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The AI-Native Manufacturing ERP Platform

ianaiERP

ianaiERP unifies ERP, manufacturing execution, warehouse, planning, equipment and HR in one system — configured by AI and live in about 8 weeks.

Platform

  • Platform Overview
  • Inventory Management
  • Warehouse Management System (WMS)
  • Shop Floor Execution (MES)
  • Material Requirements Planning (MRP)
  • Asset Maintenance (CMMS)
  • Order Management & Fulfillment
  • Procurement & Purchasing
  • Financials & Accounting
  • Field Service
  • Project Management
  • AI Financial Officer
  • Workforce & Labor Tracking
  • CRM
  • No-Code Workflow Customization
  • Integrations
  • Reporting

Industries

  • Discrete & Custom Manufacturing
  • Wholesale Distribution ERP
  • Food & Beverage ERP
  • Cosmetics & Personal Care ERP
  • Biopharma Manufacturing ERP
  • Apparel & Fashion ERP

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  • Address

    1440 N Lakeview Ave
    Anaheim, CA 92807

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Nonconformance (NCR)

Guides

⌘K

getting-started

  • Introduction to ianaiERPPopular
  • Settings / Preferences
  • Dashboard (List View) & Reports
  • Data Import/Export

inventory

  • ItemPopular
  • Inventory Adjustment
  • Inventory Transfer
  • Lot Tracking
  • Bin Tracking
  • Item Options and Dynamic Templates
  • Serial Tracking

manufacturing

  • Bill of Materials (BOM)
  • Build
  • Engineering (Overview)
  • Engineering Changes (ECO)
  • Routing
  • Operation Definitions
  • Work Orders
  • Work Plan
  • BOM Rule
  • Jobs
  • Job Materials Planning & Compliance
  • Shop Floor
  • Shop Floor Layout
  • Subcontract Manufacturing
  • Subcontracting Routing Operations
  • Receiving Subcontract Work
  • Shop Floor Station
  • Advanced Manufacturing

purchase

  • Procurement Workflow
  • Vendor
  • Purchase Order
  • Item Receipt
  • Blanket Purchase Order
  • Vendor Return

sales

  • Sales Workflow
  • Customer
  • Estimate
  • Sales Order / Payment
  • Price Rule
  • Blanket Sales Order

shipping

  • Shipment
  • Shipping, Label Printing, and Tracking
  • Carrier Integrations
  • Ship Method Mapping
  • Rule-Based Automation
  • International Shipping
  • Third-Party Billing
  • ianaiERP Bridge
  • Troubleshooting Shipping Issues
  • USPS Cubic Rates in ianaiERP
  • USPS Pricing

return

  • Returns
  • RMA
  • Restock
  • Repair
  • Credit Memo
  • Refund

miscellaneous-setup

  • Miscellaneous

customization

  • Custom Field
  • Custom Script
  • Vendor-Item Catalog
  • Units of Measure (UOM)

integration

  • Quickbooks Online Integration
  • Bigcommerce Integration
  • Shopify Integration

accounting

  • Journal
  • Transfer Funds
  • Bank Deposit
  • Expense
  • Chart of Accounts

equipment

  • Introduction
  • Equipment Hub
  • Work Centers
  • Resources & Resource Pools
  • Work Centers for CAPA
  • Asset Management
  • Maintenance Hub
  • Preventive Maintenance
  • Maintenance Events
  • Spare Parts & Consumables
  • Capacity Planner
  • Runtime Status
  • Permissions & Modules

planning

  • Supply-Demand Intelligence (Overview)
  • SDI Dashboard
  • Demand & Supply
  • Shortages & Impact
  • Planning View
  • Make vs Buy
  • Creating Purchase Orders
  • Demand Forecasting
  • Production Scheduling (Overview)
  • Schedule Views
  • Scheduling Work Orders
  • Capacity, Bottlenecks & Batching
  • Manufacturing Cockpit

project

  • Introduction
  • Projects & the Workspace
  • Tasks & the Work Tab
  • Budgeting
  • Estimates & Contracts
  • Time Tracking & Timesheets
  • Assignments & Team
  • Daily Logs
  • Files & Floor Plans
  • Change Orders
  • Billing & Financials

