AP Records-Missing PO’s

You’re working through your Cost to Complete numbers and notice the costs plus committed costs are way over budget. With a little digging, you realize one (or more) of the AP invoices were entered without referencing the original Purchase Order (PO) or Subcontract, so there are remaining committed costs even though you’ve already been billed. Not only that but the record is paid!

There are a couple of ways to handle this in S100C. You could void the payment, then void the AP record, re-create it against the PO, re-save to the original posting period, and then re-pay with the original payment information and posting period. Not our favorite since there’s a lot of room for error here, and if the check paid more than one invoice, when you void it, they all re-open, not to mention the check may have cleared the bank, making even more steps!

We have an alternative that will allow you to keep everything in one posting period and avoid these many steps and potential errors.

Find the original AP record, then use the copy-clear-paste feature to create a new record. This first step will create a reversal of the record that was missing the PO/Subcontract. Create the reversing record, still no PO/Subcontract reference, but for the opposite dollar amount. If the original entry was correctly costed to the job, then in this record, choose a suspense account such as 6199-Suspense Clearing (find something similar in your Chart of Accounts). Important: add ‘REV’ or something similar to the original invoice number to make it unique. Post to a current posting period.

Stay in the 4-2 screen and Paste again (the image is still in your buffer). For this record, we’re going to create a replacement that will tie to the PO/Subcontract. The invoice number should be unique, so add something like ’ADJ’ to the end. Enter/Select the PO/Subcontract which will bring in all the important information. Update quantities/dollars as needed and confirm the dollar amount matches the reversal entry you just made. In the Grid, use the same Suspense clearing account used in the Reversal record. In the Reference# field just below the invoice dates, enter the unique invoice number from the reversal record. In the example above, the original invoice number plus ‘REV.’

Before you Save, confirm the Posting Period is the same as the reversal record for a net of zero to the suspense account. When you Save, there will be a couple of messages:

• The Transaction Date and posting period may not match. Be sure both records, the positive and negative, are to the same account and in the same Posting period.
• The next message will say that the referenced invoice was found, or was not found. If it was found, choose Yes to apply the two records to themselves and clear the AP. If it says it was ‘not’ found, then something is wrong. Choose Cancel and double-check your Invoice number, Reference#, and dollar amounts.

Big picture: The original entry is correct to the job; the integrity of the accounting periods and cash updates are intact; the replacement record references the PO/Subcontract, so your committed costs will be correctly stated! – CMW