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5Hello All,
In our business we currently engage subcontractors to complete work for us on a do and charge basis, where their primary charge to us is hours of labour. As part of this we raise a purchase order in Dynamics GP to our subcontractor, and record the hours required as a quantity value, and later a recievings transaction entry to enter their invoice once the work is complete. When they invoice us sometimes the quantity of their hours invoiced is less than what's present on our purchase order. I.e. we have a purchase order for 5 hours labour but they will invoice us for 4 hours labour.
This creates an issue for us because the if the invoice is recieved as is, the balance of the purchase order will remain open. My question here is two fold. Firstly on a technical level, is there any function to enter a recievings transaction entry, and remove the balance of the purchase order within the one step, or button / function?
The second from a business process perspective if anyone has any insight on how to manage this situation (mainly if there is no technical solution as above). I am currently considering two approaches. One is to have the staff calculate the difference between the purchase order and the invoice, and then return to the purchase order entry screen, and cancel the difference once the recievings transaction is entered. The downside to this approach is that it is very manual and labour intensive, and can easily be missed with no natural mechanisms to ensure this is completed correctly. I.e. we can easily run reporting / smart lists on this, but requires management overhead and effort to achieve on.
The second approach I was considering was changing the purchase order process to have a new item code to encompass all subcontractor labour, with a quantity of 1. This has the advantage that we can recieve and close out the transaction in a single step. The disadvantage of this is that we have currently recorded the expected or contractually agreed labour rates against each of our credtiors. I.e. if I raise a purchase order with for 2 hours of labour, we know the purchase price for creditor A is $50, and creditor B is $90. If we don't maintain this schedule of rates structure within GP, we would likely use a spreadsheet based method of recording their charge rates which again can be fraught with mistakes and prone to error, not scalable etc.
If anyone has any insight on how this can be approached it would be greatly appreciated.
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