PO for Inventory Item with Rate Variance
In this example, you purchase a quantity of 3 of item A, which has a standard cost of $20. Tax is accrued at receipt and is charged at 20%, with 25% of the tax non-recoverable. You are invoiced for 1 delivered item at $30. The matching is saved with a status of Initial, and no usage variances are calculated.
Receipt Postings
Invoice Postings
Again, the debit amounts are calculated as:
Invoice Price * Quantity Invoiced * (% Tax + 100)
Matching Postings
The rate variance posting is calculated as:
Invoice Price – Receipt Price
The recoverable tax is calculated as:
(Invoice Price – Receipt Price) *% Tax * (% Recoverable / 100)
The non-recoverable tax is calculated as:
(Invoice Price – Receipt Price) *% Tax * (% Non-Recoverable / 100)
