Is there a way to create a PO that does not get invoiced?
We’re purchasing product from another division of ours that’s purchased at cost and the controller does not want an invoice generated.
He also wants the cost received into a specific inter-company GL account.
If I set a supplier control to go to that account, will it default to that in PO entry?
How do I make it so that no invoice is created? I’m sure I could write a BPM that when that specific supplier is received that it marks “SaveForInvoicing” as FALSE and “Invoiced” as TRUE. IS that going to cause issues elsewhere? Is there a better way?
This is one of those times when you need to know specifically what he means by “no invoice generated”. How are you going to pay for it? How is the other division going to request that payment, and how will Epicor know that that payment has been requested?
This is what I’m told:
"It’s an inter-company transaction.
No cash will change hands, but we need to account for it."
We’re the only company that’s using Epicor. Everyone else is on Oracle.
Yummy. You still have a purchase order and a PO Receipt. All the “no cash” thing means is that there won’t be any AP. If this is a one-off, then yeah, do it the way you originally said. If this is going to become habitual, then you’ll need to look into setting up a GL Control Code and maybe a BPM to set the PO upon receipt.
It’s infrequent right now (maybe once a month), but it will become a more frequent occurrence.
Is the Supplier GL Control the one I need to make the receipt go into that specific account he’s looking for?
The default process for a PO receipt and payment (assuming no Receiving Inspection):
- upon receipt, a PUR-STK transaction puts the items in stock, and financially there is a debit to the appropriate inventory account and a credit to Company AP Clearing Account.
- When the Supplier Invoice is added, there is a debit to the Company AP Clearing account and a credit to the Supplier’s AP Payables account.
- When the check is cut, there is a debit to AP Payables and a credit to Cash.
How does he want the transaction to flow? Without some type of custom process (like a BPM to do what you described originally), you can’t just skip step 3, which is what he probably wants to do (Epicor will always show that as a pending payment).
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He’s not responding, but if I understand his request correctly, this I think his vision is this:
- Upon receipt, a PUR-STK transaction puts the items in stock, and financially there is a debit to the appropriate inventory account and a credit to an intercompany GL account.
- There will be no supplier invoice
- There will be no payment
I have never tried this, but you could simply mark the receipt as invoiced. You would need a specific GL control so the RNI goes to “due to related company” instead of Accrued AP, but I can’t say I’ve ever tried this. In theory, it should work.
a safer approach, although far more complex, is to automate the generation of the AP invoice and then AP Invoice Write-off. Then you keep the data flow as epicor expects it. I have done this before, but it takes a bit of programming.
a PO and a Receipt will result in entries on the RECEIVED not INVOICED report.
Ultimately an invoice (per three way match) will clean that up.
Set-up a UNIQUE AP GL control… target the AP clearing as a unique AP CLEAR account
Also build in a unique AP payment account
...so any PO to this interco-supplier will on RECEIPT, move the parts to inventory and hit AP-clear for this supplier.
Periodically, input a bogus invoice (perhaps using PO # as the Invoice #) for the amount of the PO
On receipt AP CLEARING unique account for this supplier shows what should be “CLEARED” at some point with a bogus (made-up Invoice).
The INVOICE will clear AP clearing… and dump $$$$'s into unique AP payables.
PO exists…
Receipt matches PO…
Made-up invoice… 3 way match
Presuming the other division wants TRANSFER of $$$'s within your GL to them…
(but there would be no check) an entry would be made to AP-inter-co account to reduce to zero… and credit cash
Much simpler to cut a check to the other division… but the above works!
It would not be hard to remove the transaction from RNI; all that needs to be done is mark SaveForInvoicing false and Invoiced as True; I’ve had to do this for a datafix. This should easily be done with a BPM at the time of receipt.
As far as getting the GLs set, then if I set an AP Account GL Control on the specific suppliers, create the new control and set the clearing account to be the “intercompany” GL, then all should be well, right?
Yes. In theory, that should work. I’m personally not sure if Epicor’s BPMs or business objects will allow direct updates to those fields, but your concept is perfect.
I have an updateable dashboard that allows me to update those fields, so I don’t see why a BPM wouldn’t be able to.
Thanks everyone; I’ll give this a try.
Hi Aaron,
I am a little late to the exchange but thought I’d put it out there, why not Transfer Orders? We use them between plants… though we are all on Epicor. Using transfer orders, the plant value of the inventory gets properly debited/credited by using it. No POs cut, just transfer orders.
Nancy
Hi Nancy,
We don’t have multiple plants.
These are separate entities all under our corporate umbrella.
Additionally, everyone else is on Oracle; we’re the only ones using Epicor.