Example: Reducing Purchase Order Commitments to Zero
You post the final goods receipt for one PC. The purchase order commitment is reduced to zero and fully converted into actual costs. The order report documents the reduction to zero of the purchase order commitment:
Reducing the purchase order commitment to zero
Business Transaction
|
Actual |
Commitment |
Assigned (actual + commitment) |
1. Purchase order for 3 PCs at USD 1,500.00 each + USD 150.00 shipping charges |
./. |
4,650.00 |
4,650.00 |
2. Goods receipt for two PCs |
3,100.00 |
1,550.00 |
4,650.00 |
3. Invoice receipt for three PCs, USD 2,000.00 each |
4,100.00 |
2,050.00 |
6,150.00 |
4. Goods receipt for one PC |
6,150.00 |
./. |
6,150.00 |