Purchasing and Invoicing

1. Purchasing and Invoicing Spring ASBO 2008 Kim Harvey WVEIS Consultant

2. How the 2 affect each other • How you enter a purchase order and, consequently, how you pay that purchase order is very important in order to keep the encumbrance balances correct. • There are 2 kinds of PO’s – blanket and detail. Blanket is used if you do not choose to itemize the Purchase order or you are not ordering a number of items (e.g. contract services, utilities etc.). Detail, on the other hand, is when you enter the quantity of each item you are ordering.

3. How the 2 affect each other • Depending on what type of PO you enter will determine how you should enter the invoice. • When invoicing a blanket PO, you need to make sure you link the line on the invoice to the appropriate line on the PO, but you don’t have to worry about the quantity. The system will disencumber the PO based on the amount entered on each line of the invoice up to the amount of the original PO line amount.

4. How the 2 affect each other • When you invoice a detail PO, you not only need to link the invoice line to the correct PO line, but you also need to pay attention to the quantity entered. When the system disencumbers the PO, it takes the quantity from the invoice and multiplies it by the amount on the PO. If you order 1 quantity on the PO and pay for 1 quantity on the invoice, then the entire amount of the PO for that line is disencumbered, regardless of the invoice amount.

5. How the 2 affect each other • Bottom line: If you want to itemize the PO, enter a detail PO with the correct quantities of the items you are ordering and enter the exact quantity you are paying for on the invoice. Otherwise, enter a blanket PO.

6. Blanket PO’s

12. Detail PO’s

17. Purchase Order Requisitions • You may want to consider using the requisition programs. This allows end users to enter their requisitions in the system. They can either be deleted or approved. Once they are approved, they automatically become a PO, without re-entry.