Adjusting and Canceling Purchase Orders

When a Purchase Order is in the Printed/Posted, Paid or Partially Paid status, you can adjust the charge-to account information as well as the balance of the purchase order.  Below are different scenarios and how you would make the adjustments.  If you find you need to do something that is not described below, please let us know.

IMPORTANT:  Security must be set for the users who are allowed to make adjustments to purchase order’s charge-to accounts.  Ask your system administrator give the following permissions to those users.

Budget > Expenditures > Purchase Orders > List

Select the purchase order to adjust from the list by clicking on the PO number

Scenario 1 – the purchase order was originally charged to the wrong account, and you simply want to move it to another account.  No Payments have been made yet

              In the Charge-To section of the purchase order, click on the Split  icon.

On the following screen, start keying in the account number you want to move the order to and then select it from the list.  Then enter the FULL amount that was charged to the original account.  Finally, be sure to enter the proper date the transaction should be posted.  Click the Adjust button.

NOTE:  You cannot delete the original account number.  It will still display with zero amounts.

Scenario 2 – the purchase order was originally charged to one account number, and you want to split it between two account numbers.  No Payments have been made yet.

              To add the second Charge-to account number, click on the Split    button.

On the following screen, start keying in the account number you want added and then select it from the list.  Then key in the amount you wish to charge to this account.  Finally, be sure to enter the proper date the transaction should be posted.  Click the Adjust button.

In the Charge-To section of the purchase order, the accounts will be distributed per the entry made above.

Scenario 3 – You received an invoice from the vendor, and it was for more/less than the purchase order was originally issued.  You have already made a payment(s) to the purchase order, and it is in the Paid or Partially Paid status.  This can also be used when a purchase order is in the Posted/Printed/Emailed status too.

( Can be used to adjust from 1 account to another if 1 Charge To account was charged incorrectly ) 

Click on the Adjust Balance button.  On the following screen, enter the reason for the balance adjustment and the amount of the adjustment. Be sure to enter the proper date the transaction should be posted.  Click the Adjust button. 

Note:  The window shows that it will automatically adjust the account number accordingly.  This automatic adjustment happens when the PO has only one account number.  If there is more than one account number charged on the PO, you must manually adjust the appropriate account(s).   

If you have more than one account number and need to apply the adjustment to the appropriate account(s), go to the Charge To section of the purchase order and you will see a warning that the additional $15.00 needs to be assigned to a charge to account.  Click on the Make Adjustment icon for the account(s) that need to be adjusted.

Change the amount to include the $15.00 (in this example I changed the amount from $300.00 to $315.00 on just one of my accounts).  Click the Adjust button.

This PO will now be in the Partially Paid status, and you can make the additional payment on it as you would normally do.

Scenario 4 – you have a purchase order in a Partially Paid status, and you want to cancel the balance because no more payments are going to be made to it.

In the PO details, click on the Cancel Balance button. 

Enter a reason for canceling the balance and click the Cancel PO button.

The status of the purchase order will now be “Paid (Balance Canceled)

ANOTHER OPTION:  Instead of canceling the balance, you can adjust the balance as shown in Scenario 3 by reducing it down.  Once the balance is reduced down, to equal the total payments the PO will change to a “Paid” status.

Scenario 5 – when a purchase order is in a Filling form, Encumbered or Printed/Posted status and you need to cancel the PO entirely (you no longer need it).

              In the PO details, click on the Cancel PO button.

Enter the reason and the date the transaction should be made, and then click the Cancel PO button.

              The status of the purchase order becomes Cancelled.

Scenario 6 – the purchase order has been paid and you need to move the payments and orders to another account number(s). 

In the PO, click on the Payments button, and then locate the account number you want to transfer the payments FROM.  Click on the Disb. Txfer (disbursement transfer) button.

On the following screen enter the account number(s) to which you wish to transfer the payment amount.  You can split the amount in up to three account numbers if you wish.  Click the Apply Disbursement Transfer button when done.

**BE SURE TO ENTER THE DATE YOU WISH THE TRANSACTION TO BE MADE**

This will add the new account number to the Charge-to section of the purchase order.  You will see that both the payment and liquidation has been moved to the new account number.

 Scenario 7 - Prior Year Purchase Orders - The ONLY things that can be done to Prior-Year Purchase orders is paying them or canceling them.  No adjustments can be made to them. 

If you need to pay more than what was carried over on the PO, you will need to make a new PO for the difference you need to pay.

If you need to pay less than what you carried over on the PO, you can make the payment and then go back to the PO and cancel the remaining balance.

Scenario 8 - you have a purchase order that already contains multiple account numbers, but you need to add more account number(s) and add charge amounts to the new account(s).

Click on the Adjust Balance button.  On the following screen, enter the reason for the balance adjustment and the amount of the adjustment. If you are adding multiple account numbers, you can enter the grand total of the amount you're adding here.  Then the instructions below will show how to split it between multiple accounts you add.  BE SURE THE DATE IS THE DATE YOU WANT THE TRANSACTION RECORDED ON YOUR BOOKS.  Click the Adjust button. 

Go to the Charge To section of the PO and click on the Split icon on one of the account numbers that already exists.  Enter the new account number you want to add to the PO and enter 1.00 in the amount field.  BE SURE THE DATE IS THE DATE YOU WANT THE TRANSACTION RECORDED ON YOUR BOOKS. Click the Adjust button.

Go to the account you used in the step above and click the Modify icon to change the charge amount back to what it was before you moved the $1.00 to the new account you added.  BE SURE THE DATE IS THE DATE YOU WANT THE TRANSACTION RECORDED ON YOUR BOOKS. Click the Adjust button.

Now go to the Modify icon for the new account you added and enter the amount you want charged to that account.  BE SURE THE DATE IS THE DATE YOU WANT THE TRANSACTION RECORDED ON YOUR BOOKS. Click the Adjust button.

Repeat the process to add more accounts if needed.  In the end, all the new account(s) you added should total the amount of the adjustment amount you made.  

Scenario 9 - You have a credit memo and want to apply it to a PO.  The credit memo combined with the payment will pay the PO in full.  To make it so the PO will close with the payment (be marked Paid) do the following:

When you enter the payment, in the payment line enter the full amount of the PO (aka the amount the payment would be without the credit memo).  Using the green plus sign, add a second payment line.  Enter the amount of the credit memo (do not enter a minus sign), check off the Final Payment check box and check off the Credit Memo check box.  Save.

After you process the payment, the payment for the amount minus the credit memo will be applied to the PO and the PO will be marked Paid.

Scenario 10 – you have a purchase order that you want to apply credit memos to and those credit memos will “pay” the PO in full.  

The purchase order in this example is $75.00.  The credit memo is for 75.00.  To record it so the transactions hit properly, do the following:

This is the PO “before” the payment

When entering the payment, the first line should be the amount of the payment you’d be making without the credit memo.  In this example, it’s $75.00 – the full amount of the PO.

Add a second payment line using the green plus sign and enter the amount of the credit memo (do not enter a minus sign) and check off the Final Payment check box and the Credit Memo check box.  

After the payment is processed, the PO will be paid in full