11 Overview to Receipt Processing

This chapter contains these topics:

11.1 Objectives

  • 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

11.2 Overview

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

11.2.1 Informal Receiving Process

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.

11.2.2 Formal Receiving Process

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

Description of Figure 11-1 follows
Description of "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

11.2.3 Files and Journal Entries

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.

Stock Purchase: 3-Way Match

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