Purchasing-A/P Topic: Purchasing Services

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Purchasing

Solutions

Unit: Purchasing-A/P

Topic: Purchasing Services

At the conclusion of this exercise, you will be able to:

Perform the steps to purchase a service with a purchase order Process vendor invoices for services without a purchase order Set up recurring A/P invoices

In this exercise, you create a purchase order for a web design service. When the services are provided, the vendor sends an invoice. You create an A/P invoice to pay the vendor.

An invoice for electricity arrives from a new utility. You create an A/P invoice for this service. Since the utility is a new vendor, you create a vendor master record.

Rent for the office is due monthly. You set up a recurring service invoice to pay the monthly rent.

4-1 You have spoken with your vendor,V23000about providing web design services. Create a purchase order document and enter the vendor number. Change theItem/Service Type to Service. Enter a description for the service and choose the appropriate G/L account number for the service. Enter 2000 as the price for the service.

ChoosePurchasing-A/P Purchase Order 4-1-1

Field Name or Data Type Values

Vendor V23000

Item/Service type Service

Service Description Web Design Services G/L Account Number Use an account such as

miscellaneous expenses Total Price 2000

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Add the purchase order.

Purchase Order Number: _____________

4-1-2 The services have been provided and you received an invoice from the vendor. The invoice number on the vendor invoice is 187 and the invoice date is yesterday. Create an A/P Invoice to pay for the service received.

Choose the vendor from the list of vendors. Then enter the invoice number in theVendor Reference Number field. Enter today as the posting date. Change the document date to match the vendor’s invoice date.

ChoosePurchasing-A/P A/P Invoice

Vendor V23000

Vendor Ref. No. 187

Posting Date Today’s date Document date Yesterday’s date

4-1-3 Which setting should always be verified before copying from a purchase order? Why?

TheItem/Service Type field setting should be checked to ensure it matches the item/service type on the purchase order. Service must display in theItem/Service Type field in order to copy from service purchase orders. If item is chosen in theItem/Service Type field, you can only copy from item purchase orders.

4-1-4 Copy rows from the purchase order you created earlier. ChooseCopy from.

ChoosePurchase Orders.

Choose the appropriate purchase order from the list by double-clicking on the row.

Note: If you do not find the purchase order on the list, check that

Item/Service Type field is set toService.

Accept the default values in the Draw Document Wizard by choosing

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4-1-5 Which field in the A/P Invoice should match the total on the vendor invoice?

TheTotal Payment Due field should match the total due on the vendor invoice.

4-1-6 Save the A/P Invoice. ChooseAdd.

A/P Invoice Number: _____________ Accept the system message by choosingYes.

4-2 You receive a utility bill from a new energy vendor for the amount of 1255.60 for your main office. Create a non-PO invoice for the utilities.

ChoosePurchasing-A/P A/P Invoice

4-2-1 Create the vendor from theVendor Code field.

Choose the selection list icon in theVendor Code field. From theList of Business Partners window, chooseNew. Enter the following values:

Field Name or Data Type Values Vendor Code V29000

Name Southwest Energy

Go to theAddresses tab.

Enter aPay-to Address of your choice. Then chooseAdd.

A/P Invoice Number: _____________

4-2-2 For the vendor reference number, create an abbreviation that identifies the invoice to you, such as a combination of month, year and location where the electricity was provided.

Vendor Ref. No MMYY-MainOffice

4-2-3 Enter the current date for the posting date and enter the date from the vendor invoice (the last day of the previous month) for the document date.

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4-2-4 Enter information about the service provided in the A/P Invoice. Choose an appropriate G/L account from the list of accounts.

Description Main Office Power

G/L Account (Utilities account number) Total (LC) 1255.60

4-2-5 Save the invoice.

A/P Invoice Number: _____________ ChooseAdd.

ChooseYes.

4-3 You decide to set up a recurring A/P invoice for monthly payments on an annual lease. The A/P invoice should be generated on today’s date. 4-3-1 Create a recurring transaction template.

ChoosePurchasing-A/P Recurring Transaction Templates. Enter the following information into the template.

Template L1

Type A/P Invoice Recurrence Period Monthly Recurrence Date Today’s date Start Date Today’s Date

TheNext Execution field should display today’s date.

Before saving the template, right-click into the Doc No. field and choose the drop down icon to open theList of Documents – Drafts

window.

ChooseNew to create the A/P invoice draft that will be the basis for the recurring A/P invoice transactions.

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Vendor V30000

Item/Service type Service

Description Lease for Building 3

G/L account Use the account for Buildings

Total 3500

ChooseAdd to save the draft.

Then save and close the template by choosingUpdate thenOK. 4-3-2 Set theRecurring Transactions window to appear when you log in.

ChooseAdministration System Initialization General Settings. Choose theServices tab.

Select the check boxDisplay Recurring Transactions on Execution.

ChooseUpdateand then OK.

4-3-3 Execute the recurring transaction scheduled for today. If you log off the system and log back in, you will see the

Confirmation of Recurring Transactionswindow appear. The other option is to choosePurchasing-A/P Recurring Transactions.

Select the recurring transaction for today.

Choose the link arrow to review the A/P invoice draft document. ChooseAdd to execute the transaction.

Confirm the system message withYes.

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