Acute Data Systems

How to Close or Complete an Open Purchase Order in Sage 100

In order to Close or Complete a PO in Sage 100, the Quantity Ordered, Received, and Invoiced must match. Once the quantities match, the Purchase Order will be Completed and it will not appear on the Purchases Clearing Report.

Step 1 - Review the Purchases Clearing Report

To find existing purchase orders not showing complete status, run the Purchases Clearing Report. To run it:

  1. Purchase Order, Period End, Purchases Clearing Report
  2. Select the Purchases Clearing Report, All Types
  3. Click Print or Preview
  4. Review the report and note the lines where ordered quantity, received quantity, and invoiced quantity do not match.

Step 2 - Correct PO Line Items

In the Purchases Clearing Report, you will encounter the following sample scenarios:

Example 1

Ordered = 10
Received = 0
Invoiced = 0

If no transactions are present, you can simply delete the Purchase order

  1. Navigate to Purchase Order, Main, Purchase Order Entry,  Lines tab
  2. Click the magnifying glass at the top of the Purchase Order Entry window and select the Purchase Order
  3. Locate the Delete button in the bottom right-hand corner of the window & press Delete.
  4. A window will populate requesting you to confirm that you want to delete Purchase Order. Press Yes to confirm

Example 2

Ordered = 10
Received = 8
Invoiced = 8

  1. If the remaining two items are received, process a receipt of goods with invoice number for a quantity of 2. This will increase your inventory by 2 and create an Accounts Payable invoice.
  2. If the remaining two items are not received, change the ordered quantity to 8 in Purchase Order Entry. Once all quantities match, and the order is accepted in PO entry, the order is completed.

Example 3

Ordered = 10
Received = 12
Invoiced = 12

  1. If the order was over received, process a return of goods with invoice number for a quantity of 2.
    • You cannot enter in the same AP Invoice Number since it creates a new invoice.
    • We recommend entering the same AP Invoice Number with an “a” at the end. Therefore, the original invoice might be 123 and this new one will be 123a. This method makes it easier to apply invoices together in the future.
    • This will reduce the inventory quantity by 2 and create a negative AP invoice.
  2. If the quantity of 12 is accurate, change the ordered quantity to 12. Accept the order. The order is completed.

Example 4

Ordered = 10
Received = 10
Invoiced = 0

Users may have physically received items in the warehouse, but neglected to enter in the Invoice from the Purchase Order Module. To enter in the Accounts Payable Invoice from the Purchase Order Module after the items are received:

  • Go to Purchase Order module / Main / Receipt of Invoice Entry
  • This will update the Create a new AP Invoice in the AP module

Example 5

Ordered = 10
Received = 0
Invoiced = 10

Users may have entered the Invoice, but did not enter the amount received from the Purchase Order Module. To enter in the Receipt of Goods:

  • Go to Purchase Order module / Main / Receipt of Goods Entry
  • Do not enter in an Invoice Number when processing a Receipt of Goods since it will create an AP Invoice and change the invoiced quantity.
  • This will update the quantity in the Inventory module.

Step 3 - Fix Unusual Line Items if necessary

This step is uncommon, but is necessary in certain circumstances. To Fix Unusual PO Line Items by Turning off Accounts Payable Invoice Integration

There may be times you want to close the Purchase Order without having to change the Inventory Balances or create additional Accounts Payable Invoices. Here are the steps to just complete or close the Purchase Orders by turning off the Post Accounts Payable Invoices Integration. Just be aware that these steps are unusual and should only be done as a last resort.

Warning: By making the following changes, this can cause out of balance issues between the following modules: General Ledger, Accounts Payable, and Purchase Order if not used properly. If this occurs, additional steps will be necessary.

  1. Have all users exit the Purchase Order module until you are done.
  2. Click Purchase Order, Setup, and Purchase Order Options.
  3. Clear the Post Accounts Payable Invoices. The invoiced quantity will now be ignored since the integration between Accounts Payable and Purchase Order is disabled.
  4. Click Purchase Order Entry and Select the PO.
  5. Change the ordered quantity on each line to match the received quantity.
  6. If the ordered quantity = received quantity for all the line items, make a change to the purchase order by adding a /C comment line to the purchase order. A change has to be made to the Purchase Order Lines for the PO to recalculate.
  7. Click Accept Button
  8. The order is completed.
  9. Repeat these steps to the other POs if necessary.
  10. After fixing the issue, turn back the Accounts Payable Invoice Integration.
    • Do not forget to do this step if you disabled it.
    • To do this: Click Purchase Order, Setup, Purchase Order Options.
    • Reselect the Post Accounts Payable Invoices check box.

Additional Information about the PO and Accounts Payable Integration

  1. Click Purchase Order, Main, Purchase Order Options.
  2. Select the Post Accounts Payable Invoices check box.
    • If Post Accounts Payable Invoices is selected, the system compares ordered quantity, received quantity and invoiced quantity to determine purchase order status is complete.
    • If Post Accounts Payable Invoices is cleared, the system only looks at ordered and received quantities to determine purchase order status is complete. This turns off the invoice integration between Accounts Payable and Purchase Order.
  3. It is highly recommended that if you are using the Accounts Payable module, Post Accounts Payable Invoices should always be selected to ensure AP Invoices are created.
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