[Mary Mallazzo]

Hello
We have a lot of PO’s that are sitting in the status of “received/not invoiced”….it is a very time consuming process to investigate and then clean up/remove these PO’s.
We are wondering if anyone also is experiencing this issue…I have listed a few scenarios that we are experiencing….hoping that perhaps someone has some suggestions /solutions on a better way to process PO’s.  We are also running the Wennsoft job cost plug in:

1. A prepayment, by credit card/check, is applied to a purchase order but an invoice is never received.
2. We have “AP/Misc” charges which include freight, air fare, delivery, cutting, just additional charges that are not known when the PO is made.

a.       Items are received at different times so we get multiple invoices. They do not invoice the full quantity of “AP/Misc” so the PO remains open until these charges are either invoiced/returned.

3. Not all items are invoiced on the PO.

a.       I’m guessing either due to material changes after the PO has been issued

b.       Lost/never received invoices for certain materials.

4. We run into difference in quantity so the quantity orders never gets fully invoiced.

a.       It’s a difference in the amount ordered to the amount received.

b.       The difference in what we order to how they can fill the quantity. We order 170 SQFT of carpet, they can only deliver in quantities of 20.

5. We run into issues where a person pays by credit card, doesn’t enter against the PO and the PO is received, making it to late to enter the payment.
6. A transaction entry invoice was put in instead of a Enter/match invoice entry. The PO can only be returned.
7. An invoice comes in from a different vendor.

a.       Sometimes materials are ordered from an in between company and we receive an invoice from the manufacturer rather than the vendor we placed the order from

Thank you for any suggestions.

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Mary Mallazzo
Fromkin Brothers
Edison NJ
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[Kristen Hosman]

Hi

Below are my suggestions (in red) for your questions.  I’m not familiar with the Wennsoft product so my answers are more just GP related.  I’ve answered what I could…also your issues are not unique to just your company.  These are issues that all AP companies have so hopefully others will chime in as well.  My only advise to you is to check the received/not invoiced smartlist once a week to try to get things cleared up then monthly once you have it pretty cleaned up.  I always made it a goal to have everything entered by month end if I could just so inventory costs were 100% good.  Let me know if you need any more information regarding my suggestions I have given…happy to help!

Curious to know how many invoices you’re processing per week as well.

 

1. A prepayment, by credit card/check, is applied to a purchase order but an invoice is never received.  In this case I would simply use the order confirmation as the invoice.  The order confirmation should have a unique number you could use to enter in as the invoice number; the order number perhaps.  If it isn’t too much work then have the person who placed the order ask for the invoice to be set at the time of order as well.  
2. We have “AP/Misc” charges which include freight, air fare, delivery, cutting, just additional charges that are not known when the PO is made.

a.       Items are received at different times so we get multiple invoices. They do not invoice the full quantity of “AP/Misc” so the PO remains open until these charges are either invoiced/returned.  How are you currently handling this?  By just adding lines to the PO?  Or are you entering the invoices in as transaction entries and just referencing the PO number?

3. Not all items are invoiced on the PO.

a.       I’m guessing either due to material changes after the PO has been issued.  In this case you can just cancel the quantity not received on the PO to get the PO to close once what has been received has been invoiced.

b.       Lost/never received invoices for certain materials.  Hopefully your vendors are sending you monthly statements or reaching out in a timely manner when invoices are now past due…wishful thinking I know.  

4. We run into difference in quantity so the quantity orders never gets fully invoiced.

a.       It’s a difference in the amount ordered to the amount received.  In this case you can just cancel the quantity not received on the PO to get the PO to close once what has been received has been invoiced.

b.       The difference in what we order to how they can fill the quantity. We order 170 SQFT of carpet, they can only deliver in quantities of 20.  Ouch…In this case you can just cancel the quantity not received on the PO to get the PO to close once what has been received has been invoiced.

5. We run into issues where a person pays by credit card, doesn’t enter against the PO and the PO is received, making it to late to enter the payment.  In this case setup a checkbook for the CC with the right distributions and do a check run to that checkbook.  I can provide more details if you’re interested in doing it this way.
6. A transaction entry invoice was put in instead of a Enter/match invoice entry. The PO can only be returned.  You can always do a CM to back out the transaction entry invoice and then enter it in as an enter/match.  You will need to change up the invoice number by maybe adding an ‘A’ at the end of it.  If there is a PO number on the invoice then they should know that it should be entered in as an Enter/Match.
7. An invoice comes in from a different vendor.

a.       Sometimes materials are ordered from an in between company and we receive an invoice from the manufacturer rather than the vendor we placed the order from  Similar to # enter in the right invoice into the enter/match window with the incorrect vendor…then create a CM for that transaction in the transaction entry window.  Then offset the CM with the correct vendor and invoice.  You can use a clearing account on the CM and the correct invoice so they clear each other out with no issues.

??

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Kristen Hosman
Dynamics ERP Consultant
Briware Solutions Inc.
Pine CO
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[Mary Mallazzo]

Kristen
Thank you for you suggestions.  Makes sense to do the clean up more frequently.  I’m sure we will have more questions.

Thanks

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Mary Mallazzo
Fromkin Brothers
Edison NJ
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[Anne Provost]

?Whenever we find that we have entered a PO invoice as a Transaction Entry instead of an Enter/Match PO Invoice, I simply create an Enter/Match Invoice using FIX PO ##### as the invoice number, receive the line item(s) and then enter a trade discount for the amount of the subtotal.  In distributions, I enter the account number(s) used in the Transaction Entry to reverse that entry. 

Hopefully, this makes sense…

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Anne Provost
Chief Financial Officer
TNR Technical, Inc.
Sanford FL
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[Barbara Gavron]

It looks like this is only a small portion of the issue, but just a reminder that starting with GP2015 there is an option on the Payables setup window to “Warn if Vendor has an Existing Purchase Order”. I always recommend that this box be checked.

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Barbara Gavron
Atlantic Beach / Jacksonville FL
904-536-0129
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[Shari Bruno]

?Hi

Our payables are handled from a workflow scenario first. Both PO and non-PO payables get routed to a person who is responsible for the cost center first to verify validity and coding. When the payables is for a PO, that first person is responsible to make any changes to the PO (if needed) before it completes the approval process and comes to AP.

Just the same we still wind up with POs that are not closed and no longer need to be open, so a few weeks before the end of our fiscal year I run a SmartView of all open POs by Buyer ID and send the list to each buyer asking if the PO should be closed. We do not have a high volume of payables (less than 10,000 per year) so following up once a year is fine.

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Shari Bruno
Accounting Operations Manager
Bible League International
Crete, IL
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