When a part is received that is purchased in a unit of measure (UOM)different than the stocking UOM, the quantity received in inventory is correct (the purchased UOM is converted to the stocking UOM).
However, the dollars posted are incorrect. The $ posting to inventory (11XX)is calculated by multiplying the purchased qty received by the stocking standard cost, instead of multiplying the stocking quantity received by the stocking standard cost.
The $ posted to the purchase price variance account (7045) is calculated by multiplying the purchased qty received by the difference between the purchase order unit cost divided by the UOM conversion and the stocking standard cost, instead of multiplying the stocking quantity received by the
difference between the purchase order unit cost converted to the stocking unit cost and the stocking standard cost.
The $ posted to the receiving accrual account (3200) is calculated by multiplying the purchased qty received by the purchase order stocking UOM cost, instead of multiplying the stocking quantity received by the stocking standard cost.
However, the dollars posted are incorrect. The $ posting to inventory (11XX)is calculated by multiplying the purchased qty received by the stocking standard cost, instead of multiplying the stocking quantity received by the stocking standard cost.
The $ posted to the purchase price variance account (7045) is calculated by multiplying the purchased qty received by the difference between the purchase order unit cost divided by the UOM conversion and the stocking standard cost, instead of multiplying the stocking quantity received by the
difference between the purchase order unit cost converted to the stocking unit cost and the stocking standard cost.
The $ posted to the receiving accrual account (3200) is calculated by multiplying the purchased qty received by the purchase order stocking UOM cost, instead of multiplying the stocking quantity received by the stocking standard cost.