is there an issue with receiving material with a zero dollar value purchase order?
have a potential vendor/customer that has sent us some material free of charge so that we can recycle it into our production process
one suggest to receive items as a simply quantity adjustment
should it be entered as a zero dollar purchase order and if so how does this effect the GL/accounting side of the house and valuation of the inventory?
What type of costing method do you use? If you are on using average cost, the receipt at zero dollars would impact the value of the current onhand materials. a quantity adjustment would have the same impact as the receipt.
Mechanically, you can receive the material against a zero dollar PO or just add a pack slip to receipt entry without a PO. Know that the cost of the items at the time of receipt impact your inventory value.
We use lot average costing, each lot has it’s own cost.
You could create a new part number for it, receive it and use in a job. just replace the component material for that particular job.