Goods Receipts Using the Order Price Unit
Use
If the purchase order contains an order price unit that differs from the order unit (for example, order quantity in pieces, order price refers to kilos), you must enter the goods receipt in both units.
Entering the goods receipt quantity in both units of measure is important for three reasons:
The goods receipt is valuated on the basis of the goods receipt quantity in the order price unit.
Invoice verification is based on the goods receipt quantity in the order price unit.
Entering the goods receipt in the order price quantity allows the system to immediately detect and report variances in the order price quantity during the goods receipt.
Variance Tolerances
In the Customizing system for Inventory Management, you can define two tolerances for variances in the order price quantity:
Tolerance for an error message: if the variance is larger than this tolerance specified, the system issues an error message, and you cannot post the goods receipt.
Tolerance for a warning message: if the variance reaches this tolerance specified, the system issues a warning message during entry of the goods receipt. However, you can still post the goods receipt. The buyer receives a message pointing out the discrepancy.
Activities
Assume you ordered a material in pieces (100 pieces), but the vendor calculates quantities in kilograms (because the material contains precious metals, for example). One piece weighs 4 kg and 1 kg costs $10 (currency USD). The total value of the ordered goods is therefore $4000.
When the goods arrive, they are counted and weighed at the goods receiving point. This process reveals that each piece weighs 4.4 kg. You post the goods receipt in the system (see Entering a Goods Receipt for a Purchase Order ).
As an order price quantity, the system proposes the entered goods receipt quantity, converted with the conversion factor specified in the purchase order. In the example, the system proposes 400 kg for the 100 pieces.
Check the proposed quantity in the order price unit and correct it if the measured quantity differs from it. In the example, you would change the 400 kg to 440 kg. This corresponds to a variance of 10 % in the order price quantity.
Results of the Goods Receipt Posting
The delivered quantity is updated in the purchase order in both units of measure, and the value of the goods receipt (in this case, $4400) is recalculated on the basis of the correction. This is evident in the statistical data of the purchase order item.
See also: