This chapter contains these topics:
To understand the difference between an informal receiving process and a formal receiving process
To implement a formal receiving process
To determine if purchase receivers are beneficial to your operation
To print purchase receivers
To enter purchase receipts
To apply landed costs to receipts
To understand journal entries that the system generates for formal receipt transactions
To post journal entries for receipt transactions
You can use either an informal or formal receiving process to acquire the goods and services you requested on a purchase order.
You must use the formal receiving process if you purchase items to inventory. You can use the formal or informal receiving process if you purchase items or services to the general ledger.
The informal receiving process is also referred to as a two-way match. The formal receiving process is referred to as a three-way match
An informal receiving process, or two-way match, is one in which you enter receipt information at the same time that you create a voucher. If you create a voucher for 50 pens, the system determines that you received 50 pens.
When you use a two-way match, the system creates a single record in the Purchase Order Receiver table (F43121) when you create a voucher. The system also creates a liability for the purchase at that time.
To accurately account for the receipt of goods, your receiving process is likely to include:
Taking physical receipt of items
Identifying details of the receipt
Recording details of the receipt
The formal receiving process, or three-way match, is one in which you enter details of a receipt before you create the voucher. You create vouchers based on the receipt information. For example, if you enter a receipt for 50 pens, you must create a voucher for 50 pens.
You can use purchase receivers in your three-way match process to manually record the receipt of goods upon delivery. You can then enter that information in the system.
Figure 11-1 Formal Receiving Three-Way Match
You might eliminate the use of purchase receivers if you use terminals to enter receipt information upon delivery or if you use copies of original purchase orders as receiving forms.
When you use a three-way match, the system creates a receipt record in the Purchase Order Receiver table (F43121) when you enter a receipt. The system also creates a liability for the purchase at that time. When you create a voucher, the system creates another record in the Purchase Order Receiver table.
The three-way match process includes the following tasks:
Printing purchase receivers
Entering receipts
Working with journal entries for receipt transactions
Printing receipt information
The following is a summary of the primary files, created/updated and the journal entries made during the receipt process, with the AAI's that drive these journal entries.
Enter Receipt by Purchase Order (P4312)
At Purchase Order Receipt, the following files are created/updated:
F4311 - P.O. Detail record gets closed (Status Codes, received and open quantity and amount fields updated.)
F43121 - P.O. Receiver File, Match Type 1 record created
F4111 - Item Ledger File
OV (receipt record) document type created
F0911 - Account Ledger (OV document type) created
F41021 - Item Location File
On Hand Quantity updated
On P.O. Field updated
F4105 - Item Cost File - Last-in, Average, Purchase
The following journal entries are also created:
Driven by | Debit | Credit |
---|---|---|
AAI 4310 | Inventory | |
AAI 4320 | RNV |
Non- Stock Purchasing: 2- Way Match
Receive and Voucher P.O. (P4314)
At Receipt and Voucher P.O., the following files are created/ updated:
F0411 - Accounts Payable Ledger (PV document type) created
F0911 - Account Ledger (PV document type created)
F43121 - P.O. Receiver File
Match Type 2 record written at Voucher Match
Indicates transaction has been completed in purchasing
F4311 -P.O. Detail record updated
Record gets closed (Status Codes, Received and Open quantity and amount fields are updated)
The following Journal Entries are created:
Driven By | Debit | Credit |
---|---|---|
AAI 4315 or acct. # | Non-Stock Inventory or Expense Account | |
PCAAI | A/P Trade Account |
Non-Stock Purchasing: 3-Way Match
Enter Receipt by Purchase Order (P4312)
At Purchase Order Receipt, the following files are created/ updated:
F4311 - P.O. Detail record updated
Record gets closed (Status Codes, Received and Open quantity and amount fields are updated.)
F43121 - P.O. Receiver File
Match Type 1 record created
F0911 - Account Ledger (OV document type created)
The following Journal entries are created:
Driven By | Debit | Credit |
---|---|---|
AAI 4315 | Non-Stock Inventory or Expense Account | |
AAI 4320 | RNV |