Payables & Cash Management

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    Surya G
    How to make payment for Service related PO
    Topic posted November 29, 2018 by Surya GSilver Medal: 2,000+ Points, last edited January 30, 2019, tagged Financials, Payables 
    94 Views, 5 Comments
    Title:
    How to make payment for Service related PO
    Summary:
    How to make payment for Service related PO
    Content:

    Hi,

    Like wise for goods, PO will be raised and the GRN will be done to accept/receive for goods. i.e a kind of goods being acknowledged as received.

    Same way, there is PO raised for Internet connection or any services  related, in this case the supplier(service provider) will be paid fully when the service is completed.  To achieve at the PO level itself in order to bring the control at this stage. Based on the completion invoice will be raised and payment will be done accordingly.

    We just need to know is there any kind of GRN(for goods) process for service PO's. Please advice

    Thanks... 

    Comment

     

    • Mohammed Aejazuddin

      Hi Surya,

      The standard report available is ''Receipt Traveller' report which can be used as GRN report.

      Can you clarify the below queries:-

      Are you performing the receipt for this item and is the stock received being tracked via inventory onhand but charged to ''Expense'' account instead of Material Account.

      Secondly do you wish to match the invoice based on the receipt rather than PO.

      Regards,

      Aejaz

       

       

       

      • Surya G

        Hi Aejaz,

        Are you performing the receipt for this item and is the stock received being tracked via inventory onhand but charged to ''Expense'' account instead of Material Account

        No, the service is incurred and they are paying for the same. There is a PO for this service, but need to acknowledge like how we do GRN(for goods).

        Secondly do you wish to match the invoice based on the receipt rather than PO.

        Yes, based on the receipt it will be matched with the invoice.

         The requirement is PO will be raised for the Service and it needs to be acknowledged. i.e not the PO to Invoice rather PO -> GRN(like goods, need for Services) ->Invoiced.

        Thanks...

    • Mohammed Aejazuddin

      Hi Surya,

      Yes you can maintain stock for expense items as well, without being charged to Material Account.

      What you need to consider is the following:-

      1. Create item as Inventory and Stockable but flag ''Inventory Asset Value'' in the Costing attributes as ''No'' in order not to have the impact on Material / Inventory Valuation Account
      2. Flag Receipt Required item attribute to ''Yes''
      3. Invoice Matching should be ''3-Way' to be matched as per the GRN
      4. You can create an item template to apply these attributes whenever similar items are being created

      Hope this will resolve your queries.

      Regards,

      Aejaz

       

    • Surya G

      Hi Aejaz,

      Thanks a lot, will do the same and update you.

      Appreciate your timely help. thanks...

    • Marcus Comins
      Also ensure your line type is set to 3 way for the services line type(s). I think the task is Manage Purchasing Line Types. If it is set to 2 way then a GRN is not required/possible.