Generating a Purchase Order indicates that the Service from the Vendor has been ordered and an Invoice from that Vendor is to be expected after the completion of the work.
Important – PO’s should be generated no later than 1-2 days after a Service is performed to avoid unnecessary delays in Invoice processing. Prior to Generating PO’s the user must confirm:
- The Service Item was setup under the correct Principal/File Type (Billing Party)
- The Service Item was setup to the correct Vendor or DBA Vendor/Sub Contract Vendor
- The Service Item was setup using the correct Service Item Code
- The Service Item cost estimation is reasonably accurate
- The Service Item discount estimation is reasonably accurate
Cancelling a Purchase Order means that a Vendor Invoice will not be received for that Service Item. It is critical that all Purchase orders in the system are valid and Vendor Invoices should be expected for them. All invalid Purchase Orders must be cancelled as soon as this information is known.
Prior to Cancelling a Service Item Purchase Order the following must be true:
- The Service Item cannot have an Invoice attached. If an invoice has been attached it must first be unattached prior to cancelling the item.
- The total of payments must be $0.00. If payments have been posted to the item they must be moved to another item prior to cancelling.
Service Items cannot be reused after the cancellation process. If required a new Service Item will need to be setup and a new Purchase Order generated.