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Hi all,
Newbie here. So we have this scenario:
PO's generated in Company Profile A. Products received, PO received in Company Profile A. Merger happens and closes Company profile A and creates Company Profile B. Vendor reaches out and advises that they can't process the check they received from Company Profile A because vendor had changed names and address.
How does AP pay the unpaid PO's/invoices while Company Profile A is closed and we only have Company Profile B available to us?
Hi NewbieLogistics22,
So when you have this situation you have to do things manually. First of all make sure that there is no provision with your banking in Company B to honor the check from Company A. If not, then someone in Finance will need to issue stop pay on that document and record in banking.
To pay the outstanding Invoice from the vendor in Company B you will need to create the vendor, enter the invoice and generate a payment. I am assuming that you do not need to duplicate the PO since that transaction was completed in Company A before the merger and so would already be reflected in the inventory and financials.
There is a little to this if the Finance side of the business has not accounted for the outstanding check issued but not cashed for Company A's payment to this vendor. If it was done correctly and the merger was done after the time of issuing the payment then Company B should know there is an outstanding check and will know ( hopefully ) how to deal with this.
Hope this helps. Post more details and the community will help to get to the bottom of the problem.
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