Prepaying a Purchase Order

The typical PO flow in Accolent ERP is to create and submit a PO, receive the PO, then create a voucher tied to the PO and PO receipt(s) and then to pay the vendor. Sometimes, this flow could be reversed. For example, a PO could be shipped FOB with the recipient taking ownership prior to the receiving the PO and so, requiring the recipient to pay the vendor for the goods prior to PO Receipt. Accolent ERP can easily accommodate the prepayment of POs prior to receipt. To do this, the automatic matching of the Voucher to the PO Receipt should be turned off; however comments and/or other numbering schemes may be used to assist in the subsequent tie-out.

Create PO

  • Create PO C6687 for Vendor 104.

  • Save PO and Submit PO to the Vendor.

Create Voucher to Prepay the PO

  • Make a voucher for $680 to Vendor 104 to prepay the PO.
  • Select the checkbox to Override the PO and Receipt tracking.
  • The main challenge is in ensuring that the transactions are marked so that the PO, if received in a series of partial receipts, can ultimately be tied-out to the payment made to the vendor.
  • Using comments or a numbering system or any other similar naming device to assist in tie-out is a good idea.
  • Manually record in the comments that this prepays PO C6687, and/or manually enter the Voucher No as Vendor Invoice-PO No.

  • Save the voucher.

Pay the Voucher

  • Pay the voucher (e.g., by manual check in this case).

  • This is the check.

Receive the PO

  • Sometime later receive the PO.
  • It doesn’t matter if the PO is received partially so long as the total of the partial receipts matches the payment made to the vendor.

Recording of the Transactions

  • All the transaction steps, creation and submission of the PO, creation of the voucher, payment of the voucher and receipt of the PO will be recorded exactly the same way they would be if the normal flow was used.
  • Receipt of the PO updates inventory as usual (e.g., I200V-324).

  • GL Posting of voucher- uses vendor’s saved voucher GL allocations.

  • GL Posting of the PO.

  • GL Posting of check.

  • The net result of these transactions is:
        • DR Inventory                                    $680.00
        • CR Cash in Bank                                                $666.40
        •            CR Cash Discounts Taken                        $13.60
  • This is the same result as if the voucher was entered after the PO was received.

 

 

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