Usually, a goods receipt for a purchase order is valuated. How the material is valuated depends on the value calculation used and the postings carried out.
A distinction is made between two ways in which the value of the goods receipt can be calculated:
Goods Receipt Before Invoice Receipt
Generally, you receive the invoice after the goods. Consequently, the value of the delivery is not known at the time of goods receipt. In this case, the value calculation is based on the purchase order. The value of the goods receipt is calculated based on the quantity received and the net order price.
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Value Calculation: Goods Receipt Before Invoice Receipt
Purchase order: |
100 pieces of material A at $10/piece |
Goods receipt: |
70 pieces |
The value of the goods receipt is calculated as follows: |
70 pieces x $10/piece = $700 |
Invoice Receipt Before Goods Receipt
If an invoice has been posted for a purchase order before the goods are received, the value of the delivery is known at the time of goods receipt. In this case, the value calculation is based on the invoice. The value of the goods receipt is calculated based on the quantity received and the invoice price. If the invoice was for only part of the quantity, only the actual quantity invoiced is valuated at the invoice price at goods receipt. The remaining quantity is valuated at the purchase order price.
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Value Calculation: Invoice Receipt Before Goods Receipt
Purchase order: |
100 pieces of material A at $10 |
Invoice: |
50 pieces at $12/piece = $600 |
Goods receipt: |
70 pieces |
The value of the goods receipt is calculated as follows: |
50 pieces x $12/piece + 20 pieces x $10/piece = $800 |
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