Goods and Services Receipt: Items Section

In this section, you can add and define items that you will receive.
Items section comprises two main tabs, the Goods tab, and the Services tab.
Under the Goods tab, you can add one or multiple goods (items of the item types Inventory, Fixed assets or Non-inventory) and enter information about them. Also, you have to specify shipment terms for those goods and select a warehouse from which the purchased goods will be shipped. To define shipment terms and provide warehouse information for quoted goods, you have to fill in the following fields:
 

Field

Used for

Warehouse

Select a warehouse from the list of warehouses where you intend to store purchased goods.

  • The warehouse is provided automatically once you select a purchasing manager being retrieved from the manager's employee record created in the Employee directory. It is a warehouse set as a default warehouse to which the manager (an employee who performs duties of a sales or purchasing manager) allocates purchased goods. If no specific warehouse is assigned to the selected purchasing manager or no purchasing manager has been specified in the document, the default warehouse defined in My company settings will be provided in this field when you save the document. Still, you can select an alternative warehouse instead of one that is assigned to the purchasing manager if necessary.
  • It is a required field if at least one item has been quoted. In this case, if you delete this auto-completed warehouse and do not select an alternative one, you will not be able to save the document. 
  • If multiple warehouses are not allowed in the system (Multiple warehouses option is turned off in My company settings), the Warehouse field will not be displayed on the form. All reservations or reduction of the in-stock quantity of goods will take place for the default warehouse selected in My company settings. For more details about defining inventory management settings, see My Company Settings: Preferences Tab.

Incoterms

Select the Incoterms which are relevant to your business situation. The selected Incoterms will be copied to a purchase invoice based on this goods and services receipt.

  • Incoterms that are usually used for the given vendor are provided automatically once you select the vendor being retrieved from the vendor record created in the Company directory. However, you can change the auto-completed Incoterms if necessary. 

Destination

City to which goods have to be transported. The selected destination city will be copied to the purchase invoice created based on this goods and services receipt. 

  • Destination to which goods are usually delivered by the given vendor is provided automatically once you select the vendor being retrieved from the vendor record created in the Company directory. However, you can change the auto-completed destination if necessary.

Method of delivery

Select a method of transporting goods by your vendor from the list of delivery methods added to the system or create a new method of delivery. The selected method of delivery will be copied to the purchase invoice created based on this goods and services receipt.

  • Method of delivery that is usually used by the given vendor is provided automatically once you select the vendor being retrieved from the vendor record created in the Company directory. However, you can change it if necessary.

To add a service or services, go to the Services tab, add a new service (items of the item types Service) and enter details about it. No warehouse or shipment terms have to be selected for services, as they are not subject to inventory management and are rendered, not shipped. Thus, the mentioned above fields are absent under the Services tab.

You add both goods and services as a line item.

Goods (pic)

Displays/shows the total number of line items added under the Goods tab.

 

Services (pic)

Displays/shows the total number of line items added under the Services tab.


The line item is a line structure that contains an item and item details. The line item is comprised of a number of fields, such as quantity, price, net amount, and so on.
 
Line item fields are almost identical for goods and services, except for some fields present for goods are absent for services.
 
To add a new line item, click the +Add new button above the table used for listing added line items.
 
If you add a line item, you have to fill in all required fields of this line item to be able to save the document. If you fail to fill in all required fields, you can also delete the line item to be able to save the document.

 

Line Item Fields
 

Field

Used for

Good/Service

Select a purchase item (good or service) from the list of previously created items or create a new one.

If you select an item from the list, certain item details will be provided automatically as the system will retrieve the relevant data from the respective item record, a base price list for the item and other related documents.

  • It is a required field. If you do not select an item, you will not be able to save the document.

Unit

A unit of measurement, whether it is a piece, a kilogram or a liter, etc.

  • A base unit of measurement specified for the item is provided automatically.
  • If several units of measurement are defined for the item forming the item's set of measurement units, you can select a unit from the set that is most suitable in a particular case. However, this unit will be used only for displaying quantities in the document, all inventory and accounting transactions will use the base unit of measurement into which the selected alternative unit will be converted according to the specified conversion ratio.
  • If you mistakenly select a unit that does not belong to the set of measurement units specified for the item, this unit will be automatically replaced with the base unit. 
  • It is a required field. If you delete the unit and do not select an alternative one from the set, you will not be able to save the document. 

Available

The total quantity of the item that is available for sale. It is the number you currently have in stock and the quantity of the item you expect to receive based on an open purchase order. The quantity that has been previously ordered or reserved is excluded from the total quantity available for sale.

