Valuation of receipts

Give a brief introduction of the term ‘valuation of receipts’?

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Valuation of receipts is the price billed in the invoices through the supplier. Following points must be kept in mind for this function:

-The trade discount is subtracted from the essential price and all other amounts as billed through the supplier are added, such as sales tax, excise duty, octroi duty, and so forth.

-Joint costs might be distributed on the base of the essential price of the material.

-In case of imported material, the cost of the material comprise a basic price, clearing charges, customs duty, transport chares, and so forth.

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