There will be occasions when you need to write off purchase orders and returns that are incomplete. For example, you place an order for a delivery which is part delivered and the remaining quantity on order is never delivered.
Orders
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.
When can I write off purchase orders?
You can write off an order even if it is marked as On hold.
If it is linked to a sales order (back-to-back order), then you must cancel the sales order first using Sales Orders > Sales Orders > Amend Order Status.
If there are any additional charges on the purchase order, then you should delete these from the order before writing the order off. Once the purchase order status is Completed, you can't remove additional charges which remain on the order.
What happens when I write off an incomplete purchase order?
- The order status changes from live to Completed.
- For goods pending delivery, the outstanding purchase quantity is deleted.
- For goods pending invoice, nominal adjustments are made to account for the difference between the actual stock received and that invoiced. The nominal postings can be analysed by cost centre and department.
What happens when I write off an order linked to a requisition?
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.
Returns
A purchase return is incomplete when goods are waiting to be despatched to the supplier or items have not been credited.
When can I write off purchase returns?
You can write off a return even if it is marked as On hold.
single purchase return or all returns up to a certain date.
What happens when I write off an incomplete purchase return?
- The return status changes from Live to Completed.
- For goods pending despatch, the outstanding quantity is deleted.
- For goods pending credit, nominal adjustments are made to account for the difference between the actual stock despatched and that credited. The nominal postings can be analysed by cost centre and department.
Write off incomplete orders and returns
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 Orders > Adjustments > Write Off Incomplete Orders.
Open: Purchase Orders > Adjustments > Write Off Incomplete Returns.
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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.
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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.
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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 or Write Off Returns.