  • This quantity is provided automatically and you cannot override it.
  • If you select an alternative measurement unit for the item, the total quantity available for sale will be automatically updated. 
  • The field is absent for services.

Quantity

A number of items you want to receive.

  • The quantity is defined for the selected unit of measurement.
  • Quantity to be received can exceed the number of items available for sale if you allow negative balances or sale of reserved items in My company settings.

Price

The price for one item. The price is defined for the selected unit of measurement.

  • The price is retrieved from one of purchase quotation previously received from the selected vendor containing the most recent item price in the currency of the given receipt document. However, you can change this price if necessary.
  • The price is either VAT inclusive or VAT exclusive depending on whether the Price includes VAT option is turned on or turned off. When you activate or deactivate this option, the price is recalculated.  

VAT

Select a VAT rate that is set by the vendor for the chosen item.

VAT rates are retrieved from the VAT rate directory. Depending on the selected item, the standard rate, reduced rate or an exempt rate is suggested automatically if you purchase goods/services within the country of your registration (domestic acquisition). If you purchase goods/services from VAT-registered businesses in other EU and non-EU countries, the export rate is automatically selected. If your vendor is not registered as a VAT payer, the No VAT type is selected. However, you can change any of the autocompleted rates if necessary.

  • It is a required field. If you delete the autocompleted rate and do not select an alternative one, you will not be able to save the document.

Net amount

It is the computed field.

Net amount - the total price for the goods or services excluding VAT charges.

  • If the price for one item includes VAT, the net amount is calculated in the following way:

Total amount / 1 + VAT rate (percentage)

  • If the price for one item is VAT exclusive, the calculations are the following: 

Price x Quantity

VAT amount

It is the computed field.

VAT amount - VAT contained in the total amount which is inclusive of VAT.

  • If the price for one item is VAT exclusive, the calculations are the following:

Net amount x (VAT rate / 100 %)

  • If the price for one item includes VAT, the VAT amount is calculated in the following way: 

Total amount - Net amount 

Total amount

It is the computed field.

Total amount - the total amount of line item goods or services in the specified currency including VAT.

  • If the price for one item includes VAT, the total amount is calculated in the following way:

Price for one item including VAT x Quantity

  • If the price for one item is VAT exclusive, the calculations are the following:

Net amount + VAT amount

Note: Although net amount, VAT amount and total amount are computed automatically based on the price and quantity indicated as well as on the selected VAT rate, you can override the computed values triggering the update of other values.

Advanced line item fields

Not all line item fields are displayed by default. To enable such fields, you have to turn on the extended mode for line item by clicking the More button above the list of items.

On enabling the extended mode, the following fields appear:

Field

Used for

Inventory Account

The field displays an inventory account in which the cost of the item to be received is recorded. The account will be debited with the cost of the item. The account is provided automatically based on an inventory account assigned to the item being retrieved from the item record created in the Item directory.

  • The field is unavailable for services.
  • It is a required field. If you delete the autocompleted account and do not select an alternative account of the same type, you will not be able to save the document.

Expense account

Displays an expense account to be credited with the cost of the item to be received that is recognized as an expense. The expense account is provided automatically being retrieved from the item record created in the Item directory.

If the receipt document is issued by a vendor for whom an open purchase invoice (that was not used as a receipt) is recorded in the system, the cost of the item will be credited to the transit account, not to the expense account.

  • The field is unavailable for services.
  • It is a required field. If you delete the autocompleted account and do not select an alternative account of the same type, you will not be able to save the document.

In stock

The total quantity of the item stored in the selected warehouse as of the document date.

  • If you select an alternative measurement unit for the item, the total in stock quantity will be automatically updated.
  • The field is unavailable for editing, you can only view the indicated amount being retrieved from the Inventory journal.
  • The field is absent for services.

Expected

Displays the quantity of the item that is expected to be received from vendors in the future based on open purchase orders.

  • The field is uneditable, you can only view the indicated amount being retrieved from the open purchase orders.
  • If you select an alternative measurement unit for the item, the expected quantity will be automatically updated.
  • The field is absent for services.

Reserved

Displays the quantity of the item reserved by customers. The reserved quantity is deducted from the quantity of the item available for sale.

  • The field is uneditable, you can only view the indicated amount being retrieved from the open sales orders.
  • If you select an alternative measurement unit for the item, the reserved quantity will be automatically updated.
  • The field is absent for services.

Discount %

Discount rate. A percent of an original price by which the item is discounted.

