The purpose of this function is to close a posted PO, update the product cost and give you the option of creating an AP invoice on the spot.

Here you see a list of posted PO’s, and you have several options.
Closed/Editing – If the PO has yet to be closed, then a Close button will appear. If the PO has already been closed, then the time of closure will appear.
Note: Closing will update the product cost and vendor price list. The product cost will update using a cost averaging method. It also means that you are done receiving for this PO, so you won’t be able to go back and receive additional shipments for this invoice.

Cost Averaging Method:
New Cost= ((Previous On Hand Weight*Cost)+(Weight Received*Cost Purchased))/(New On Hand Weight)

“” – If the PO has yet to be closed, then you will have the option to make any last minute changes to the Price Only. If the PO has been closed, then you will have the option to view the receiving order.
To AP – If the PO is closed, a Send button will appear that creates an AP invoice with the Invoice Number in the Receiving, the Total Amount as the GL Chart of Account: Cost of Good Sold. Note: If the vendor invoice has more than one item as cost of goods sold, then you can modify the AP and add more GL Charge Items.

You are now ready to manage posted PO’s!