Vendor Invoice for an Inventory Purchase Order
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Vendor Invoices represent the final bill received from the Vendor for an Inventory Purchase Order. In common practice, Vendor Invoices should be entered in a timely fashion upon receipt, even though they may not be due until a later date. The Check can be written later when the bill is actually due.
To record a Vendor Invoice on an Inventory Purchase Order, select Accounting - Bills & Invoices (Vendor Deposits, Invoices, Expenses). Doing so will display the Vendor Deposits, Invoices, and Operating Expenses Window - New Tab
Click the Add button to display the Vendor Deposit, Invoice, or Expense window.
On the Type menu, select Invoice for Inventory PO. Doing so will cause the Vendor Deposit, Invoice, or Expense Window to reconfigure properly for the Vendor Invoice information as shown below
Enter the desired Purchase Order into the Purchase Order Number (PO #) field. To locate the Purchase Order Number using the Inventory Purchase Order Search Window, click the Search button. Upon entering or selecting the Purchase Order Number, Design Manager will default the Vendor from the Purchase Order.
The Vendor Code may be changed if a different company than the original Purchase Order Vendor is receiving the payment as in the case when paying a separate entity for freight or shipping.
Choose the proper method to pay the invoice in the Pay With menu. The Pay With menu option will default to the first Accounts Payable Payment Type which is most commonly “A Check”. To choose to pay with a Credit Card, select the desired Credit Card from the menu. For more information on using a credit card to pay your Vendor, see Paying a Vendor with a Credit Card. To learn more about creating and using Accounts Payable Payment Types, see Accounts Payable Payment Types and the Company Information Window - A/P Payment Tab.
Enter the Invoice Number (Invoice #) and Invoice Date, as well as the Due Date that is printed on the bill. Each Inventory Stock Item that was included on the Purchase Order will be listed on the Purchase Order Stock Items Grid.
Below the grid, the Subtotal of all merchandise, freight, etc. will appear, as well as the total of all Deposits previously recorded for the Purchase Order in the Less Deposit field. Design Manager will calculate the total Amount Due by reducing the Subtotal by the Less Deposit amount.
If the Vendor offers a discount for early payment, and the discount information on the Vendor Window – Defaults Tab was entered, then the Discount amount and number of Days To Take the discount will be displayed. Please note that this will not affect the Amount Due. Only the amount for which the Check will be written or charged to the Credit Card will be affected, provided the Invoice is paid before the deadline.
If the Vendor Invoice is only be for a portion of the original Purchase Order, the cost of the Stock Item(s) will need to be adjusted or removed. To do so, select the Stock Item on the Purchase Order Stock Items Grid and click the Edit button to the right of the grid. This will open the Vendor Invoice Distribution Window.
Here the costs for the merchandise can be changed as well as entering tracking information for the Purchase Order. Be sure to record the proper quantity of the Stock Item that is currently being billed by the Vendor into the Quantity Paid For (Qty. Paid For) field as this is a critical figure in maintaining a proper Inventory! For information on the Quantity Paid For, see Inventory Stock Item Window - Status / Adjustments Tab. Sometimes additional charges such as freight or delivery were not included on the There is no need to edit the Purchase Order to include the additional charge!
Press OK when any necessary changes have been made.
If the Vendor Invoice is for a single Stock Item on a large Purchase Order, click the Clear button to remove the current costs from all Stock Items on the Purchase Order. Then input the proper cost on the Stock Item for which is now being paid as described above.
Sometimes it may be desirable to spread an additional charge from the Vendor across all Stock Items on the Inventory Purchase Order such as a single delivery charge that is not itemized per Stock Item. In such a case, click the Distribute Cost button to display the Distribute Invoice Cost Window whereupon the total cost can be spread across all Stock Item under a variety of conditions. The Distribute Invoice Cost Window is discussed in detail below.
Important: Make sure that the cost of each Stock Item on the Purchase Order Stock Items Grid matches the corresponding entry on the bill. Insure that the Amount Due field matches the amount due of the bill!
If paying with a hand written check or a wire transfer/debit card, click on the Hand Check Wire Transfer (Hand Chk Wire Trans) button to enter the check/transfer information. If a check is going to be physically printed on the printer, do not click the Hand Check Wire Transfer Button.
When all of the information appears to be correct for the Vendor Invoice, press OK. The Vendor Invoice will now appear on the New Vendor Payables Grid on the New Tab of the Vendor Deposits, Invoices, and Operating Expenses Window. The Invoice can be edited or removed at this point by clicking the Edit and Delete buttons, respectively. To record the Invoice for the Inventory Purchase Order, click the Post button.
Additional Vendor Invoices:
Quite commonly, multiple Vendor Invoices for a single Purchase Order will need to be recorded. Here are a few examples of such cases:
Additional Vendor Invoices are recorded in the same manner as recording the first Invoice. Design Manager, however, will now only display costs for merchandise that has not yet been paid. In other words, if a prior Vendor Invoice was recorded for some Stock Items on the Purchase Order, but not others, only those that are not yet purchased will be included in the Invoice total. Costs can be adjusted as necessary on the Vendor Invoice Distribution Window. If a freight or installation bill has been received, all of the costs may already be zero. Only the appropriate freight or installation cost may need to recorded to match the invoice received.
If a Check needs to be printed through Design Manager, skip to the section on Printing Checks below.
A full description of the windows mentioned above are available under Vendor Deposits, Invoices, and Operating Expenses Window - New Tab, Vendor Invoice Distribution Window, and Distribute Invoice Cost Window.
Accounting: Upon posting a Vendor Invoice for a Project Purchase Order, Design Manager will credit the Accounts Payable Account and debit the Inventory Account. The Vendor Invoice will remain on Accounts Payable until a Check or other form of payment is applied to the Invoice. If the Hand Check Wire Transfer button was used, then Design Manager will further debit the Accounts Payable Account and credit the designated Cash Account. If the Vendor Invoice is being paid with a Credit Card, the Credit Card Liability Account, rather than Accounts Payable, will be credited.