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  13. (Accounting) Receive goods with...

(Accounting) Receive goods with quality control, landed costs requiring a cost check and cost type FIFO

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The following describes the accounting transactions that are created when you receive goods having a landed cost that requires a cost check and perform quality control of the goods. The cost type is FIFO.

Prerequisites

Quantity received 100
Quantity approved 95
Purchase price 40.00
Landed cost 600
(discrete value)
Average cost in Item file 50.00
Quantity in stock before reception 100

Created transactions

Transaction type Description Amount
Debit		 Amount
Credit		 Calculation/Result/Additional info
The first two transactions are written when the goods are received.

Tip: Normally the 930 transaction type is accounted on a purchase account in Financials. The 940 transaction type should be accounted on a separate account for items in quality control in Financials. This account is credited when the quality control is performed for the goods. See below.
940 In quality control 4000.00  
Net purchase price * Received quantity

40.00 * 100 = 4000.00

This transaction increases (debits) the goods In Quality Control account using the net purchase price multiplied by the received quantity.
930 Reception from supplier   4000.00
Net purchase price * Received quantity

40.00 * 100 = 4000.00

This transaction is the purchase value that is normally credited on a Reception from supplier account in Financials.
The following transactions are created when the quality control note is confirmed.
933 Goods received awaiting costs 4000.00  
Net purchase price * Received quantity

40.00 * 100 = 4000.00

This transaction increases (debits) the Goods received awaiting costs account using the net purchase price multiplied by the received quantity.
940 In quality control   4000.00
Net purchase price * Received quantity

40.00 * 100 = 4000.00

This transaction decreases (credits) the goods In Quality Control account using the net purchase price multiplied by the received quantity.
The following transactions are created when the goods are booked into stock.
901 Stock value 4370.00  
(Net purchase price * Approved quantity) + Total of landed costs for approved quantity

In this example the figures are:
Landed cost/approved: (95/100) * 600 = 570
Stock value: (40.00 * 95) + 570 = 4370.00

This transaction increases the “normal” stock with the approved goods value calculated as the net purchase price multiplied by the approved quantity that is added to the total of the landed costs for the approved quantity.
933 Goods received awaiting costs   4000.00
Net purchase price * Received quantity

40.00 * 100 = 4000.00

This transaction decreases (credits) the Goods received awaiting costs account using the net purchase price multiplied by the received quantity.
932 Landed cost   600.00 This transaction is the landed cost value, in this case a simple discrete value.
941 Non-conforming stock value 230.00  
(Net purchase price * Rejected quantity) + Total of landed costs for rejected quantity

In this example the figures are:
Landed cost/rejected: (5/100) * 600 = 30
Stock value: (40.00 * 5) + 30 = 230.00

This transaction increases the non-conforming stock value. Five pieces are added to the non-conforming stock, since they were rejected. This is calculated as the net purchase price multiplied by the rejected quantity and this is added to the total of the landed costs for the rejected quantity.

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