Purchase to Payment

Use this workflow to buy goods or services, record what was received, recognize the supplier liability, and settle it.

Before you begin

• The supplier must be active and have suitable payment terms, currency, tax, and purchasing data.
• Inventory items and receiving locations must exist for stock purchases.
• Confirm the required expense, inventory, tax, and payable accounts.

Workflow

1. Review the supplier. Create or update Suppliers.
2. Create the purchase order. Use Purchase Order Entry and send the approved order to the supplier.
3. Receive the goods. Use Receive Purchase Order Items when the shipment arrives.
4. Enter the invoice. Match the supplier invoice to the receipt in Enter Supplier Invoice.
5. Make the payment. Use Supplier Payment Entry.
6. Allocate the payment. Use Allocate Supplier Payment or Credit Note when necessary.

Verify the result

• The purchase order inquiry shows the correct received and invoiced quantities.
• Supplier inquiry shows the invoice, payment, and remaining balance.
• Inventory increased at the correct location for stocked items.
• Bank and General Ledger entries use the intended accounts and dates.