Accounting & Bookkeeping & Small Business Forum

[jenelle34]

We create a purchase order, the product is received and we get billed for product we sell. I pay the bill manually. I have open purchases accruing because I do not post and pay each invoice because we do not have to pay for product until it sells. Therefore all my receivers are still open. Does anyone have a procedure for a consignment vendor that they would like to share? My goal is to clean up the open purchases report.

[Ken]

When the product sells is when you should create the bill and pay for it. To clear previous POs, from the Open PO report, you may click on each PO and click on the Closed Check Mark at the end of each Item Line on the PO.