fix: include rejected qty in tax (purchase receipt) (backport #53624) (#53972)

Co-authored-by: Mihir Kandoi <kandoimihir@gmail.com>
fix: include rejected qty in tax (purchase receipt) (#53624)

erpnext/controllers/buying_controller.py

@@ -457,7 +457,7 @@ class BuyingController(SubcontractingController):
 						get_conversion_factor(item.item_code, item.uom).get("conversion_factor") or 1.0
 					)
 
-				net_rate = item.base_net_amount
+				net_rate = item.qty * item.base_net_rate
 				if item.sales_incoming_rate:  # for internal transfer
 					net_rate = item.qty * item.sales_incoming_rate
 

erpnext/controllers/taxes_and_totals.py

@@ -164,6 +164,9 @@ class calculate_taxes_and_totals:
 			return
 
 		if not self.discount_amount_applied:
+			bill_for_rejected_quantity_in_purchase_invoice = frappe.get_single_value(
+				"Buying Settings", "bill_for_rejected_quantity_in_purchase_invoice"
+			)
 			for item in self.doc.items:
 				self.doc.round_floats_in(item)
 
@@ -225,7 +228,13 @@ class calculate_taxes_and_totals:
 				elif not item.qty and self.doc.get("is_debit_note"):
 					item.amount = flt(item.rate, item.precision("amount"))
 				else:
-					item.amount = flt(item.rate * item.qty, item.precision("amount"))
+					qty = (
+						(item.qty + item.rejected_qty)
+						if bill_for_rejected_quantity_in_purchase_invoice
+						and self.doc.doctype == "Purchase Receipt"
+						else item.qty
+					)
+					item.amount = flt(item.rate * qty, item.precision("amount"))
 
 				item.net_amount = item.amount
 
@@ -379,9 +388,16 @@ class calculate_taxes_and_totals:
 			self.doc.total
 		) = self.doc.base_total = self.doc.net_total = self.doc.base_net_total = 0.0
 
+		bill_for_rejected_quantity_in_purchase_invoice = frappe.get_single_value(
+			"Buying Settings", "bill_for_rejected_quantity_in_purchase_invoice"
+		)
 		for item in self._items:
 			self.doc.total += item.amount
-			self.doc.total_qty += item.qty
+			self.doc.total_qty += (
+				(item.qty + item.rejected_qty)
+				if bill_for_rejected_quantity_in_purchase_invoice and self.doc.doctype == "Purchase Receipt"
+				else item.qty
+			)
 			self.doc.base_total += item.base_amount
 			self.doc.net_total += item.net_amount
 			self.doc.base_net_total += item.base_net_amount

erpnext/stock/doctype/purchase_receipt/purchase_receipt.py

@@ -561,7 +561,7 @@ class PurchaseReceipt(BuyingController):
 				else flt(item.net_amount, item.precision("net_amount"))
 			)
 
-			outgoing_amount = item.base_net_amount
+			outgoing_amount = item.qty * item.base_net_rate
 			if self.is_internal_transfer() and item.valuation_rate:
 				outgoing_amount = abs(get_stock_value_difference(self.name, item.name, item.from_warehouse))
 				credit_amount = outgoing_amount

erpnext/stock/doctype/purchase_receipt/test_purchase_receipt.py

@@ -4610,7 +4610,7 @@ class TestPurchaseReceipt(ERPNextTestSuite):
 
 		self.assertEqual(srbnb_cost, 1500)
 
-	def test_valuation_rate_for_rejected_materials_withoout_accepted_materials(self):
+	def test_valuation_rate_for_rejected_materials_without_accepted_materials(self):
 		item = make_item("Test Item with Rej Material Valuation WO Accepted", {"is_stock_item": 1})
 		company = "_Test Company with perpetual inventory"
 
@@ -5423,6 +5423,33 @@ class TestPurchaseReceipt(ERPNextTestSuite):
 			self.assertEqual(row.warehouse, "_Test Warehouse 1 - _TC")
 			self.assertEqual(row.incoming_rate, 100)
 
+	def test_bill_for_rejected_quantity_in_purchase_invoice(self):
+		item_code = make_item("Test Rejected Qty", {"is_stock_item": 1}).name
+
+		with self.change_settings("Buying Settings", {"bill_for_rejected_quantity_in_purchase_invoice": 0}):
+			pr = make_purchase_receipt(
+				item_code=item_code,
+				qty=10,
+				rejected_qty=2,
+				rate=10,
+				warehouse="_Test Warehouse - _TC",
+			)
+
+			self.assertEqual(pr.total_qty, 10)
+			self.assertEqual(pr.total, 100)
+
+		with self.change_settings("Buying Settings", {"bill_for_rejected_quantity_in_purchase_invoice": 1}):
+			pr = make_purchase_receipt(
+				item_code=item_code,
+				qty=10,
+				rejected_qty=2,
+				rate=10,
+				warehouse="_Test Warehouse - _TC",
+			)
+
+			self.assertEqual(pr.total_qty, 12)
+			self.assertEqual(pr.total, 120)
+
 
 def prepare_data_for_internal_transfer():
 	from erpnext.accounts.doctype.sales_invoice.test_sales_invoice import create_internal_supplier