How PO Status Affects the GL

Following is an outline of how the general ledger accounts are affected at each stage of the purchase order process.

1.The first thing to look at is the Stock GL Group the stock is linked to.

In this example, the stock code EQUIPMENT is linked to a Stock GL Group called Equipment.

2.Then, go to Tools > Setups > Stock GL Groups > Equipment, to see which GL accounts will be impacted when this stock is used.

3.Purchase Order Status is changed from Booked to Received.

At this point there will be a debit to the temporary stock on hand GL account (Asset 1-XXXX Stock on Hand - POs on Received)and a credit to the temporary creditors GL account. (Liability 2-XXXX Temp Creditors - POs on Received) At this point, stock is available to be used/sold.

4.Finalise the Purchase Order.

When you change the Status of a PO to Finished, this will move the figures from the temporary GL accounts to the actual stock on hand/trade creditors GL accounts, as shown in Tools > Setups >.Accounting > Stock GL Groups for that group. This information can be found via Accounts > Transaction Journal.

Further information

Purchases Security

Debtors Purchase Orders

Expenses at a Glance

Purchases at a Glance

Expenses Tab on POs

How Does Cost of Goods work

Purchases/Expenses Status

Purchase/Expense Order Header

Purchase/Expense Order Footer Tabs

Purchase/Expense Comment Grid

Purchase Order Approval Process

Purchase Order Stock Grid

Purchase Order Reports

Purchase Order List

Purchase/Expense Preview Pane

Purchase List Header

Expense Order Stock Grid

Opening Balance Purchase Order

Add a Negative Expense Order

Add a Purchase Order

Add a Document to an Order

Add an Amount to a PO when Finished at $0

Add an Expense Order

Add Backorder Purchase Order

Add Comments to a Purchase/Expense Order

Add Freight to a Purchase Order

Add Stock to a Purchase Order

Add Vendor Discount

Auto Create a Purchase Order

Create a PO from a Similar PO

Create a PO Template

Create a Purchase Order List

Enter Serial Numbers

Fix Incorrect Pricing after PO Finished

Handle Employee Reimbursements

Handle a Credit for Freight Charged

Link a Job to a Purchase Order

Link Expenses to a Purchase Order

Print a Purchase/Expense Order

Progress Payments on Purchase Orders

Purchase Consignment Stock

Receive Consignment Stock

Receive Stock

Record One Invoice Number on Multiple POs

Record Overseas Purchases, GST, Import Costs

Return to Vendor

Round up Supplier Invoices

Scan Stock into a Purchase Order

Staff Purchases

Unprint Purchase/Expense

Vendor Price Breaks

View or Edit a Purchase/Expense