Write off an incomplete purchase order
A purchase order is incomplete when there are deliveries outstanding or items pending invoice associated with it. From time to time you may need to close such orders when it is evident the outstanding items are no longer expected. You can write off a single purchase order or all purchase orders up to a certain date.
An order can still be written off if it is marked as on hold. You cannot write off a purchase order when:
- There is a disputed invoice associated with the order, to write off the order you must resolve the disputed invoice.
- There is a sales order linked to the order. The sales order must be cancelled using the Sales Order Processing module.
This process only writes off incomplete order lines. Additional charge lines remain on the purchase order. These cannot be removed after the order is written off, as the order status is changed to Completed.
If you have a pending additional charge on the incomplete order that you also want to write off, we recommend that you delete the additional charge before writing off the order.
When you write off an order that's linked to a purchase requisition, the requisition lines will be cancelled and cannot be reordered. The person who submitted the requisition will see the requisition fulfilment lines as being Cancelled.
You can't write off the order if you have received part of the order, and the remaining items in the order are still linked to multiple requisition lines.
To write off this order, you should:
- Edit the order, then reduce the quantity of the items on the order to match the quantity you've already received.
- Choose to cancel the requisition lines, then amend the requisition fulfilment lines to allocate the quantity you've received to the appropriate requisition.
- The status of the order changing from live to complete.
- For goods pending delivery, the outstanding purchase quantity is deleted. If your system is set to save cancelled orders, the order information is automatically stored.
- For goods pending invoice, nominal adjustments are made to account for the difference between the actual stock received (asset of stock) and that invoiced. The nominal postings can be analysed by cost centre and department if you are using cost centre breakdown.
Write off incomplete purchase orders
Before you write off an incomplete order, check the following:
- Is it linked to a sales order? If so, cancel the sales order before writing off the purchase order.
- Are there additional charges on the purchase order? If so, delete these before writing off the purchase order.
Open: Purchase Order Processing > POP Maintenance > Write Off Incomplete Orders.
- Select the range of orders to write off.
- To write off a single order, select the Single order option and use the list to search for the order.
To write off orders by a date, select the All orders up to a date option and enter the date into the displayed date box.
Note: Check that each order displayed is appropriate to write off.
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Select the nominal account which the write off value will post to.
The write off transaction is posted to this write off account and the stock account set on the stock item.
- Enter some additional text for the nominal posting (optional).
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If you have set a cost centre and / or department on the default nominal account for the supplier, Sage 200 will use this when posting transactions for this supplier. If you want to make sure that the write off value is also posted using the same cost centre and / or department, select Analyse postings by cost centre and department.
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If you select Analyse postings by cost centre and department, the cost centre and department details from the purchase order item line nominal analysis section will be applied to the credit value of the write off posting.
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If you don't select Analyse postings by cost centre and department, the cost centre and department details from the purchase order item line nominal analysis section will not be applied to the credit value of the write off posting.
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- Click Write Off Orders.