What to do with those unfulfilled purchase orders in the MoneyWorks accounting system?

A purchase order is a legally binding document sent from a buyer to a supplier or vendor, indicating the types, quantities, and agreed-upon prices for products or services that wishes to purchase. The purchase order serves as a confirmation of the buyer's intent to buy, and it outlines the details of the transaction for both parties.

The open purchase order (new or partially received) is in the Purchase Order section of the Transaction list of the MoneyWorks accounting system, then will transfer over to the Bought section once received in full. The orders are non-posting transactions, and it will not affect the ledgers.

You may edit the orders (please consult your accountant) if there is a change in order quantity. For example, you ordered 100 pcs of Product-1, but later increased to 120 pcs. In this case, you may change the order quantity from 100 to 120 pcs or add another detail line for the additional 20 pcs (this method is less confusing).

Reduce quantity order

You can add a new row for Product-1 with a negative quantity to indicate a reduction in the quantity ordered. For example:

Row1: Product-1: 100 pcs

Row2: Product-1: -30 pcs

Change the quantity of the processed purchase invoice from 100 to 70 pcs, and delete the row with a negative 30 pcs after you have processed the order (of course, you can also leave it as stated in the purchase order for future reference).

Reduce the ordered quantity after you have partially received the goods

The order will stay in the "Purchase Order" section if you decrease the quantity ordered after partially receiving the item. For example, you ordered 100 pcs of Product-1 and have received 70 pcs. Due to a shortage of material, you agreed to cancel the remaining quantity (30 pcs) ordered. Although you have changed the order quantity from 100 to 70 pcs, and the Backorder quantity is 0, it is still an open order.

You may process the purchase order to a purchase invoice (a dummy invoice with 0 quantity and amount) and post it. This process will move the order from the Purchase Order section to Bought (fully received). Nothing will be updated (ledger) since it is a dummy invoice.

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