Is there a way to make payments on large PO

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Posted on by Marsha Pavelich

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We have a purchase order for a large amount of work, for $300,000. It was entered as one line item, then sent to the vendor. Part of the work is completed and we received an invoice for $30,000. There will obviously be more payments to be made. What is the best way to handle this?

In hindsight, it would have been better to break it down into several stages with several line items. Since we didn't do that, is there a way around it?

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Marsha Pavelich 630 on at

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RE: Is there a way to make payments on large PO

Good idea! Thanks!
twelvestrikes 3,657 on at

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RE: Is there a way to make payments on large PO

Hi Marsha

Further to Richards advice.

We recommend our clients when they have a situation like this to enter

300,000 units @ $1 rather than 1 unit @ $300,000

this will allow you to accept invoices as you receive them

So for example in your case

you would have received 30,000 units @ $1 = $30,000 of the $300,000 total PO which would leave you still $270,000 to come at a later date.
Richard Wheeler 75,730 on at

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RE: Is there a way to make payments on large PO

Edit PO's is used to change the status. Sometimes you need to force this and this is where you would do it.
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Marsha Pavelich 630 on at

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RE: Is there a way to make payments on large PO

I was thinking I would have to go through Edit Purchase Order, and it won't let me add a line there. I didn't realize I could add a line to a released PO in Purchase Order Entry.

Thanks.
Richard Wheeler 75,730 on at

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RE: Is there a way to make payments on large PO

I would just edit the PO and add as many lines as necessary. I assume the item on the line is a service item so no inventory is concerned?

Transactions->Purchasing->Purchase Order Entry