Mejores Practicas Compra Doc Id 1461259.1 - Best Practices For Purchasing Items Requiring Prepayments

9/11/2017 Document Display
E1: 43: Best Practices for Purchasing Items Requiring Prepayments (P4310/P4312/P4314) (Doc
ID 1461259.1)
In this Document
Purpose
Details
Approach
Example Solution
Supplier and Item Setup
Accounting Setup
Purchase Order Entry (P4310)
Creating a Voucher to Pay the Deposit
Receiving the Item from the Supplier
Processing the Vendor Invoice
Summary of Journal Entries
References
APPLIES TO:
JD Edwards EnterpriseOne Procurement and Subcontract Management - Version XE to 9.1 [Release XE to 9.1]
Information in this document applies to any platform.
PURPOSE
Some vendors require a deposit or prepayment for large purchases before they will ship the client’s order. For example, a
company orders 10 treadmills for the exercise center in their apartment complex. The vendor requires a 15% deposit, before
they will ship the treadmills to the client’s property location. Is there a way in EnterpriseOne to prepay the deposit so that the
purchase order can be shipped?
This document is part of an Information Center - to see other documents related to Procurement, please use the links
provided below:
Information Center: JD Edwards EnterpriseOne Procurement and Subcontract Product -> Information Center: Using JD
Edwards EnterpriseOne Procurement and Subcontract Product -> Doc id 1461259.1
DETAILS
Approach
The purchase order can be entered with 3 lines as follows:
1. Purchased Item (amount added for the deposit for purchase of the item).
2. Deposit amount (positive amount added for the deposit).
3. Deposit refund amount (negative amount subtracted for the refund).
A payment for the deposit amount can be sent via two-way match process at the time the order is entered. Later the Purchase
amount and deposit refund can be reconciled through the three-way match process. Example below illustrates the process for
15% advance payment.
Example Solution
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Supplier and Item Setup
Supplier 59860 is the supplier of the exercise equipment. Item TM5986 is the treadmill product. The item uses purchase price
level 1 (supplier item level) and the price in the supplier catalog (P41061) is 1,000.00 for 1 unit and 900.00 for 10 or more
units.
Accounting Setup
A G/L Account is created (P0901) for Purchase Deposits, which is used to account for the deposit and deposit refund lines on
the order.
Purchase Order Entry (P4310)
Enter the first line of the order with the item number and quantity of 10. Notice the price comes in at $900.00 because of the
quantity break for 10 units in the Supplier Catalog (P41061).
Calculate 15% of 9,000.00 which is $1,350.00. On the second order line no quantity is entered but an extended amount of
+$1,350.00 is populated for a deposit. On the third line, no quantity is entered but an extended amount of -$1.350.00 is
populated for a deposit refund.
Creating a Voucher to Pay the Deposit
Run the Match Voucher to Open Receipt (P4314) and take the Form Exit to Orders To Match (2-Way) to create a payment
voucher for the deposit (line 2).
On the Select Orders To Match screen, check the checkbox for the line with the deposit (line 2) and Click OK.
Click OK on the Voucher Match screen to save the voucher for the deposit.
Reinquire on Supplier Ledger Inquiry. The payment for the deposit ($1,350.00) can now be scheduled by Accounts Payable.
Journal Entries show a Debit to the Purchase Deposits account of $1,350.00. After post this will also result in a Credit of
$1,350.00 to Accounts Payable.
Receiving the Item from the Supplier
Once the supplier receives the payment for the deposit, they will ship the treadmills. The warehouse can receive both the
inventory item (line 1) and the deposit refund (line 3) for the full amounts using PO Receipts Entry (P4312).
Journal Entries (P0911) show a Debit to Inventory of $9,000.00 with a Credit to Received Not Vouchered of $7,650.00 and a
Credit to Purchase Deposits of $1,350,00.
The Item Ledger (P4111) shows the item was received at a unit cost of $900.00 and extended amount of $9,000.00.
Processing the Vendor Invoice
When the vendor's invoice is received, run the Match Voucher to Open Receipt (P4314) and take the Form Exit to Receipts To
Match (3-Way) to create a payment voucher for the received item and deposit refund.
On the Select Receipts To Match screen, check the checkbox for the lines with the received item (line 1) deposit (line 3) and
Click OK.
Click OK on the Voucher Match screen to save the voucher for the purchased item and deposit refund.
Reinquire on Supplier Ledger Inquiry. The second voucher was created for payment of the PO amount ($9,000.00) less the
deposit refund (-$1,350.00) and can now be scheduled for payment.
Journal Entries (P0911) show a net reduction (debit) to the Received not Vouchered account of 7,650.00. After post there will
be a Credit to Accounts Payable for the Vendor Invoice of $7,650.00.
Summary of Journal Entries
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9/11/2017 Document Display

The purchase order can be entered with 3 lines as follows:

Supplier and Item Setup

Purchase Order Entry (P4310)

Creating a Voucher to Pay the Deposit

Receiving the Item from the Supplier

Processing the Vendor Invoice

Summary of Journal Entries

Didn't find what you are looking for?

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