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  13. (Accounting) Receive fictitious items...

(Accounting) Receive fictitious items and items with no stock update, with landed costs and cost type Average purchase cost or FIFO

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The following describes the accounting transactions the system creates when the cost price is Average purchase cost or FIFO and:

  • you receive fictitious items to stock. Fictitious items are items with the Fictitious item field set to YES in the Item file.
  • you receive items to stock with no stock update. These are items on a purchase order belonging to an order type with the Update stock on hand field set to NO in the Purchase order type table.

Prerequisites

Quantity received 125
Purchase price 25.35
Landed cost (Insurance) 15%

Created transactions

Transaction type Description Amount
Debit		 Amount
Credit		 Calculation/Result/Additional info
903/917 “Stock value” fictitious items/”Stock value”, no stock update 3644.06  
(Net purchase price * Received quantity) + Total of landed costs

(25.35 * 125) + 475.31 = 3644.06

This transaction increases the “Stock value” by multiplying the net purchase price by the received quantity and adding the total of the landed costs.

Note: Normally you should account transaction types 903 and 917 on their own accounts and also on different accounts from transaction types 901, 902 and 904 in Financials as the stock value in Distribution is not updated for fictitious items and items on purchase orders with no stock update.

Note: The average cost is never recalculated when fictitious items, and items on purchase orders with no stock update, are received.
930 Reception from supplier   3168.75
Net purchase price * Received quantity

25.35 * 125 = 3168.75

This transaction is the purchase value that is normally accounted on a purchase account in Financials.
932 Landed cost – Insurance   475.31
Net purchase price * Received quantity * Landed cost

25.35 * 125 * 0.15 = 475.31

This transaction is the landed cost, in this example calculated by multiplying the net purchase price by the received quantity and the percentage.

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