Purchase Order Auditing

Purchase Order Maintenance will allow you to do your weekly "clean up" so that only current and valid Purchase Orders should be included in your Cost Report.

In any Production, you will always have situations where Purchase Orders are raised for specific transactions, then down the track the order is cancelled, or the transaction has been paid for by Petty Cash. In either case, the PO will need to be zeroed.

It's a good idea to run the Input Control and Distribution Purchase Order reports once a week, especially prior to preparing your Cost Report. See: Purchase Order Reports

A simple check of these reports will reveal amongst other things, any errors and old transactions which will need amending or zeroing. These reports could also come in handy when attending your Cost Report meetings, as you can easily provide details as to the breakdown of Purchase Order details per Cost Code.

It is recommended to not simply look at the total in the bottom right-hand corner of the Purchase Order Maintenance window when reconciling, as it may include items which are coded to Trial Balance accounts i.e. Deposits for Accommodation, Recoverable's etc.

Recalculating PO Totals

It is important that the total of your Purchase Order Maintenance reconciles with the total that appears in your Cost Report. If you find that in the Cost Report, the PO column does not match the totals in the transactions tab or PO Maintenance, then you will need to recalculate your PO totals.

To do this go to Control Table > System Defaults > General Ledger tab and tick the three update checkboxes, then press the Update Cost Report PO Totals button as shown below. Click OK and re-run the cost report to check if the PO totals are now correct.