Deleting old POs

b2amol

Hi,

I have a few old PO's - (from last financial year or even before). Which have 'Qty Received not invoiced' in them, that makes it impossible to delete them. I cannot reverse the receipts since that function works only for items; my PO's are booked on GL accounts directly. Correcting entries cannot be posted since posting dates have already moved to current period.
Is there some way to get rid of the old PO's from the system?

Amol

Alex_Chow

1. Post the invoice at the cost it should be
2. Reverse the invoice that you made using the G/L account.
3. Run Adjust Cost.

DO NOT DELETE THE POs!!!

David_Singleton

I generally look at this differently.

if the vendor ships you goods which you receive and then the vendor never sends you an invoice. The effect is that you received these goods at zero cost. Therefor my suggestion is to set the cost to zero and post then adjust.

Of course there are also scenarios where I would do it Alex's way, but it really depends on the scenario, and more often than no its a case where the vendor some how forgot to invoice the goods. Of course the proper solution is to call the vendor and ask them to send you an invoice, but I know many companies are reluctant to do that.

garak

b2amol wrote:

Hi,

I have a few old PO's - (from last financial year or even before). Which have 'Qty Received not invoiced' in them, that makes it impossible to delete them. I cannot reverse the receipts since that function works only for items; my PO's are booked on GL accounts directly.
Amol

<-- I understood it so, that he post G/L account and not an item. so he doesn't need to run the Adjust cost.
if it is really so, that you post the Received of an G/L Account, then is nothing happend. Only a Receipt Document is created.
So, to port the invoice for this G/L account, set the direct unit cost to zero if it 0. the result is an G/L Entry with amount 0.

Regards

matpod

To keep an audit trial of what you have done, you could always add an additional line to the PO with a negative quantity and negative amount to contra the balances on the original PO line. Receipt this and then post. The resultant invoice will be for a zero amount.

I would use this method only for keeping a record of what I did, as the previous answer is just as valid and creates less accounting entries.

Alex_Chow

David Singleton wrote:

if the vendor ships you goods which you receive and then the vendor never sends you an invoice. The effect is that you received these goods at zero cost. Therefor my suggestion is to set the cost to zero and post then adjust.

But this will mess up the average cost for the item within that period. COGS will be affected as well.

David_Singleton

Alex Chow wrote:

But this will mess up the average cost for the item within that period. COGS will be affected as well.

Yes I agree, and that's why I say everycase needs to be evaluated according to the business need and not the "Navision" need.

The thing is that if I receive 100 Items at $50.00 and then get another 20 for free, then is the average cost:

a. (100*$50.00 + 20*$50.00) / 120 = $50.00 or
b. (100*$50.00 + 20*$0.00) / 120 = $41.67

In fact I think all the suggestions above are correct depending on the circumstances.

BTW, yes I reallize the OP was asking about GL, but this is all still sort of relevant.

themave

Alex Chow wrote:

David Singleton wrote:

if the vendor ships you goods which you receive and then the vendor never sends you an invoice. The effect is that you received these goods at zero cost. Therefor my suggestion is to set the cost to zero and post then adjust.

But this will mess up the average cost for the item within that period. COGS will be affected as well.

No it won't, you got items for Zero, therefore it should adjust your average cost. But in this case it is a g/l account. We do what was suggested above, make a negative line. with an explanation

Alex_Chow

themave wrote:

No it won't, you got items for Zero, therefore it should adjust your average cost. But in this case it is a g/l account. We do what was suggested above, make a negative line. with an explanation

The original user stated that he invoiced the POs using G/L. So he didn't receive it for zero. The adjusting entries should reflect what the cost the item was suppose to be invoiced at. Or else the margin reports will look very funky.

In addition, when you run adjust cost for the current period, you'll see a huge adjustment to your COGS (depending on the amount of your PO).

b2amol

Thank you guys,

This forum is a great help. In my case, i posted negative quantities with notes & it worked quite well.

regards,

Amol