility module without any PO or shipment reference.
7. Navigate to the Facility module and select your specific facility and open the Receive Inventory screen
8. Enter the product details, quantity, directly, with no PO reference required
9. Confirm the receipt to immediately update Quantity on Hand and Available to Promise levels
10. Apache OFBiz records the receipt with a full audit trail in inventory, with no link to procurement or financial transactions
For detailed step-by-step instructions, refer to the Inventory Receiving guide on the Apache OFBiz Confluence wiki.
Inventory Receiving is the step that completes the procurement cycle and unlocks production. Without it, even a perfectly executed Purchase Order leaves materials unavailable to the manufacturing process.
Apache OFBiz handles this through tight integration across the Purchase Order, Inventory, and Accounting modules, ensuring every receipt is accurate, traceable, and immediately reflected in stock. There is no gap between what was ordered and what the system knows is available.
With materials received and stock updated, the next stage is putting them to use. The following blog in this series covers Production Run in Apache OFBiz, where received components are assembled into finished goods through a structured, system-driven manufacturing process.
Looking to streamline procurement and inventory operations with Apache OFBiz? Connect with HotWax Systems for an implementation built around your operations.