Pre-Billing

Overview

Purchase Orders can be pre-billed at the time they are issued to the vendor, prior to receiving an actual invoice/voucher.

This optional feature expedites the collection of reimbursable expense and can be helpful for managing pay-when-paid contracts.

When utilized, InFocus posts a single, zero-dollar Purchase Journal entry marked Is Purchase Order. This entry, will not impact A/P reporting but will reflect when billing.

The entry will include a zero-dollar credit to Accounts Payable, a debit to Expense and a credit to a PO Liability Account, offsetting the expense.

Once the invoice is received from your vendor, you'll convert the existing Purchase Journal to a formal entry (e.g. Purchase Journal crediting A/P and debiting Expense) by clicking Convert to PO in the Purchase Journal applet. Expense lines will be marked billed, if already billed, and the vendor invoice can be processed normally using A/P Check Writing or other preferred method.

Setup

Setup for this optional feature is completed via AD>Global Settings>Purchasing tab under Allow Purchase Orders to be included in Sales.

Procurement End of Month

Depending on the accounting controls your firm has in place, you may be required to reverse pre-bills at month-end. Typically this will be for firms who wish to keep non-invoiced expenses off of their Financial Statements. This can be done using the Procurement End of Month applet where you'll manage the reversal of PO Liability and Expense.