Example of Procurement Flow using Dual Units of Measure with Multiple Put Away and no Invoice

This example illustrates the accounting entries for a procurement flow with multiple inventory put away and no invoice when using dual units of measure.

Scenario

Let's extend the previous example with one more delivery transaction.

So, we have the purchase order PO1 with the details listed in this table.

Quantity	UOM	Secondary Quantity	Secondary UOM	Unit Price	Pricing UOM	Amount	Invoice Match Option
100	Ea	200	Lbs	$1.000	Lbs	$200.000	Order

And, we have the receiving transactions R1 and R2.

Transaction	Transaction Quantity	Transaction UOM	Secondary Quantity	Secondary UOM
R1	4	Ea	9	Lbs
R2	2	Ea	4.5	Lbs

The put away transactions D1, which same as that in the previous example, and D2, the new transaction, are listed in this table.

Transaction	Transaction Quantity	Transaction UOM	Costing Quantity	Costing UOM
D1	2	Ea	4.5	Lbs
D2	2	Ea	4.5	Lbs

Also, no invoice has been raised.

Analysis

We know the primary UOM is Each and the secondary UOM is Lbs.

For the purchase order PO1 we have this information:

Uninvoiced PO Quantity: 100 Ea

Uninvoiced PO Amount: $100.000

And for the put away transactions D1 and D2 we have this information:

Uninvoiced Delivered Quantity: 4 Ea

Uninvoiced Delivered Amount: $4.000

Therefore, the acquisition amount is $4.00. We arrive at this value by using this equation:

Acquisition Amount = Total Uninvoiced Delivered Quantity * Latest PO Price + Total Invoice Amount

In this case, we have no invoice.

The total delivered quantity in the costing UOM is 9 Lbs. Therefore, the unit cost in the costing UOM is $0.444.

$4.000/9 = $0.444

The entries in Oracle Receipt Accounting are same as the previous example. The corresponding entries created in Oracle Cost Accounting are listed in this table.

Accounting Line Type	Reference Number	Costing Quantity	Costing UOM	Unit Cost	Amount	Document Number
Purchase Order Receipt Adjustment	PO1	4.5	Lbs	-	-	D1
Purchase Order Receipt	PO1	4.5	Lbs	$0.444	$2.000	D2