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Open PO Already Invoiced/Paid Under Another Vendor

  • 1.  Open PO Already Invoiced/Paid Under Another Vendor

    Posted 19 days ago
    We have an open PO that was invoiced/paid under a different vendor without matching.  What's the easiest way to close the PO?  I can enter a dummy invoice and then a credit memo, but am wondering if there is a cleaner way.  Inventory is correct as is.

    Colan Witt
    Accounting Manager
    Pheasants Forever, Inc.
    St. Paul MN
    Academy - Online Interactive Learning from Experts

  • 2.  RE: Open PO Already Invoiced/Paid Under Another Vendor

    Posted 19 days ago
    Hi @Colan Witt,

    There are several approaches to closing a PO that either won't ever be invoiced or was invoiced without enter/match (i.e. Payables>>Transactions>>Transaction Entry).  I'll give a high level overview below.

    The first big question is whether or not the PO has been received?  If it has not, then see Option 2 below on how to cancel/close a PO using Edit Purchase Orders.  If it has been received, check out all the options below for what make the most sense to you.

    1.) Dummy Invoice and Credit Memo - you already seem to understand this one so I won't go into detail.

    2.) Edit Purchase Orders  - Be advised this does not always create a Journal Entry to the GL so this likely means your Accrued Purchases Account would need to be adjusted manually. It's important to know the dollar impact of the edit so you can make the proper GL adjustment.
           A.) Go to Payables>>Transactions>>Edit Purchase Orders.
           B.) From ​here, select the PO that you wish to close.  You can change the entire PO status or status of individual lines to Closed.  This will close the PO.
           C.) You may get an option to print a report.   I'd recommend printing it for reference purpose that you forced a PO closed.

    3.) Zero Dollar Invoice - in this method you still create the enter/match invoice which will relieve the Accrued Purchases Account.  You can match the invoice amount to the amount received (to avoid invoice/inventory variances), but you enter the subtotal in the trade discount amount.  This effectively creates a $0.00 invoice which means no credit memo would be needed.  You would, however, have to identify the distribution account you want that "trade discount" amount to hit.  This creates a bit more of an audit trail with visual indicators at the vendor and PO level as to what happened.

    Does that make sense?  If you have questions, just let me know.



    Samantha Higdon ,CPA,CGMA
    Lagom, LLC
    Carmel IN

    Academy - Online Interactive Learning from Experts

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