Purchase Expenses incurred in subsequent periods needs to be added to the concerned Raw Material Ite
Hi Team,
There is a business requirement to add the purchase expenses incurred in subsequent periods to be added to the concerned RM item cost. The organization is a process organization and we are following actual PMAC. The requirement is described below.
Raw Material Purchased and accounted in Jul-16. Quantity is 3240 and value Rs.235447.43. The purchase expense incurred in the same month is Rs.72075.74. The total purchase value for Jul-16 is Rs.307523.17. The expected RM item cost in Jul-16 is Rs.94.91 (307523.17/3240).
Some purchase expenses details for the above purchase have been received in Aug-16 and accounted in Aug-16 for Rs.21899.83. The expected RM Item cost in Aug-16 is Rs.101.67 (307523.17+21899.83/3240).