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Entering Invoices for Closed POs
A client called today with a PO that somebody closed before the payments were posted and asked me what could be done. This firm received inventory directly to the Inventory Asset Account and hits the Received Not Invoiced until the Vendor's Invoice is received.
Unfortunately, closed POs cannot be re-opened. Here is what needs to be done to enter/post the invoice:
- The PO Receipt debited inventory for the materials received and credited Received not Invoiced. It also put an entry in the RNI report but the closing of the PO removed this entry.
- The invoice for the PO from the vendor needs to be entered through Payables Management as a vendor invoice. The distributions need to be adjusted. AP should be OK, the offsetting debit needs to be changed to the Received Not Invoiced account hit when the receiving transaction(s) were recorded. DO NOT POST THE PURCHASE TO INVENTORY AGAIN!
- If the amount of the invoice is not exactly the amount of the receipt(s), then an additional GL transaction is needed to move the difference from the Received Not Invoiced account to a Materials Purchase Price Variance account.
- Make sure that the transactions take out all of the money put into RNI by the receiving transactions being paid by the invoice.