Purchases vs Purchase Orders
Purchase records impact the accounting system. (In contrast, purchase orders only reflect anticipated purchases, but do not impact accounting.) After a purchase order is filled and the related purchase is logged, the expense is realized in the accounting modules.
This guide reviews the tools available for working with purchase records.
Purchases in List View
The Purchases module list view helps you work with multiple records. Status indicators use color to highlight which items need attention, based on the date in the Payment Expected field:
- Red = open & overdue (Pmt Exp date is past)
- Orange = open & currently due (Pmt Exp date is today)
- Green = open (Pmt Exp date is in the future)
- Yellow = pending
- White = closed
- Black = voided
Purchases in Detail View
The detail view gives you access to extended information about a specific record, including vendor information, the related POs, related jobs (if any), and portals to related disbursements, adjustments, and refunds.
Use Tax Flag
In the bottom-right section for Totals, you can mark the Use Tax flag to include this purchase in the Use Tax calculation.
Disbursements, Adjustments, and Refunds
At each of these sub-tabs, you can use the Plus icon to quickly create records. You can also click the go-to arrow (>) to jump to these related records:
- Disbursements — Funds sent with various methods of payment to a vendor.
- Adjustments — Purchase records that are offsetting to a related Purchase. (Read more about entering purchase adjustments.)
- Refunds — Payments back to your company from a vendor. In most cases, these are a return of an over-payment or a restoration of funds due to returned or damaged merchandise. (Read more about vendor refunds.)
Entering Purchases (or Vendor Invoices)
From the Purchase Orders Module
- Navigate to Menu > Accts Payable > Purchase Orders.
- Use the Quick Search bar to locate the desired purchase order (PO).
- On the details view, click Management > Purchases > Plus () > Purchase.
- On the new Purchase record, enter the invoice details.
- Click Save and Open.
From the Purchases Module
When a vendor's invoice covers multiple POs, it is helpful to process the invoice directly from the Purchases module.
You can quickly populate a new purchase record by using Actions > Import Purchase Items, bringing in multiple purchase items from a spreadsheet or .CSV file (e.g. a monthly credit card statement).
Warning: When you process a vendor's invoice at the Purchases module, the purchase record does not link back to a PO and aACE does not cross-check expected charges. To cross-reference POs or to capture manufacturer lot or serialized number tracking, you must process the invoice from the PO module (see above).
- Navigate to Menu > Accts Payable > Purchases, and click New.
- Select the appropriate Vendor.
Unbilled purchase items for the vendor are autopopulated, including the related PO numbers. Note: If the Qty column shows zeroes, it may be because your company policies have configured system preferences to not allow purchase for goods that have not been received.
- Remove each item not referenced on the vendor's bill by clicking the item row's X.
- In the Vendor section, enter the Vendor Inv # and Inv Date.
- In the Totals section, enter the amount of shipping and tax; if needed, mark the Use Tax flag .
- Click Save and Open.
You can adjust purchases that are in Open or Closed status. (For purchases in Pending status, simply edit the record.) When you create a purchase adjustment record, it does not carry its own balance; instead, it affects the balance of the original transaction.
- Navigate to Menu > Accts Payable > Purchases, then locate the desired purchase record.
- From the detail view, create the adjustment record by either:
- Clicking Actions > Credit/Adjust Purchase > Adjust.
- Navigating to the Adjustments tab, then clicking Plus () > Adjust.
- At the adjustment record, enter the necessary changes (e.g. remove items, update quantities, change tax or shipping amounts, etc).
- Click Save, then Open.
Vendor Credit Memos with Purchases
Vendor credit memos are recorded in aACE as open purchase records with a negative balance. These records typically occur if you create and post a purchase, pay it (in part or in full), and then credit/adjust the purchase (e.g. returning some items to the vendor). Rather than receiving a refund, you keep the 'negative purchase' to apply as a credit later.
If a different set of events result in a credit, you can simply create a negative purchase and open it until it's ready to apply.