Germany Difference in invoiced and received quantity (due to different weighing method)

Joined
Sep 9, 2016
Messages
2
Reaction score
0
Country
Germany
Hello together,

I have a general question on differences between invoiced and received quantity due to different weighing method of supplier and recipient.
How does this have to be treated accounting-wise?
How does this have to be treated calculation-wise?

Example:

Invoice quantity says 100 tons at price of 100 $/ton, so invoice amount is 10000 $
But physically received quantity is 90 tons.

The reason of 10 tons delta is due to different weighing method of supplier & recipient.

Are there IFRS rules on this topic?

Thanks a lot for your support.

Best regards
Heinz
 
Joined
Sep 11, 2015
Messages
24
Reaction score
2
Country
Germany
Hello Heinz,

from my point of view there is no specification in IFRS.

Is it a real difference or probably caused by tara of transport packaging?

Kind regards / Gruß
Bert
 
Joined
Sep 9, 2016
Messages
2
Reaction score
0
Country
Germany
Dear Bert, many thanks for your answer.
I speak mainly about a difference which goes above the tolerance that you have due to different weighing results.
Let's say: the supplier weights 100 tons and writes that also in his invoice at a price of 100 $/T.
At the arrival port of the customer the weighing gives only 90 tons.
Assuming that in the contract a tolerance of 2% is accepted, I am interested in:
a) How to book in the accounting the difference up to the tolerance: So 100 tons according to the invoice, but with the 2% tolerance you may receive only 98 tons (and let's assume that the customer gets also this result with his weighing method).
How to book this delta? Do I book 98 tons (I guess, yes) but I need to pay 100 tons @ 100 $/T (so the price is then in fact not anymore 100$/T, but 100 tons / 98 tons * 100 $/T = 102 $/T?
b) How to book in the accounting the additional delta of 90 tons (if the customer weights 90 tons instead of 100 tons respective versus the 98 tons with the agreed tolerance)? 90 tons @ 100 $/T. And I cut the invoice amount? Or I make a provision for the missing 8 tons @ 100 $/T?
I believe that this problematic is not an exceptional one but very common, but I couldn't find any articles for it.
Any advice would be very much appreciated.
Thanks a lot in advance,
Best regards
Heinz
 

Fidget

VIP Member
Joined
Jan 6, 2013
Messages
754
Reaction score
139
Country
United Kingdom
I have limited experience of this in a company that made bio-diesel and we recorded the weight of the load at source, but invoiced only the load received and signed for at the delivery point. The difference between the two amounts was just written off as a normal wasteage.
 
Joined
Sep 11, 2015
Messages
24
Reaction score
2
Country
Germany
As i understood the situation is a direct delivery from your supplier to your customer with a unusal leakage

purchasing
100 tons for 100$/t

selling
expectation: 100 tons for 100$/t
realization: 90 tons for 100$/t

bookings as example
stock 10.000 $
to account payables 10.000 $

goods-in-transit 10.000 $
to stock 10.000 $

quantity variance 1.000 $
to revenues / accounts receivables 9.000 $
to goods-in-transit 10.000 $

discussion now is only the handling of that 1.000 $ cost of quantity variances, which is an unusual big amount
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top