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 in Paladin 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 will change. Daily reconciliation of your PO Accounts Receivable balance to your general ledger will 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 will be performed to verify your supplier has been configured with an accounts receivable account number. If not, a message will be presented stating “Supplier must have an associated customer account in order to process a Credit PO.”

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

  1. In Paladin, from the main menu, select File > Setup.
  2. Select the Supplier tab.
  3. Edit any information needed.
  4. Click Save, and 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, you will be presented with a message box that states, “Credit PO Invoice Created”, displaying 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.

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. You also have the option to check Automatically Re-order AR Credit POs.
  4. Click Save.
  5. Select the Supplier tab.
  6. In the list box, find the supplier you want to enable credit POs for.
  7. In the Associated Customer Account box, make any entry in this field. This action will launch the Advanced Lookup window. Select the customer name to associate with this supplier, and press F8 Select Customer to update the supplier field in the Supplier tab of the Paladin Configuration window.
  8. Back in in the Supplier tab of the Paladin Configuration window, click Save and repeat step 7 and 8 for any additional suppliers.
  9. When finished, click Close.

If you have questions or suggestions about this information, contact support@paladinpos.com.

*Content is subject to change. For the most recent version, visit the Help Portal.
Printed on: 5/17/22