Consumable material

[Former Member]

Material typres UNBW and NLAG ar used as consumable materials.

Both ar non valuated. Then how do we pay the vendor for these materials. They must be valuated at some point.

Also, for the non stock material we do not do GR then how do we justify/calculate the quantity consumed.

Please elaborate.

[Former Member]

Hi,

For consumable materials aslo , you have to do GR.

On GR , the GR/IR account is credited and the Consumption account is debited.Subsequently on IR , the GR/IR account is debited and the Vendor account is credited. For both the material types the consumption statiscs are also updated.

They are non valuated - means the value of these consumable materials is not considered for Financial statements like balance sheet and profit and loss accounts. In way they are treated as worth less except for consumption.

Hope this explanation clarifies your doubt.

Raghuramam

[Former Member]

Can I get more clarifications.

Which accounts are credited/debited and how a vendor is paid.

How do we account for the quantity, and thus value, for a non-stock material for which we dont do GR.

Please elaborate.

Regards

VS

[Former Member]

Hi VS

The defintion of material type UNBW and NLAG as below:

Nonvaluated materials (UNBW)

Nonvaluated materials are managed on a quantity basis, but not by value.

Nonstock materials (NLAG)

Nonstock materials are not held in stock because they are consumed immediately.

These two materials are not considered for value, so as mentioned by Raghuram, when you make GR, the GR/IR account is credited and the Consumption account is debited Iinsted of stock account) and Subsequently on IR , the GR/IR account is debited and the Vendor account is credited. For both the material types the consumption statiscs are also updated.

UNBW materials can be procured like other material types, and on receipt stock will get update, value wont get update.

NLAG type materials should be procured with account assignment and once on receipt material will be consumed.

hope this may help.

regards

Srinivas

[Former Member]

Do not get confused with the term "nonvaluated". It just means that stock value is not updated. You can prepare the GR, but it must be non-valuated. Goods are consumed on receipt itself. Vendor is paid on the basis of IR. Different accounts are debited/credited depending upon material type and price control.

Regards,

SAmeer