Purchase orders

Question

When purchase orders are entered, how do these flow through to the GL?

Is it only when the PO is converted to a Bill that the GL is affected, or are the GL accounts hit with the Order entry?

I have not used PO's before and I have 2 historical one's dated in previous financial years that have now been converted to actual Bills - I had to change the date obviously as they were dated several years back - my GST in the balance sheet is not matching my GST reporting now because of the GST recorded on the two Orders in previous financial years that have now been changed to Bills.

What's the most accurate way to handle this?

Thanks

Leanne

The_Doc · Answer

Hi @LDOG

As stated by @Genreve_S, PO DO NOT AFFECT GL ... full stop - not the GST, not the inventory, not anything - they are simply a note in the accounting system that a Purchase has been Ordered - if you have perpetual inventory - it will affect the 'On Order total' but there is no $$, count, GST affect.

If a deposit has been paid - that is painful - MYOB does not handle deposits on PO or SO well - but it will be easy to spot - ...... go to recap transaction - it will be sprinkled with a whole lot of extra entries that the backroom part of MYOB creates - and once that happens there is no easy way back... you can't delete only reverse which causes a mess.

However, a deposit doesn't affect GST - it is stored in Assets as a 'deposit to suppliers' and should have been reconciled by your accountant.

GST imbalance will, on the surface of your description, should only affect GST and inventory when you convert it to a bill as mentioned - then, depending on your date maybe causing the imbalance.

If it hasn't got a deposit on it - change the date back to the original date and edit it so there is no GST - see if that fixes the imbalance - if it doesn't then your problem lies elsewhere - if it does - then something you are doing with this is messing GST on purchases.

Sometimes fixing these problems is working forward in small steps from the date of the problem and actually identifying the cause - which is not necessarily just a single entry.

The Doc

Genreve_S · Answer

Hi @LDOG,

Thanks for explaining how your file was affected after those purchase orders were converted.

A purchase order on its own shouldn’t hit the GL. In AccountRight, a PO can affect inventory levels, but the accounts are generally only affected once the order is changed to a bill.

So if those two older transactions were just sitting there as purchase orders, they normally wouldn’t have affected GST in those earlier years just by being entered. Converting them to bills dated in the current financial year also shouldn’t make any difference compared to creating new bills.

The main exception would be if a supplier deposit had been recorded against either order, as that can post separately before the order is converted.

Given what you’ve described, I’d first check whether any deposits were entered on those two old orders. If not, the GST impact would usually be coming from when they were converted to bills rather than from the original PO dates.

If you’re still having trouble finding what’s causing the incorrect GST values, I’d recommend reaching out to our support team. You can either create a ticket in the My Account window or connect with our live chat team through MOCA, our virtual assistant.

Regards,
Genreve