Hey all! I am looking for suggestions to help my accounting team reconcile their books. Warning: I am a developer, not an accountant, so my terminology may be off. Basically we sometimes create POs where the amount is estimated because we have to review the product for quality before we can provide a final number. In some cases we may simply enter "1.00." So the "amount" of the IR is 1.00. But then the "vendor bill" could be far more than that. This is throwing off the trial balance reports because it would show we receive an item worth 1.00 but then pay out 40k or whatever. What is the best way to "backfill" IR's with the value of the Vendor Bills?

I don't understand why TB is off? PO is a non posting transaction it doesn't have any GL impact to begin with. Are you guys using the 3 way match?

Use posting vendor bill variance « When you enter purchase orders, receipts, and vendor bills for items, each transaction can show a quantity, price, and exchange rate for the items. If there are any discrepancies between the quantity, price, or exchange rate, a remaining value may post to the Accrued Purchases account. If you use the Advanced Receiving feature, you can use the vendor bill variances process to generate journal postings to variance accounts, based on discrepancies »

At the moment, on occasions like this we get the PO updated to the correct amount so the amount on invoice matches so there isn't a variance in the accured purchases account. However potentially look at using the Vendor bill variances to post the correction for the differences - https://suiteanswers.custhelp.com/app/answers/detail/a_id/11157

Thank you for the responses. I also came across the vendor bill variance feature. I will dig into this more!

This is a very difficult issue but in my experience you should be making sure to update the IR to the correct price. The IR is what posts your inventory value and if your inventory is mis posted at $1 your whole inventory value will be off The bill variance will not fix the inventory problem it will only remove outstanding balances in the received but not invoiced report This will also get much more cluttered if you use bill in advance of recipt and/or inbound shipments I would push back hard that purchasing must update the PO and related IR if it has been posted

I agree with @MGBC suggestion on going to the root I mean the PO and change the values would solve all the problems

Great points. Thank you @MGBC and @Sam-I-Am

Note that at one of my previous company AP was changing the bill amount and items for reclass it caused big issues, link between PO, IR was broken from Bill. It could have been prevented if the reclass started at the PO level.

If the Variance between the Bill & IR are over some %, you could make an alert to get the IR updated.