The situation may occur where there is a purchase order invoice that is to be paid in more than one payment. Following is a method of entering the invoice in Accounts Payable, which allows the system to age each of the five payments based on the true invoice and due dates.
As an example, there is a purchase order invoice for $10,000.00 which is to be paid in five equal payments of $2000.00.
Enter an invoice in A/P Invoice Entry for the invoice amount of $2000.00. This is the invoice for the first installment. Enter the appropriate invoice and due dates for the first installment. Enter the purchase order number on this invoice. Select all of the items on the invoice and post the entire amount for each item. This will post $10,000.00. After all of the items have been invoiced, enter an additional charge of a negative -$8,000.00. The G/L distribution should be the same accounts that were posted to the items on the purchase order. This nets the invoice amount to 2000.00 and backs out $8,000.00 of the G/L distribution. By selecting each item you are updating the Purchase Order and Pending Files.
Enter 4 separate invoices, one for each of the remaining 4 installments. Enter the appropriate invoice and due dates for each installment. The invoice amount is $2,000.00 for each invoice. Do Not enter the purchase order number. Thus this is a non-P.O. invoice. Enter the correct G/L account distribution for each invoice. This re-enters into the G/L, the $8,000.00 that was backed out of the first invoice. This posts the remaining $8,000.00 to the Vendor’s account and Accounts Payable.
Please call La Crosse Management Systems, Inc. if necessary. We appreciate your calls: (608) 784-8400.