Report Overviews
Open Vendor Deposit Report
The Open Vendor Deposit Report is accessed from the Reports window under Accounts Payable. It displays all vendor deposits that have not yet been fully applied to vendor invoices.
A vendor deposit will drop off this report in the fiscal month when the vendor invoice that uses the deposit is posted in full.
Open Purchase Orders Report
The Open Purchase Orders Report is accessed from the Reports window under Project Management > Order Tracking. It lists all purchase orders in Design Manager that are currently considered “open.”
Whether a purchase order is considered open or closed is determined by the PO Closed By setting in Company Advanced Options > Purchase Orders. In most cases, purchase orders close automatically when a vendor invoice is recorded against them.
Work In Process (WIP) Report
The Work In Process Report is accessed from the Reports window under Accounts Payable. It lists any component for which a vendor invoice has been posted but the item has not yet been invoiced to the client. Time components are not included on this report.
This report provides the detailed transactions that make up the current balance of the Work In Process account. It is also a helpful tool for ensuring that purchased goods and services are invoiced to clients in a timely manner.
In some cases, you may see items in WIP that have already been invoiced to the client. This typically happens when the client invoice is created before the vendor invoice is recorded. This is expected system behavior and is not a cause for concern.
How These Reports Are Related
These three reports represent different stages of the purchasing lifecycle in Design Manager.
The process typically begins with creating a purchase order. Once created, the purchase order appears on the Open Purchase Orders Report and remains there until it is closed. By default, purchase orders close automatically when a vendor invoice is posted. Although purchase orders can also be set to close when items are fully received, this configuration is rarely used and will not be covered here.
In many cases, a vendor deposit is paid after the purchase order is created but before the final vendor invoice is received. When the deposit is posted, it appears on the Open Vendor Deposit Report and remains there until it is applied to a vendor invoice.
When a vendor invoice is entered, several things happen:
Any applicable deposit is applied to the invoice, reducing or clearing the balance on the Open Vendor Deposit Report
The vendor invoice closes the related purchase order, removing it from the Open Purchase Orders Report (with default settings)
Unless the Bypass WIP option is selected, the cost of the item appears on the Work In Process Report
Once the item is invoiced to the client, the balance is cleared from WIP and moved to Cost of Goods Sold. This ensures costs are properly matched to client billing.
Cleaning Up These Reports
Open Vendor Deposit Report and Open Purchase Orders Report
When cleaning up a project, it’s generally best to start on the purchasing side before moving to the client side. From a purchasing standpoint, the first report to review is the Open Vendor Deposit Report. While the Open Purchase Orders Report can also be run at this stage, it often contains overlapping information. Cleaning up vendor deposits first typically makes the overall process faster and easier.
The steps below address purchase orders that appear on both reports. Once vendor deposits are resolved, you can use the same approach to clean up open purchase orders.
Step 1: Run the Reports
From the Reporting module:
For Open Vendor Deposits, open the Accounts Payable folder and run the report for the specific project
For Open Purchase Orders, open the Order Tracking folder and run the report for the same project
These reports will typically show the vendor, the related purchase order, and any associated deposit details. See examples below:
Step 2: Record a Vendor Invoice
To remove a deposit from the Open Vendor Deposit Report or close a purchase order, you’ll need to record a vendor invoice.
Go to the Accounting module and open Vendor Deposits & Invoices
Click Add and select Invoice
Enter the purchase order number shown on the report
Once entered, the purchase order details will populate automatically. Review the totals at the bottom of the window: Subtotal, Less Deposit, and Amount Due.
The goal is for the Subtotal and Less Deposit to match, resulting in an Amount Due of $0.
For example:
Subtotal: $300 (purchase order total)
Less Deposit: $150
Amount Due: $150
To resolve this, click the underlined reference number for the item and edit the cost. Reduce the merchandise cost so the Subtotal equals the Less Deposit. In this example, reducing the cost to $150 will bring the Amount Due to $0. While the actual cost may be higher, that can be addressed later. The immediate goal is to clear the deposit and close the purchase order.
Step 3: Post the Invoice
Enter the required invoice details, including invoice number, invoice date, and due date. Save and post the invoice.
After posting, rerun the Open Vendor Deposit Report to confirm the purchase order no longer appears. You should also see that the purchase order has been removed from the Open Purchase Orders Report.
Notes
If a purchase order appears on the Open Purchase Orders Report but does not have a deposit recorded, the purchase order will need to be manually closed. Refer to the Closing Purchase Orders article for instructions.
The fiscal month used when posting the vendor invoice determines the fiscal month in which the deposit drops off the Open Vendor Deposit Report.
Cleaning Up the Work In Process Report
The Work In Process Report lists items where a vendor invoice has been posted, but the item has not yet been invoiced to the client. This is expected in most cases. Occasionally, you may see items that have already been invoiced to the client, which typically occurs when the client invoice was created before the vendor invoice was posted. This is normal behavior.
Overall, items are removed from the WIP Report once a client invoice is created. To see how to make an invoice, please see the article attached here.
In the scenario where the item is attempting to bill the client for a balance due, you will want to use the override invoice price function to override the price to $0. For information on how to Override an Invoice Price, please see the article attached here.
Helpful Tips
It is often easiest to create client invoices directly from the Items Grid. Tag the appropriate items, click Actions, and select Invoice. This helps ensure nothing is missed, and the system will alert you if any items are already marked as completed.
If certain items should not be billed to the client, you can override the invoice price by clicking the underlined reference number on the Invoice Grid. For more information, please see How to Override an Invoice Price.
Be sure to post the client invoice in the fiscal month when you want the WIP balance to move to the appropriate Cost of Goods Sold account.
It is strongly recommended to clean up the Work In Process Report last. Clearing open purchase orders or vendor deposits first may cause additional items to appear in WIP.