Progress Payments on Purchase Orders

There are a number of ways to manage receiving stock and invoices at different times on one purchase order. The following examples suggest three separate payments.

Suggestion 1

▪Leave the original PO on Received status until all invoices have come in. Ensure the stock on the PO has the correct cost.

▪Add Expense Orders for each of the 3 invoices, linked to the Received PO. These will then roll into creditors and will ultimately provide the cost of goods for the original PO.

▪FINISH the original PO at $0.

Suggestion 2

▪Leave the original PO on Received status until all invoices have come in. Ensure the stock on the PO has the correct cost (as far as you know).

▪Make the creditor payments as Prepayments in Creditors, noting the main PO number and relevant Invoice number in the Payment Comment field.

▪When all 3 invoices have come in, amend the Received PO to FINISH, with the 3 invoice numbers in the Vend Inv field and/or Notes field, and apply the prepayment credits against the invoices.

Suggestion 3

▪Leave the original PO on Received status until all invoices have come in. Ensure the stock on the PO has the correct cost (as far as you know).

▪Add Expense Orders for the 3 invoices and pay them as normal in creditors. Do not link these to the original PO.

▪Add a negative expense order against the Creditor for the value of the 3 invoices to create a credit.

▪Finish the original PO at the correct cost and then apply the credit to clear the debt.

Suggestion 4

▪Create an initial purchase order for the full amount.

▪Create a journal stock code called Deposit, for instance..

▪Generate separate purchase orders from the initial one, including the deposit journal stock with the relevant amount. Finalise and pay this purchase order.

▪On the initial purchase order, use the same deposit journal stock, entering the amount in negative to reduce the total by the amount that was paid.

▪Finish the original purchase order when ready.