Is it possible to create a po without requiring it to be received? We have service calls and various other items that we require a po but no necessarily a receipt. In addition, often after a service technician has left the po receipt gets forgotten about. Not to mention the estimated cast can be different.
Curious how others handle are handling similar situations or situation were a po is need but not necessarily a po receipt.
If you aren’t receiving anything why do you need a PO?
@josecgomez A lot of times this is for accounting requirements to forecast future cash outlays. I have tried many times to talk them out of this practice, but to no avail.
@RWB in AP Entry you can invoice and unreceived PO line rather than doing a fake receipt.
EDIT: I was wrong about this. It only allows you to invoice in advance of the receipt. Grrrr
We do POs similar to what you are describing and we still “receive” the item…unsure of a way around it. We would use a non-quantity bearing misc item OR create a part on the fly and set the part class so the costs go to the proper GL account when received.
I have seen bigger companies where they use the “receive” process as their proof that the work was actually done. For example, Pest control… once per month, “The Bug Guy” comes in and sprays the corners for bugs… then an invoice comes in against the PO. Accounting looks for the receiver to match. If the receiver is not there, then they need someone to sign-off on the work. They used the INVOICE as their receiver, and took it to the party in charge to sign off. Then took it to Receiving to receive (separation of duties here). then accounting can enter the invoice and match to receipt. Seems like a lot of work, but, it does force the separation of duties, and verification that work was performed before payment.
It does need to be receipted, then matched off else you’ll just have more and more open POs.
I guess you could have a BAQ to query old ones, and then DMT to close them out.
Or what I do is send an email alert each Monday morning to anybody that has an open, overdue PO open that they raised - prompts people to remember to go resolve it.
Thanks everyone. We generate the po strictly because accounting wants a po but then it is not followed through till the end. I have tried explaining if you generate a po then you need a receipt but the people involved there is always someone dropping the ball. In these cases we are using the po as a work authorization and nothing else. Thanks again for the ideas and suggestions.
Thanks, Rick
If that is the case, then you need to have a policy to create the PO, Print it, and then immediately short close it so that it doesn’t remain open forever.
If you leave them open, then it (in my opinion) is an audit flag waiting to happen.