Reconciling Purchase Orders to Invoices

After you enter all your payable invoices, use the A/P Entry window to reconcile the invoices to purchase orders. Reconciling your invoices to your purchase orders gives you the opportunity to compare the information, most specifically the amount payable, between the orders and the invoices, before approving the invoice for payment. Typically, you use the default view in this window to reconcile purchase orders.

Note: After you reconcile a purchase order, you cannot add a freight vendor or bill of lading.

If the vendor for a purchase order is changed through purchase order entry while you have the reconciled payable open in A/P Entry, you cannot save your payable updates.

You cannot reconcile a purchase order for an incomplete shipment.

You can use the A/P Entry window in one of the following modes. To switch between the modes, select QuickMode from the Options menu.

Use the Post A/P Entry Freight To Sales Order G/L Branch control maintenance record to post account payable freight to a sales order general ledger branch respecting the current control maintenance records.

If you use Eclipse Job Management, enter the receiving information for the invoices for jobs within the Job Management application.

 To reconcile a purchase order to an invoice:

  1. From the A/P menu, select A/P Entry to display the A/P Entry window.

  1. At the A/P Entry prompt, Closedcomplete the fields for the payable and click OK:

    Field

    Description

    Post Date

    The system populates this field with the current date on which to post the payables to the general ledger. You can change this date by entering any date within the open payables period.

    If you want your aging reports to show true aging from the vendor's invoice date, enter that date in this field.

    A/P Branch

    Enter the branch paying the invoice. This branch does not have to correspond to the branch that received the goods.

    Batch ID

    Enter the batch ID number to which this payable belongs if your company enters payables in batches and you want to run reports by batch. The batch ID is available as a selector on a variety of payables reports. (Optional)

    Vendor

    Enter the vendor from whom the invoice was received. If you do not remember the complete vendor's name, type one of the following to display a list you can select from:

    • All or part of the vendor's name.

    • The vendor's system-assigned ID number, preceded by a period.

    • The vendor's P/O number. If you enter a P/O number and an internal note is associated with the order, and the Display P/O Internal Notes In A/P Entrycontrol maintenance record is set to Yes, the note displays when you enter the P/O number.

      If you have an order with multiple generations, the system displays a list of vendors from which you can select both active and inactive vendors.

    Note: You need to set Display Customers/Vendors Who Are Inactive At A Branchcontrol maintenance record and several authorization keys to have access to inactive vendors.

  1. At the prompt, select Open Invoices.

  2. In the Invoice Date field, enter the date on the invoice received from the vendor.

The system reconciles the invoice to the purchase order only after you enter an invoice date.

In the upper portion of the A/P Entry window, the system displays all the information related to the invoice that you want to reconcile. In the lower portion of the window, click the Purchase Orders tab to display all the open purchase orders for the vendor that you have selected, with the Closedcorresponding information:

Column

Description

Br

The branch associated with the vendor.

P/O #

The open purchase order number associated with the vendor. If the purchase order is part of a rebate, the system displays a dollar sign:

Applied

If selected, indicates that money has been applied to an invoice.

Rec Date

The date the purchase order was received.

Frt

Indicates whether or not the vendor is freight allowed.

  • Y - Indicates that the vendor pays the freight.

  • N - Indicates that the vendor bills for freight.

Freight

The freight amount on the purchase order. If this purchase order was shipped by a freight vendor such as UPS and the freight charges are on the freight vendor's bill of lading, then *BOL* displays in this field.

Note: In A/P Entry, based on the freight setting for a vendor, if a user enters a freight amount on a purchase order for a vendor and this field is flagged, the system displays a warning message. Freight terms for vendors are set up in the Vendor Freight Termscontrol maintenance record. For more information, see Defining Vendor Freight Terms.

P/O Total

The total amount due on the purchase order.

  1. Select the check box in the Applied column for purchase order you want to reconcile.

Note: If numerous purchase orders exist, you can locate a specific order at any time by typing all or part of the order number at the current cursor position in the P/O # field. The system places the cursor at the order and selects it for reconciliation.

If there is a rebate on the purchase order, the system displays a dollar sign icon next to the P/O number. If the variance for the purchase order is within acceptable limits, the system displays an asterisk and a message: *Within Over/Short Variance. To see the window, Closedclick here.

Note: The over/short variance may display on any purchase order whether or not it has a rebate.

  1. If you have the Post A/P Entry Freight To Sales Order G/L Branch control maintenance record set and you select more than one payable to apply, the system prompts you to select the G/L account to which to post the amount.

  2. After you reconcile invoices to purchase orders, you must post the payable for the check to process for payment. For more information, see Posting Payables.

See Also:

A/P Entry Overview

Automatically Approving Invoices with Purchase Order Variances