Evaluated Receipts Settlement (ERS)
Micron is now paying for goods and services from the receipt data rather than from the supplier’s invoice. This
process is known as Evaluated Receipts Settlement (ERS) and allows Micron to better conform to the negotiated
payment terms by eliminating invoice to purchase order matching and reconciling.
Packing Slips and Bar Coding are Significantly More Important!
Your packing slip becomes very important in the Evaluated Receipts Settlement (ERS) process; not only for us to
accurately receive your shipment, but also for you to be accurately paid. You can help ensure the accuracy of the
receipt by following the bar coded label standards enclosed in this package. Packing slips and bar codes are a positive
contribution to the ERS program for Micron and our suppliers.
The following are critical elements needed on your packing slip. The items in bold type must be clearly identified
and it is suggested they also be bar coded.
Required on Bar Code and Packing Slip
Required Only on Packing Slip
Micron Purchase Order Number
Packing Slip Number
Blanket Purchase Order Release Number
Part Number (as shown on Micron Purchase Order)
Total Quantity (this shipment), plus unit of measure
Your company name, address, and phone #
Description
Date Shipped
Unit of Measure
Evaluated Receipt Settlement Key Requirements
•
Purchase order must be accurate and constitutes a legal document (price, payment terms, unit of measure,
part number, descriptions, and quantities).
•
Packing slips must reflect a confirmed purchase order number and be labeled appropriately with the
correct quantity shipped.
•
Purchase order acknowledgment information is important to the ERS process also. It is your responsibility
to check the purchase order confirming copy. Note any discrepancy and notify the Micron Buyer
immediately.
•
All repair, rework, expense or additional itemized costs must be communicated to the buyer prior to
shipment of materials.
•
Micron will not pay shipping and handling charges unless authorized on a non-ERS Micron purchase
order.
•
Payment — Seller shall issue a packing slip with the delivery of goods ordered by Micron under the
applicable order. The time period for any cash discount or payment shall commence from the date the
goods are received. Micron shall issue payment based on payment terms agreed upon with supplier and
stated on purchase order.
•
Please confirm our remit address and indicate discount terms on supplied postcard. This information is
normally printed on the invoice. All checks will be mailed to the address provided by your company. Only
return this postcard if you have not already completed one for Micron. Please notify Buyer if remit address
changes.
— Any incorrect information will result in incorrect payment. —
Events That Create Payments or Deductions
Receipt
Micron’s receipt transaction will create a payment liability record in the Accounts Payable system.
The amount paid is the quantity entered by Micron Receiving, multiplied by the unit price of the
purchase order item (quantity X unit price = amount paid).
The payment due date is determined based upon negotiated payment term and will be calculated
from the date goods and services are received.
If the packing slip is missing from the shipment, Receiving will enter "MS" and an eight digit number
representing the date.
Example: MS10071996
If the packing slip does not contain a number, Receiving will enter "NN" and an eight digit number
representing the date.
Example: NN10071996
If the packing slip is not legible, Receiving will enter "NL" and an eight digit number representing
the date.
Example: NL10071996
Returns
Materials returned by Micron that are dispositioned by the buyer as returned for credit will be shipped
to the supplier and a debit memo created. The debit shall be deducted from subsequent payments. The
amount of the debit will be the quantity returned multiplied by the applicable unit price of the material
(quantity returned X unit price = debit amount).
Some Paper Invoices Are Still Required
Paper invoices are still required on the following items:
•
Special charge items authorized by the Micron purchase order, i.e., pallet charges, drum
charges, customs, and duties. Special charge items included in the unit price should not be
invoiced. If special charges are necessary with your business, please contact your Micron
buyer and a separate purchase order will be created. The Micron buyer will make
arrangements to have the cost accumulate as agreed upon by the buyer and your company.
•
All non-ERS purchase orders that do not reference "ERS PO" in the "bill to" section of the
Micron purchase order.
Tax and Freight
Sales Tax
Micron has direct pay authority to the state of Idaho. Please contact the Micron Tax Department at
(208) 368-4787 with any questions.
Freight Charges
Micron ERS purchase orders specify collect or prepaid routing only. Freight charges will not be paid.
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Payment Admittance Advice Detail
PLEASE NOTE CODES
ERS Purchase Order
Evaluated Receipts
Settlement Summary
Except as defined in this guide,
you should not invoice. Invoices
sent (that apply to ERS orders)
will not be processed, referenced,
or returned to you. It is important
to us that you understand how the
ERS process works. This guide,
prepared jointly by our Accounts
Payable,
Purchasing,
and
Inventory Control departments,
should provide you with that
understanding. If you have any
questions about the process and
how it applies to your specific
situation, please contact your ERS
representatives
listed
in
the
Contacts section of this guide.
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