A purchase order is an unprocessed expense invoice. The purchase order can be processed into an expense invoice rather than reentering the vendor invoice detail. If the vendor invoice contains only a portion of the purchase order, the quantity Received should reflect the amount on the vendor invoice and the quantity Ordered should reflect the amount that was ordered from the vendor. When the expense invoice is processed, a new purchase order will be created using the same purchase order number and containing the balance of the purchase order that has not been processed. An optional receiving screen can be added to EBMS to view the total quantities ordered on the original purchase order.
To process an invoice from a purchase order complete the following steps:
1. Open the purchase order that is associated with the invoice you wish to process. For details on how to open a purchase order, review the View and Edit Purchase Orders section.
2. Enter the invoice number in the Invoice field, overwriting the purchase order number (PO#00000). Note that the purchase order number has been copied to the P.O.# field.
3. Enter the Vendor’s invoice date in the Date field.
4. Verify the Payment type and Terms information.
5. Enter the total of the invoice in the Total field. If the invoice contains all the items within the purchase order and all the prices are identical, the purchase order total will match the invoice total.
6. Enter the amount being received in the Received column for detailed each line of the invoice. If all items on purchase order have been received, select Process > Received all Items from the invoice menu.
7. Verify that all costs match the costs listed on the purchase order. A quick way to verify the entire invoice is to match the P.O. total and the Invoice subtotal.
8. Enter any Freight costs. EBMS is designed to allow freight costs for an invoice to be distributed proportionally over all invoice lines and general ledger accounts. To do this go to Process > Distribute Freight Costs. This feature is useful if you wish to add the shipping charges to the cost of each inventory item.
To complete the invoice, process it by selecting Process > Process from the invoice menu, which converts a P.O. into an invoice. A shortcut can be used as well by pressing the Ctrl and P keys on the keyboard simultaneously.
Most of the invoice information cannot be changed after an invoice is processed. Review the Unprocessing or Voiding Vendor Invoices section for details on how to unprocess an invoice and change its information. The following history and totals are updated when an expense invoice is processed.