Purchase Order Committed Expense
Harold WS Luxton
Member Posts: 1 ✭
Is there any way of incurring a purchase order as a committment in an expense account? Other than General Journal? Reckon treats a purchase order item as non posting.
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Comments
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Hi Harold,
As you have mentioned they are non posting which means they do not affect expense accounts. However if you use a bill it will affect the expense account. Bills and Cheques affect expense accounts, but purchase orders do not until they are converted into bills.
Regards,
Shane.0 -
Hi Shane,
Further to the question above, how can I create a purchase order using the general journal? Reckon only has the item code and you cant put in GL transactions. I.e if I need to place an order for Travel or repairs and maintenance?
Regards,
Raymond
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Hi Raymond,
This is not possible sorry. General Journals can't be used to create purchase orders, also you can't use items on journals, only accounts, for example income accounts, expense accounts, bank accounts, asset accounts, etc. To place an order you would need to use the purchase order form. When you receive the bill for that order you convert that purchase order to a bill. At that point your accounts will be affected.
I hope that helps.
Regards,
Shane
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