Question
How do you cancel/reverse a Subcontract Purchase Order?
Answer
You may be in the current situation where you have a workshop job with an incorrectly raised subcontract Purchase Order attached (invoiced or not).
However, once the Purchase Order is received in, it cannot be changed and needs to be reversed. To do this you will need to do the below or a subset of the options:
- Reverse the Workshop Job:
- Raise a credit with a non-labour line attached for the value of the Purchase order.
- Produce credit.
- Invoice out workshop job (if it is not already).
- This will 0 down the effect on the workshop side.
- Clear up Sales Ledger:
- Match off the credit created in the workshop with the original invoice.
- This will 0 down the effect on the sales ledger side.
- Clear up GRNI:
- Post invoice to the purchase ledger account the purchase order was raised on to clear off the GRNI line that was created upon receipt of the purchase order.
- This will 0 down the effect on the GRNI.
- Clear up Nominal Ledger:
- Post credit to the purchase ledger account coded to the cost of sale of the subcontract line.
- This will put your nominals back in line.
- Clear up Purchase Ledger:
- Match off the invoice from the GRNI process with the credit that was posted to correct the nominals.
- This will correct the purchase ledger.