hr

  • Introduction
  • People & Team
  • Onboarding
  • Daily Hub & Shifts
  • Time Off & Leave
  • Broadcasts & Certificates
  • Payroll Overview
  • Payroll Tax & Compliance
  • Year-End & Severance
  • Benefits
  • HR Settings
  • Permissions & Setup Wizard

field-service

  • Introduction
  • Service Agreements
  • Service Requests & Dispatch
  • Request Templates
  • Workforce & Scheduling
  • Billing Service Requests

tax

  • Sales Tax Setup

quality

  • Introduction & Setup
  • Inspections
  • Nonconformance (NCR)
  • Holds & the Shipping Gate
  • Certificates & Traceability
  1. Home
  2. User Guide
  3. Nonconformance (NCR)

Nonconformance (NCR)

A nonconformance report (NCR) records material that does not meet its requirements and what is done about it. It captures what is wrong, how it was contained and why it happened, then lists dispositions — use the material as is, rework it, scrap it or return it to the vendor. Running a disposition does the real work: scrapping takes stock out, returning to the vendor creates and ships a vendor return.

Where to Access

Quality → Issues, Nonconformance view. From there:

  • Choose New nonconformance to create one by hand.
  • Use Raise nonconformance on a quality hold to open one pre-filled from the hold.
  • An inspection whose plan is set to Hold it and open a nonconformance opens a draft report automatically when it fails, filled in from the failed checkpoints.

Report Fields

  • Title – A short name for the problem.
  • Item, lot or serials – The material the report covers.
  • Quantity – How much is nonconforming.
  • What is wrong – A description of the nonconformance.
  • Containment – What was done to stop the problem spreading.
  • Root cause – Why it happened.
  • Cost impact – The expected cost; approval is judged on it.
  • Dispositions – What is done with the material (see below).

Dispositions

DispositionWhat running it does
Use as isNothing moves; the material is accepted.
ReworkNeeds the work order and a failed in-process or final inspection linked to the report; opens a re-inspection that must pass.
ScrapRemoves the quantity from stock, charged to the Quality Scrap Account.
Return to vendorNeeds the vendor; creates a vendor return and sends the goods back.

The material can be split between dispositions — for example part scrapped and part returned. Each disposition then needs its own quantity, and together they must add up to the nonconforming quantity.

A vendor return raised this way is numbered after the report, and its reason and notes name the nonconformance. Record the vendor's credit on it the usual way — see Vendor Return.

How Status Works

StatusMeaning
DraftOpened automatically by a failed inspection
OpenCreated by hand
Pending ApprovalSubmitted and waiting for approval
ApprovedApproved — or approved at once when no approval rule applies
RejectedSent back; edit it and choose Submit again
In ProgressAt least one disposition has run
ClosedEvery disposition has run
CancelledWithdrawn before any disposition ran

Working a Report

  1. Fill in the fields and the dispositions, then save.
  2. Choose Submit to send it for approval. If no approval rule applies, it is approved straight away.
  3. Once approved, choose Run on each disposition.
  4. When the last disposition has run, the holds the report covers are released.
  5. Choose Close nonconformance.

A Rework disposition also needs its re-inspection to pass (or be waived) before the report can close.

While a Report Is Open

The lot, serials or received stock an open report names cannot ship, whatever the quality profile says about shipping. This keeps material under investigation from leaving by accident. See Holds & the Shipping Gate.

Common Problems

  • "I cannot cancel a nonconformance." A report cannot be cancelled once any disposition has run, or after it is closed. Finish running the dispositions and close it instead.
  • "The dispositions will not save." When the material is split, each disposition needs a quantity, and the quantities must add up to the nonconforming quantity.
  • "Close is not offered." Not every disposition has run yet.
  • "Close is refused after rework." The rework re-inspection has not passed yet. Complete it, then close.
  • "The material is still held after I waived the inspection." Waiving an inspection does not release its hold; running the report's last disposition does.

Best Practices

  • Fill in Containment as soon as the report is opened — it is the part other people act on first.
  • Put a realistic Cost impact on every report so approvers can judge it.
  • Use Return to vendor rather than a manual vendor return for supplier defects, so the return is linked to the report.

Related docs

  • Introduction & Setup
  • Inspections
  • Holds & the Shipping Gate
  • Vendor Return
  • Work Orders
PreviousInspectionsNext Holds & the Shipping Gate

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