Scenario
Incorrect Journal was made for the purchase of an item with the following entry:
Expense XX
Cash XX
Journal is made in a closed period and cannot be edited. Then, a Purchase Order was left unfulfilled, unbilled, and therefor unpaid. There now becomes an overstatement of expenses and an understatement of inventory since a Purchase Order is a non-posting transaction.
Solution
To correct the inventory:
- Navigate to Transactions > Purchases > Enter Purchase Orders > List
- Purchase Order: Click View
- Click Fulfill
Note: Enter the necessary details.
- Click Save
To prevent billing:
- Navigate to Transactions > Purchases > Enter Purchase Orders > List
- Purchase Order: Click View
- Click Close button
Note: User may also add a memo to explain why the PO is being closed to let the other users be aware.
To create the following journal entry:
- Navigate to Transactions > Financial > Make Journal Entries
- Account: Add the following Accounts
IRNB XX
Expenses XX
- Click Save
Note: The suggested entry is based on this logic:
