Tip of the Month for: March 2019
Prepaid Purchase Orders
Purchase Orders can be marked as "Prepaid" for purposes of Accounts Payable.
When you have purchase orders that have to be paid for up-front, such as with a credit card, you can mark them as such to prevent duplicate entry, and therefore duplicate payment, in A/P Invoice Entry.
Purchase orders marked as prepaid will also mark the received items as prepaid, and those items will not accumulate on the "Uninvoiced Receipts Report".
It is necessary to enter an A/P Invoice for the purchase order and mark the P/O as prepaid. These two steps can be done in any order, but keep in mind messages and errors that you might see. If you enter the A/P Invoice first, you will still need to reference the P/O # the Invoice is paying for. You will not have received the items in yet, so any warnings about cost not matching, receipts history not being present, etc, will need to be ignored. If you do not know the vendor's invoice number up-front, you can use the P/O # as the invoice number and then later you can use Invoice/Credit Memo Maintenance and the File pull-down menu, to change the Invoice #.
To mark the P/O as prepaid, use the "Edit Purchase Order Terms" icon button on the header tab of Purchase Order Entry (beside the Terms box). If you have already entered the A/P Invoice, use the invoice #. If you have not, you can enter the P/O # and come back and change the invoice number at any time. If you enter a invalid Invoice #, you will receive a warning message.
The P/O should be marked as Prepaid prior to any Stock Receipts processing. This way, the items can be marked as prepaid and they will not show up on the Uninvoiced Receipts Report.
Inquiries into the receipts details on invoices and purchase orders will also denote the P/O and Invoice were prepaid using a notation of (Ppd).