Converting a Purchase Order into an Accounts Payable Entry

Last modified 07:53, 24 Apr 2017

Overview

This section details the steps you need to take to convert a Purchase Order into an Accounts Payable.

Converting a Purchase Order into an Accounts Payable Entry

Effectively, the Purchase Order is a statement of intent to make a payment.  In order to actually make the payment, you must convert the Purchase Order into an invoice, which also creates an Accounts Payable transaction.

You can do this in one of two ways:

  • Double-click an existing Purchase Order in the Purchase Order Register.
  • Create an invoice directly from the Purchase Order Listing screen.

In this example, we will use the latter option.

1.    Select an existing Purchase Order in the Purchase Order Listing screen by clicking the checkbox against the relevant Purchase Order.

File:test/insolvency/120_10+Accounts/110_Purchase+Orders/030_Converting+a+Purchase+Order+into+an+Accounts+Payable+Entry/AP1.png

2.    You will see that the column ‘Invoice Now’ is completed with the value of the Purchase Order.  Additionally, the centre panel lists the selected Purchase Orders.  If more than one is selected, and a running total is displayed above the ‘Invoice Now’ button.

File:test/insolvency/120_10+Accounts/110_Purchase+Orders/030_Converting+a+Purchase+Order+into+an+Accounts+Payable+Entry/AP2.png

3.    Click [Invoice Now] to create the relevant Accounts Payable entries.  You will receive a “Confirm Action” warning.  Click [OK].  The Purchase Order is removed from the Purchase Order Register screen.

Note

As the Purchase Order is now effectively closed, you may still review the Purchase Order by clicking on ‘All Closed Purchase Orders’ or ‘All Purchase Orders’ as appropriate.

4.    To review the Accounts Payable transaction, go to Transactions > Accounts Payable > Accounts Payable Listing.

File:test/insolvency/120_10+Accounts/110_Purchase+Orders/030_Converting+a+Purchase+Order+into+an+Accounts+Payable+Entry/AP3.png

The following screen is shown:

File:test/insolvency/120_10+Accounts/110_Purchase+Orders/030_Converting+a+Purchase+Order+into+an+Accounts+Payable+Entry/AP4.png

5.    Select an existing Account Payable in the Accounts Payable Register by clicking the checkbox against the relevant Account Payable.

Note

If the EFT Checkbox is selected, only those Accounts Payable for suppliers with valid bank details will be able to be selected.

File:test/insolvency/120_10+Accounts/110_Purchase+Orders/030_Converting+a+Purchase+Order+into+an+Accounts+Payable+Entry/AP5.png

6.    You will see that the column ‘Pay Now’ is completed with the value of the Account Payable.  Additionally, the centre panel lists the selected Accounts Payable, if more than one is selected, and a running total is displayed above the ‘Pay Now’ button.

File:test/insolvency/120_10+Accounts/110_Purchase+Orders/030_Converting+a+Purchase+Order+into+an+Accounts+Payable+Entry/AP6.png

Note

The default bank account for the job is automatically selected.  However, this may be changed at this stage if required.

Note

Multiple Accounts Payable may be selected from this screen.

7.    Click [Pay Now] to create the payment entries.  You will receive a “Confirm Action” warning.  Click [OK].

8.    The following confirmatory dialog is shown:

File:test/insolvency/120_10+Accounts/110_Purchase+Orders/030_Converting+a+Purchase+Order+into+an+Accounts+Payable+Entry/AP7.png

The transaction is now shown on the job accounts as a debit against the bank account and a credit against the relevant nominal account (in this case, Courier costs).

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