When does closing a PO in Edit PO produce a Journal Entry?

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Posted on by Janice Woytek

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I have items on my received not invoiced report that I want to get rid of. If I close the Purchase Order in Edit PO status, a Journal entry is produce some times but not always. What determines if a journal entry is produced in this situation.

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Frank Hamelly | MVP... 46,619 Super User 2025 Season 2 on at

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Re: When does closing a PO in Edit PO produce a Journal Entry?

If the Quantity Received does not equal the Quantity Invoiced, GP will throw a variance or recalculate inventory cost, depending on the inventory valuation method. GP will throw a variance if it's a non-inventory item. Say you received 10 widgets at $5 each but only posted invoices for 5 widgets at $5. GP recognizes that you received 10 widgets, for which you were only invoiced $25 and make the adjustments accordingly when the PO is forced closed.

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L Vail 65,271 on at

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Re: When does closing a PO in Edit PO produce a Journal Entry?

Curiously, if you received the 10 widgets and the vendor never invoices you for any of them, closing the PO leaves the balance in Accrued Purchases. Hmmm.

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Janice Woytek 330 on at

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Re: When does closing a PO in Edit PO produce a Journal Entry?

The items are received but not invoiced. Then the PO is closed through edit PO. In some instances, a journal entry is made to take the amount out of accrued purchases. Other times, no journal entry is made. In the proposed scenario, wouldn't the system recognize that I paid $0 for the items and always make an adjustment?

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Frank Hamelly | MVP... 46,619 Super User 2025 Season 2 on at

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Re: When does closing a PO in Edit PO produce a Journal Entry?

Question Janice - what's the scenario that causes you to close a PO when that's been received but not invoiced? Were the invoices posted as Payables transactions?

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Janice Woytek 330 on at

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Re: When does closing a PO in Edit PO produce a Journal Entry?

If the line item has been partially matched, the system makes a journal entry to reduce accrued purcahses by the amount remaining to be matched, which makes sense. If the line item has not been matched at all, no journal entry is produced. I don't understand the logic but that appears to be the way it works.

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L Vail 65,271 on at

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Re: When does closing a PO in Edit PO produce a Journal Entry?

Janice,

I don't think it makes any sense either. Minds much greater than mine designed it!

Kind regards,

Leslie

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Janice Woytek 330 on at

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Re: When does closing a PO in Edit PO produce a Journal Entry?

Frank, usually it would be because the invoice was entered directly in AP.

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Frank Hamelly | MVP... 46,619 Super User 2025 Season 2 on at

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Re: When does closing a PO in Edit PO produce a Journal Entry?

I agree with Leslie. The behavior makes no sense but I'm sure the developer had some logical reason for it :)

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Richard Wheeler 75,848 Moderator on at

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Re: When does closing a PO in Edit PO produce a Journal Entry?

The developer was not an accountant that is why. Now you have an amount sitting in accrued purchases that will sit there for ever.

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L Vail 65,271 on at

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Re: When does closing a PO in Edit PO produce a Journal Entry?

Ah, but no, all of us reconcile our PAA account at month-end, yes?

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