  • If you change the discount rate, values in the fields Discount amount, Net amount, VAT amount and Total amount will be recalculated and updated.

Discount amount

Amount that is taken off of the item price. It is calculated according to the specified discount rate.

  • You can enter the discount amount manually. Then, values in the fields Discount rate, Net amount, VAT amount and Total amount will be automatically recalculated and updated. 

VAT rate, %

The rate of VAT in percents.

  • The VAT rate specified by the given vendor is provided automatically once you select the vendor. However, you can change it if necessary. 
  • If you change the VAT rate, values in the fields Discount amount, Net amount, VAT amount and Total amount will be recalculated and updated.


If you want to turn off the extended mode, click the Less button.

Note: After turning off the extended mode, advanced item details will persist.

You are able to distribute direct costs of certain services on the number of goods by turning on the Increase direct costs option on Services tab.

When turned on, it will add a Direct costs tab to the Tabs Section.

Direct costs are amounts that can be easily traced to a particular product, good or service, and fully distributed on the price of goods or services. Those might be direct materials, direct labor or direct expenses.

You may fill in the tab with line items that you want to distribute the costs on either manually or by using the Consignment field.

To fill the list of line items manually, click the +Add new button for each new line item that you want to add.

To fill the list of line items using the Consignment field:

  1. In the Consignment field, choose one of the following types of documents: Goods and services receipt, Purchase invoice (only if it is marked as don't use as goods receipt).
  1. In the same field choose the particular document by its name and numbering series.

After choosing the general type of the document, choose the particular one (by its name and numbering series) that contains the list of particular goods that you want to distribute the costs of service on.

  1. Click Fill from consignment button.


Fields of Direct costs tab

Field

Used for

Good

Select goods for cost distribution.

If you fill in the list of line items manually, you have to select the line item from the list of previously created line items or create a new one.

If you fill the list of line items from the Consignment field above, the field will be filled in automatically.

  • It is a required field. If you delete the line item and do not select an alternative one, you will not be able to save the document. 

Unit

A unit of measurement, whether it is a piece, a kilogram or a liter, etc.

The unit is provided automatically based on the base unit of measurement assigned to the item being retrieved from the item record created in the Item directory.

  • It is a required field. If you delete the unit and do not select an alternative one, you will not be able to save the document.

Warehouse

Select a warehouse where you intend to store goods for cost distribution.

  • It is a required field. If you delete the warehouse and do not select an alternative one, you will not be able to save the document.

Warehouse section

Specify a warehouse section in the selected warehouse.

  • It is a required field. If you delete the warehouse section and do not select an alternative one, you will not be able to save the document.

Vendor

Choose a vendor from whom you have purchased goods.

Consignment

Select the document by its name and numbering series, where goods for cost distribution are accounted to.

If you fill in the list of line items manually, you have to manually fill this field for each line item.

If you fill the list of line items from the Consignment field above, the field in the list will be filled in automatically.

  • It is a required field. If you delete the consignment and do not select an alternative one, you will not be able to save the document.

Quantity

Quantity of the line item goods.

If you fill in the list of line items manually, you will have to type in the quantity for each individual item.

If you fill in the list of line items from Consignment, values for this field will be filled in automatically.

Net amount

Cost of the line item good.

If you fill in the list of line items manually, you will have to type in the amount for each individual item.

If you fill in the list of line items from Consignment, values for this field will be filled in automatically.

Direct costs amount

Amount of direct costs added to each line item due to service expense distribution.

Field retrieves data from the Total amount field in the list of line items of the Services tab.


After you have compiled the list of line items, you have to choose the approach for expenses distribution in the Type of expenses distribution field.

It is a required field. If a type is not selected, you will not be able to save the document/record.

You might choose one of the following types:

Type of expenses distribution

Used to

By amounts

Use this option to distribute expenses on the goods in the list of line items proportionally to their amounts, e.g. the bigger the amount, the more expenses will be distributed on it.

By quantity

Use this option to distribute expenses on the goods in the list of line items proportionally to their quantity, e.g. the more pieces of the good is listed, the more expenses will be distributed on it.


After you have chosen the type of expenses distribution and compiled a list of goods to distribute the expenses on, click the Distribute expenses button.

Amount of expenses from the Direct costs amount field will be distributed among chosen goods according to the set type of expenses distribution.

You may manually edit the values in the Direct costs amount field for goods in the list of line items, although values in Distributed amount field and Direct costs amount field have to be equal, otherwise, you will not be able to save the document.


More information

Goods and Services Receipt
Goods and Services Receipt: General Area