How to complete a backordered purchase order
Sage MAS 90 ERP
Sage MAS 200 ERP
Sage MAS 200 ERP – SQL Server Edition
Application: Purchase Order
Version Reported: 3.71. Should apply to versions through 4.3.
How to complete a backordered purchase order.
To ensure that Purchase Order is set up correctly, perform the following:
- Expand Modules, Purchase Order, Setup, and double-click Purchase Order Options.
- Select the Post Accounts Payable Invoices check box.
Note: For a purchase order to have a completed status, the ordered quantity for each line must equal the received quantity, which must equal the invoiced quantity.
To determine why the ordered quantity does not match the received or invoiced quantities, perform the following:
- Expand Modules, Purchase Order, Period End, and double-click Purchases Clearing Reports.
- Select the Purchases Clearing in Open PO Format option.
- Click Proceed.
- Click Print.
- Review the report and note the lines where ordered quantity, received quantity, and invoiced quantity do not match.
The Daily Receipt Registers/Update process compares the lines for all purchase orders. When ordered quantity equals received quantity, and received quantity equals invoiced quantity, the purchase order will complete.
Below are some sample scenarios:
- Ordered = 10
- Received = 8
- Invoiced = 8
- If the remaining two items are received, process a receipt of goods with invoice number for a quantity of 2.
- If the remaining two items are not received, change the ordered quantity to 8 in Purchase Order Entry. Once all quantities match, and the order is accepted in PO entry, the order is completed.
- Ordered = 10
- Received = 10
- Invoiced = 0
In this example, the invoice was entered directly in Accounts Payable. A GL entry that debits Inventory and credits Purchases Clearing was made when the receipt of goods was updated, so there is a credit amount in the Purchases Clearing Account.
- Expand Modules, Purchase Order, Setup, and double-click Purchase Order Options. Clear the Post Accounts Payable Invoices check box. The invoiced quantity field is now ignored.
- In Purchase Order Entry, change the ordered quantity to 11. Click OK to accept the line. Change the ordered quantity back to 10. Click OK to accept the order. The order is completed.
- Before entering or updating further receipts, expand Modules, Purchase Order, Setup, and double-click Purchase Order Options. Select the Post Accounts Payable Invoices check box.
Note: To balance the purchases clearing account, debit the purchases clearing account, and credit the A/P expense account that the A/P invoice debited.
- As an alternative, process a receipt of invoice for 10 items. Use the same A/P invoice number with -A appended. In A/P, adjust the newly created invoice back out against the A/P expense account that the original invoice debited. This debits Inventory and credits A/P.
- Ordered = 10
- Received = 12
- Invoiced = 12
- If the order was over received, process a return of goods with invoice number for a quantity of 2. Use the same A/P invoice number with -A appended.
- If the quantity of 12 is accurate, change the ordered quantity to 12. Accept the order. The order is completed.
Notes and exceptions:
- Creating a purchase order does not create a G/L entry. The Purchases Clearing account becomes relevant only when a receipt of goods is processed without an invoice.
- A completed PO remains in Purchase Order Entry until the number of days to retain completed purchase orders, established in Purchase Order Setup, is exceeded, and a period end processing is performed.
- The Automatically Close Partially Received POs setting allows a percentage variance between the quantity ordered and received or invoiced. If the variance is set at 10%, 10 items were ordered, and 9 items received and invoiced, the PO will complete.
- The Purge Completed POs option in Period End Processing removes purchase orders from the PO1/2 files based on the setting for number of days to retain completed POs established in Purchase Order Setup.
- The Purge Obsolete POs option in Period End Processing uses the Order Date from the Header tab of Purchase Order Entry, as well as the Last PO and Last Invoice date on the Totals tab. All dates must be older than the specified purge date. A blank date is OK. This function purges all open or completed purchase orders, but not backordered purchase orders. Make a G/L journal entry to adjust the Purchases Clearing account for those POs where the received quantity does not match the invoiced quantity.