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Is tax amount is always added to received price when doing po receive?

Discussion in 'Oracle SCM & Manufacturing' started by yingsras, Jun 2, 2015.

  1. yingsras

    yingsras Forum Advisor

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    Hello everyone

    I have an issue that a receive will never take the purchase price, but the costpirce.
    But the

    system adds the Tax amount of 7% to the costprice.


    If you see in my example below

    PO
    Unit Price: 100
    QTY: 20
    PO Amount: 2,000
    Tax(7%): 140
    Approval Amount: 2,140



    Receipt
    Received QTY: 20
    Amount: 2,140



    PO Amount is 2,000 but the received amount is 2,140. I expect that received amount should be the same as PO amount. Am I wrong or not? Is this normal?

    Could you please advise?

    Kind regards
     
  2. yingsras

    yingsras Forum Advisor

    Messages:
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    Location:
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    Hello

    I understand that we receiving PO along with taxes and we cannot say to supplier that we will not pay tax.
    But I don't understand when I check the amount at distributions on Material Transaction

    Here is the sample data of Distributions on my Material Transaction screen:


    PO Amount: 263,144.00
    Tax: 44,734.48
    Total: 307,878.48
    ------------------------------------

    Distributions at Material Transaction

    Finished Goods: 263,144.00
    Purchase Price Variance: 42,445.94
    FG Inventory Material Overheads: 3,157.72
    Raw Material Variance: 2,288.54

    Raw Materials in Receiving and Inspection: -307,878.48
    Landing Cost Overhead (Freight/Duties): -3,157.72

    Finished Goods is 263,144.00 which is equal to PO Amount which I think it is correct.
    But Raw Materials in Receiving and Inspection is 307,878.48 which is PO Amount + Tax Amount which I am not sure if it is correct or not.

    Could you please explain why the Raw Materials in Receiving and Inspection = PO Amount + Tax Amount? Is it wrong or it should be like this?

    Kind regards