Split receipt is created in Microsoft Dynamics GP

Resolution 1

A split receipt is created when the Extended Cost is not equally divisible by the received quantity (Qty Shipped). When a split receipt is created, Microsoft Dynamics GP creates a separate receipt layer so that the total value of the item is equal to the Extended Cost on the purchase receipt. To view the split receipt layers, open Purchase Receipts Inquiry. To open this window, on the Inquiry menu, point to Inventory, and then click Receipts. 

For example, a split receipt is created if you receive a three-pack of item IV5015 when the following conditions are true:

The Extended Cost of the shipment is $10.49.

You entered 3-pack as the Unit of Measure

The base Unit of Measure is Each.

Because Microsoft Dynamics GP cannot equally divide the extended cost ($10.49) by the quantity of three to determine the cost per base unit of measure (Each), two purchase receipt layers that have the same receipt number are created. The two receipt layers are shown in the following table.

Another example shows a larger variance because of the cost on the 2 receipt layers. For example, you enter a purchase receipt for item IV5016 using the base unit of measure of Each for a quantity of 2000. You enter an Extended Cost of $347.08. Because $347.08 is not equally divisible by 2000 (347.08 / 2000 = 0.17354), the receipt layer must be split. The resulting two receipt layers are shown in the following table.

So how come the large discrepancy between the costs? Let’s do the math.

Total Cost divided by quantity (347.08 / 2000 = 0.17354) gives us more than 2 decimals (which is what the item is set up for) so we are going to need to do some rounding.

We cannot round the receipt layer up to $0.18 because then it would be valued too high compared to our Extended Cost of $347.08.

0.18 x 2000 = $360

So we must value them at $0.17.  However valuing all 2000 at that cost understates what we paid for them by $7.08.

0.17 x 2000 = $340

So instead we value all but 1 at $0.17.

0.17 x 1999 = $339.83

Then the remaining cost is distributed to the split quantity of 1.

347.08 – 339.83 = $7.25

In the end the 2 receipts layers now have the correct total value.

$339.83 + $7.25 = $347.08

When you sell the items, the items are removed from inventory according to the valuation method of the item. The thing to remember is that the 2 receipt layers represent the overall value of the receipt. Each time the 1,999 are sold they are actually just a little bit undervalued since they are being sold at 0.17 rather than .17354. We need the cost of that last receipt layer to be $7.25 to make up the difference.

There is no adjustment that needs to be made to General Ledger to account for this.

One suggestion that would help prevent the splits of receipt layers such as this is using more decimals places for your item currency. In the second example above, if the Currency Decimals on the item was set to 5 we could have created just 1 receipt layer like the following.Depending on the cost and quantity being entered, setting the decimal places to 5 may not prevent every receipt split, however it should cut down on the number of occurrences.

To change the Currency Decimals of an item you have already been using, utilize the Change Decimal Places window. To open that window on the Microsoft Dynamics GP menu, point to Tools, point to Utilities, point to Inventory, and then click Change Decimal Places.



Resolution 2

Starting on Microsoft Dynamics GP version 10.0 SP3, whenever you post a shipment or shipment/invoice that has a landed cost ID associated with it, a split receipt will be created.  This is true even if the Extended Cost on the receipt is equally divisible by the quantity received.

The reason for this is because when the landed cost is invoiced it is possible that the landed cost may not equally divide among the quantity. So as a precaution, we split the receipt at the time of receiving. This allows us to properly allocate the cost of the landed cost between the 2 receipt layers later if needed.