How to use the Purchase Clearing Report in Sage 100
How to use the Purchase Clearing Report
The Purchase Order, Period End, Purchase Clearing Reports option provides reports to simplify month-end reconciliation of the Purchases Clearing account with the open amounts on purchase orders. The report includes the quantity ordered, received, and invoiced. If these three quantities do not match, the purchase order remains in a Backorder Status until they reconcile.
The Purchases Clearing account, assigned to each product line in Inventory Management, Setup, Product Line Maintenance, is a liability holding account. It reflects inventory received in Receipt of Goods Entry until an invoice is posted in Purchase Order, Main, Receipt of Invoice Entry. This account is credited when goods are received into inventory and can also include allocated landed cost and sales tax. When the applicable invoice is recorded in Receipt of Invoice Entry, the Purchases Clearing account is debited and the corresponding Accounts Payable liability account is credited.
NOTE: If you enter receipts in Inventory Management, Main, Transaction Entry, or if you change the ordered quantity or unit cost after performing Purchase Order, Main, Receipt of Goods Entry or Receipt of Invoice Entry, the total purchases clearing in the Purchases Clearing In Open PO Format Report does not agree with the Purchases Clearing account balance.