Managing Open Purchase Orders in Design Manager
When working in Design Manager, it’s essential to effectively manage purchase orders (POs) to ensure your records and reports reflect the accurate status of your inventory and purchasing workflows. This article provides guidance on removing zero-balance POs from the Open Purchase Orders report and closing POs to manage their visibility.
Why Do Zero-Balance Purchase Orders Appear on the Open Purchase Orders Report?
Purchase orders remain on the Open Purchase Orders report in Design Manager until they are closed according to your company settings for purchase orders. There are 3 ways they can automatically close:
All line items are fully received: This requires marking all items in the PO, including non-merchandise lines like shipping, as "fully received" in the Rec/Status field along with the need for a vendor invoice to be posted against this PO.
All line items are fully received & a vendor invoice is recorded against the PO: This requires marking all items in the PO, including non-merchandise lines like shipping, as "fully received" in the Rec/Status field along with the need for a vendor invoice to be posted against this PO
A Vendor Invoice is recorded against the PO: This requires you to go to the bills & invoices window to create that vendor invoice against the PO.
The PO is manually closed: You can explicitly close the PO by using the “Close PO Manually” option.
It’s important to note that having a zero balance alone does not remove a PO from the report. Removal depends on the receipt status or manual closure of the PO.
How to Remove a Zero-Balance PO from the Report
To remove a PO from the Open Purchase Orders report, follow these steps:
Look at your company advanced settings for purchase orders & confirm how POs are set to close in your system:
Depending on your settings, either, record the vendor invoice, mark the items as received or manually close the PO.
Steps to Close a Purchase Order
If you want to remove a PO by closing it, follow these steps:
Open the project that this PO sits under.
Locate the purchase order you want to close on the Purchase Orders window.
Tag the purchase order & select "actions" in the top right corner. From the dropdown, select "modify status".
Select the option to Close PO Manually.
After closing a PO, you do not need to retro-date the closed date. Once the PO is marked as closed and a Closed Date is recorded, it will automatically be excluded from the Open Purchase Orders report.
Key Notes to Remember
Closed POs and Zero Balances: Closing a PO is not dependent on its payment or remaining balance; a zero balance by itself will not exclude the PO from the Open Purchase Orders report.
Full Receipt vs. Manual Closure: Decide whether you prefer to manage PO visibility through receipt actions or by manually closing the PO.
No Retro-Dating Needed: There’s no need to retroactively adjust the closed date for a PO after marking it as closed—it will still be removed from the report.
Related Topics:
Updating Purchase Order Details
Managing Inventory Status in Design Manager
By following these steps and understanding the criteria for PO visibility, you can keep your Open Purchase Orders report organized and accurate.