Vendor Invoice for Project Purchase Order
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Vendor Invoices represent the final bill received from the Vendor for a Project Purchase Order. In common practice, Vendor Invoices should be entered in a timely fashion upon receipt, even though they may not be due until a later date. The Check can be written later when the bill is actually due.
To record a Vendor Invoice on a Project Purchase Order, select Accounting - Bills & Invoices (Vendor Deposits, Invoices, Expenses). Doing so will display the Vendor Deposits, Invoices, and Operating Expenses Window - New Tab
Click the Add button to display the Vendor Deposit, Invoice, or Expense window.
On the Type menu, select Invoice for a Project PO. Doing so will cause the Vendor Deposit, Invoice, or Expense Window to reconfigure properly for the Vendor Invoice information as shown below
Enter the desired Purchase Order into the Purchase Order Number (PO #) field. To locate the Purchase Order Number using the Project Purchase Order Search Window, click the Search button. Upon entering or selecting the Purchase Order Number, Design Manager will default the Vendor from the Purchase Order.
The Vendor Code may be changed if a different company than the original Purchase Order Vendor is receiving the payment as in the case when paying a separate entity for freight or shipping.
Choose the proper method to pay the invoice in the Pay With menu. The Pay With menu option will default to the first Accounts Payable Payment Type which is most commonly “A Check”. To choose to pay with a Credit Card, select the desired Credit Card from the menu. For more information on using a credit card to pay your Vendor, see Paying a Vendor with a Credit Card. To learn more about creating and using Accounts Payable Payment Types, see Accounts Payable Payment Types and the Company Information Window - A/P Payment Tab.
Enter the Invoice Number (Invoice #) and Invoice Date, as well as the Due Date that is printed on the bill. Each Component that was included on the Purchase Order will be listed on the Purchase Order Components Grid.
Below the grid, the Subtotal of all merchandise, freight, etc. will appear, as well as the total of all Deposits previously recorded for the Purchase Order in the Less Deposit field. Design Manager will calculate the total Amount Due by reducing the Subtotal by the Less Deposit amount.
If the Vendor offers a discount for early payment, and the discount information on the Vendor Window – Defaults Tab was entered, then the Discount amount and number of Days To Take the discount will be displayed. Please note that this will not affect the Amount Due. Only the amount for which the Check will be written will be affected, provided the Invoice is paid before the deadline (payments made with a Credit Card do NOT include this Discounted Amount).
Sometimes the Vendor Invoice will only be for a portion of the original Purchase Order or an increase in the cost occurs. In this case, the cost of the Component(s) need to adjusted or removed. To do so, select the Component on the Purchase Order Components Grid and click the Edit button to the right of the grid. This will open the Vendor Invoice Distribution Window.
Here the costs for the Invoice can be changed as well as entering tracking information for the Purchase Order. Sometimes additional charges such as freight or delivery were not included on the Purchase Order but are included on the bill from the Vendor. Enter these new charges in the appropriate field. Design Manager will automatically create a new Component under the Item to support the additional charge.
There is no need to edit the Purchase Order to include the additional charge! Press OK when any necessary changes have been made.
If the Vendor Invoice is for a single Component on a large Purchase Order, click the Clear button to remove the current costs from all Components on the Purchase Order. Then input the proper cost on the Component for which is now being paid as described above.
Sometimes it may be desirable to spread an additional charge from the Vendor across all Components on the Purchase Order such as a single delivery charge that is not itemized per Component. In such a case, click the Distribute Cost button to display the Distribute Invoice Cost Window whereupon the total cost can be spread across all Components under a variety of conditions. The Distribute Invoice Cost Window is discussed in detail below.
Important: Make sure that the cost of each Component on the Purchase Order Components Grid matches the corresponding entry on the bill. Insure that the Amount Due field matches the amount due of the bill! (unless a discount is applied)
Pay by Hand Check or Wire Transfer:
If paying with a hand written check or a wire transfer/debit card, click on the Hand Check Wire Transfer (Hand Chk Wire Trans) button to enter the check/transfer information. If a check is going to be physically printed on the printer, do not click the Hand Check Wire Transfer Button.
Save Vendor Invoice and Post:
When all of the information appears to be correct for the Vendor Invoice, press OK. The Vendor Invoice will now appear on the New Vendor Payables Grid on the New Tab of the Vendor Deposits, Invoices, and Operating Expenses Window. The Invoice can be edited or removed at this point by clicking the Edit and Delete buttons, respectively. To record the Invoice for the Project Purchase Order, click the Post button.
Additional Vendor Invoices:
Quite commonly, multiple Vendor Invoices for a single Purchase Order will need to be recorded. Here are a few examples of such cases:
Additional Vendor Invoices are recorded in the same manner as recording the first Invoice. Design Manager, however, will now only display costs for merchandise that has not yet been paid. In other words, if a prior Vendor Invoice was recorded for some Components on the Purchase Order, but not others, only those that are not yet purchased will be included in the Invoice total. Costs can be adjusted as necessary on the Vendor Invoice Distribution Window. If a freight or installation bill has been received, all of the costs may already be zero. Only the appropriate freight or installation cost may need to recorded to match the invoice received.
If a Check needs to be printed through Design Manager, skip to the section on Printing Checks below.
A full description of the windows mentioned above are available under the Vendor Deposits, Invoices, and Operating Expenses Window - New Tab, Vendor Invoice Distribution Window, and Distribute Invoice Cost Window later in this chapter.
Accounting: Upon posting a Vendor Invoice for a Project Purchase Order, Design Manager will credit the Accounts Payable Account and debit either Work in Process Account or Cost of Goods Sold depending on the setting of the Bypass WIP option on the Vendor Invoice Distribution Window. If the option is selected, Cost of Goods Sold will be debited. If not, Work in Process will receive the debit. If Cost of Goods Sold will be affected, the exact COGS Account can be determined by the Sales Category of the Item. If WIP will be affected, upon invoicing the Client for the goods and services, the activity will be transferred from Work in Process to the Cost of Goods Sold Account of the Sales Category. The Vendor Invoice will remain on Accounts Payable until a Check or other form of payment is applied to the Invoice. If the Hand Check Wire Transfer button was used, then Design Manager will further debit the Accounts Payable Account and credit the designated Cash Account. If the Vendor Invoice is being paid with a Credit Card, the Credit Card Liability Account, rather than Accounts Payable, will be credited.