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Purchase Order Receipt to Inventory

You can use the Receipts window to receive material directly from a supplier to inventory (destination type = inventory).

When you receive material from a supplier directly to inventory, a receipt and delivery transaction are performed in one step.

The accounting entries for the receipt portion of the transaction are as follows:

Account Debit Credit
Receiving Inspection account @ PO cost XX  
      Inventory A/P Accrual account @ PO cost   XX

The accounting entries for the delivery portion of the transaction are as follows:

Account Debit Credit
Organization Material account @ PO cost XX  
      Receiving Inspection account @ PO cost   XX

Material Overhead

If your item has material overhead(s), you earn material overhead on the delivery portion of the transaction. The accounting entries are as follows:

Account Debit Credit
Organization Material Overhead account XX  
      Material Overhead Absorption account   XX

Foreign Currencies

The average cost is recalculated using the transaction value of the purchase price converted to the inventory functional currency times the transaction quantity.

See Also

Delivery From Receiving Inspection to Inventory

Overview of Receipt Accounting

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