I have been looking to migrate to ERPNext from our current system SAGE but am stuck on payments.
How do you correctly capture a check that isn’t tied to a purchase invoice?
I know for a check I create a Payment Entry. Party Type will be Supplier and then select my Supplier for the party. I put in the amount. But then this amount goes under unallocated since I don’t have a reference. I assume I don’t want this to remain as unallocated, correct? But I don’t have an invoice to tie this to.
How is everyone else doing this? Any help is much appreciated.
Thanks for the link and that is helpful but I do still have the question about going forward. After we have migrated to ERPNext, how do you correctly capture a check not tied to a purchase order?
For example, if I go out to the hardware store “ACME Hardware” and buy some glue to fix something. I write a check in the amount of $5.98. I’m not going to create a purchase order for this and thus not have a purchase invoice. How would I capture the check in ERPNext for this purchase without that reference?
If you don’t want a record of the purchased materials/supplies, you’ll have to live with an unallocated amount.
ERPNext is a robust accounting system. You can sidestep generally accepted practices but you’ll also have to live with the consequences
All those six-dollar purchases add up by the end of the year. How do you plan on
accounting for them?
There is a setting to not require a purchase order when creating a purchase invoice, so you can at least skip the PO.
Consider a workaround by using a credit card, or using vendors with 30 day billing. This won’t eliminate the issue but will reduce the number of purchase invoices.
So in a perfect setup, every single thing that money is spent should be tied to an item? Even utility expenses? Office supplies? And so on?
We are currently using SAGE 50 and maybe that has allowed us to develop some bad habits, I’m not an expect on accounting. But it allows us to write checks without a purchase order and purchase invoice. They get applied to an account. So when I write a check to our internet provider, I don’t need that purchase invoice, but it does apply the whole amount to our “Telephone / Internet Expense” account.
But in ERPNext, am I correctly understanding that every single payment out must be tied to a Purchase Invoice which in turn must be tied to Items in order for it to be properly allocated?
Do a lot of business users really create Items for every little thing? Or is it more common practice to just create an item called “Office Supplies” and “Internet Service”?
You don’t need to create a new Item for everything. Lines on a Purchase Invoice don’t need to be linked to an item. You can just type an arbitrary name/description in free-form.
You can also issue payment directly from a Purchase Invoice, without needing a separate Payment Entry.
