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FormerMember

Managing Status Purchase Orders with Credit Card Terms where CC charged before Shipment

SUGGESTED
Posted By FormerMember

I am new to Sage, so please forgive me if I am missing something.  How does Sage handle managing Purchase Order status when an item is not yet received, but the credit card was already charged?  For instance, if a an east coast vendor charges a credit card on Monday before they ship, and the item is not received until the following Monday. If the payment is entered, does that close the Purchase Order? If so, how do you manage the status so the receiving department sees this as something expected to arrive? Does anyone have any workflow instructions, diagrams, etc. to manage this?

For now, this occurred for a non-inventory item, but if you have input for inventory items, please share that as well!

In case it helps, please assume that the card is charged on the last day of the cycle, and we need to reconcile and close the cycle before the item arrives the next week. Thank you!

  • 0
    SUGGESTED

    Surprised this not answered, not that difficult. perhaps you've figured it out?  Inventory or non-inventory - it doesn't matter. 

    I wouldn't worry that much about the timing. It is simply a Bill/invoice/Account Payable transaction that is open.  When received, the receiving department would receive and close the PO.  Once received, go ahead and close open payable as below.

    Typically the major issue is how you close/pay the vendor invoice when paid by a company/owner/manager's credit card account.  
    Do you have a GL Liability Account - "CreditCard Payable"?  If not, you should; then you can pay the Vendor's open payable invoice with that account - NOTE - not your normal cash/checking account - you aren't paying the Vendor's Invoice via your bank account - you used a CreditCard.

    Then you should immediately create a new bill/invoice payable to the Credit Card company - ie: Amex, Visa, etc. for the charged item.  Enter the description of the payment, amount charged.  The GL should be to the same  GL Liability Account - "CreditCard Payable" as you used to close the Vendor Invoice.  Debit and Credit off-set - CreditCard Payable balance = $0.00 - I say "immediately" because if not, you might later enter the payment to the CreditCard vendor and code it to an expense or inventory GL account.  Then you've duped that account, and still have a balance due in the CreditCard payable GL account.  

    When  you pay the CreditCard invoice, that is a simple payment to checking account offsetting the Account Payable GL

  • 0 in reply to JPHart

    Hey , if 's answered helps you, don't forget to mark it as verified.

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