Accounts receivable update from credit purchase orders

A credit purchase order (PO) is an instrument that removes inventory from your store and shows it as money the “supplier” owes you. 

In Paladin, all credit balance POs create a NON-REVENUE invoice and charge the credit PO balance to your accounts receivable system. This increases accounts receivable WITHOUT increasing reported revenue. Statements may be generated, account payments accepted, and even invoice reprints of the credit PO can be produced.

The Comparative Revenue report details this information outside of all normal revenue and cash activities so that none of your daily reporting functions or totals change. Daily reconciliation of your PO Accounts Receivable balance to your general ledger require the addition of this value. You need to add the Credit PO to A/R total to the beginning balance (just like you do with Charge).

When a credit balance PO is created, a check is performed to verify your supplier has been configured with an accounts receivable account number. If not, a message is presented stating Supplier must have an associated customer account in order to process a Credit PO.

To enable this feature:

1. In Paladin, from the main menu, select File > Setup.
2. Select the Company tab.
3. In the the Purchase Orders pane, check Force Credit PO Balance to A/R.
4. Optional: Check Automatically Re-order AR Credit POs.
5. Click Save.
6. Select the Supplier tab.
7. In the list box, select the supplier you want to enable credit POs for.
8. Make any entry in the Associated Customer Account box. This action launches the Advanced Lookup window.
9. Select the customer name to associate with this supplier, then press F8 Select Customer to update the supplier field in the Supplier tab.
10. In the Supplier tab, click Save and repeat step 7 through 9 for any additional suppliers.
11. Click Save, then click Close.

To store a pending PO, edit the supplier’s data:

1. In Paladin, from the main menu, select File > Setup.
2. Select the Supplier tab.
3. Edit any information needed.
4. Click Save, then click Close.

Next, recall the PO and execute the credit purchase:

1. In Paladin, from the top ribbon, select the PO module.
2. On the bottom ribbon of the module, select F6 Recall PO.
3. In the Recall PO window, highlight the PO to recall.
4. Press F12 Recall.

Remember that only RECEIVING a credit PO updates inventory and updates accounts receivable.

5. At the conclusion of the credit PO Receiving event, a message window opens stating Credit PO Invoice Created, and displays the account number, invoice number, and amount.
6. Click OK to continue.

Note: Once a credit PO has been received, it may not be edited or modified. This is to protect the integrity of the Accounts Receivable event when compared to the received credit PO.