Periodic Receipts – Single Receipts: Example
Business Transactions for Material A in a Period
|
Quantity |
Price |
Stock posting | |
Starting stock |
0 pieces |
||
Purchase order |
100 pieces |
10.00 |
|
1st goods receipt for purchase order |
20 pieces |
200.00 | |
2nd goods receipt for purchase order |
80 pieces |
800.00 | |
Invoice |
50 pieces |
12.00 |
100.00 |
Goods issue |
70 pieces |
||
Closing stock |
30 pieces |
LIFO Valuation Based on Period Receipts
When you use period receipts as a basis, the value of the receipts for the period is 1100.00 for a receipt quantity of 100 pieces.
A layer is created for 30 pieces. If the value is determined on a progressive quantity fill-up basis, the value of the layer is 30 x 1100.00 / 100 pieces = 330.00.
LIFO Valuation Based on Single Receipts
When you use single receipts as a basis, the system splits up the values from the invoice among the goods receipts in chronological order on a progressive quantity fill-up basis.
|
Quantity |
Value |
LIFO receipt value | |
1st goods receipt |
20 pieces |
200.00 |
240.00 |
2nd goods receipt |
80 pieces |
800.00 |
860.00 |
The LIFO value of the two goods receipts is calculated as follows:
200.00 + (20 pieces x 100.00 / 50 pieces) = 240.00 or
800.00 + (30 pieces x 100.00 / 50 pieces) = 860.00
A layer is created for 30 pieces. If the value is determined on a progressive quantity fill-up basis, the value of the layer is 240.00 + 10 x 860.00 / 80 pieces = 347.50.