Create a Payable from a Purchase Order
- Navigate to Accounting Home and under the Orders and Inventory section, click on Purchase Orders.
- From the Purchase Order List View, select the Purchase Order(s) you wish to generate a Payable for.
- On the Purchase Order page, click the Create Payable button.
- On the Create Payable intermediate screen, the Vendor Account and the Ledger fields will auto-populate. These fields carry over from the Purchase Order.
- The Payable Date field (required) will also auto-populate; however, this field can be edited if needed.
Note: The Payable Date field is auto-populated with the date the Payable is created.
- The Purchase Order Status will default to the status of Open. This is a required field and, if needed, this field can be changed so that users can set the status of their Purchase Orders, as per their business process.
- The Due Date is calculated based on the Issue Date plus Payable Days Due from the Account.
- In the Quantity to Pay column, enter the value you want to create a Payable for.
Note: By selecting a value of 'Yes', all of the Quantity to Pay fields will auto-populate with the Unbilled Quantities. By selecting a value of 'No', the Quantity to Pay fields can be manually populated with the desired quantities.
Note: Any Purchase Order Lines will flow through on the Payables as Payable Lines. On the Payable Line, a relationship exists to the Purchase Order Line. This allows for full traceability from the Payable Line to the Purchase Order Line.
- Click the Create Payable button to proceed.
- A Payable Edit intermediary screen will display. Make any necessary edits and click the Save button to save and be directed to the Payable.
Note: These fields on the Payable will default as follows unless the user overrides them when creating a new Payable:
- Posting Status defaults to Approved.
- Payment Status defaults to Unpaid.
- Currency is carried over from the Purchase Order Currency.
- Payee Reference, an editable required field, references the PO used and date/time stamps when the Payable is created.
- Accounting Period defaults based on the Payable Date.
You will see a Related List of Payable Lines for each Purchase Order Line. This will allow you to see how much has been paid for each Purchase Order Line.
Additional enhancements of this feature are as follows:
- If GL Account Variables 1-4, Project, and Project Task are populated on the Purchase Order Line, these fields will be mapped to the Payable Line.
Accounting for Payables of an Inventoried Product
Purchase Orders are typically associated with Inventoried Products. There are (2) steps in processing these Purchase Orders:
- The Receive Purchase Order process that creates the Purchase Order Inventory Movement (see Receiving/Unreceiving a Purchase Order) for more detail).
- The Payable that records the liability to the vendor for monies owed. It is important to note that when a Payable is created for an inventoried product, the debit portion of the GL transaction will always be to Vouchers Payable. The Vouchers Payable account serves as a temporary suspense account that is offset by the Purchase Order Receive process. Please note: It is a best practice that the Receive Purchase Order be completed prior to the creation of the Payable.
The implications of this are that the Expense GL Account field on the Payable Line from a Payable created from a Purchase Order will always be to the Vouchers Payable GL Account (as defined in Accounting Settings). For a more detailed discussion of the accounting behind this process, please see Debit & Credit Entries Created When Posting.
- A 'Purchase Order Status' field has been added to the Create Payable from the Purchase Order screen so that users can set the status of their Purchase Orders, as per their business process.