Purchase Order Balance Remaining
Hi group, I’m looking for best practices on issuing a purchase order with a total approved amount for professional services (non inventory) and then applying incremental vendor bills against the PO and showing a balance remaining.
Unfortunately NetSuite does not track POs for monetary value, but only for quantity. So for example, if you have a quantity of 1 of “Professional Services” worth $10,000, and you bill that for 1 quantity and $1, NS considers the PO closed, because the quantity was billed. the value is irrelevant,
So for your situation, you can do one of two things:
If your professional services have a stable hourly rate, set the quantity of the line to the number of hours. Then, as the vendor bills hours, make sure to bill the correct amount of hours.
Alternatively, if the number of hours won’t work, then you may be forced to set the quantity to the dollar value. So if you have a PO for $10,000, set the quantity to 10,000 as well. Then when you bill, bill 1:1 match of quantity and hours.
I got the same issue. No vendor will bill you exactly or entirely the value of a PO. The billing is always spread over the period of the service or the product received.
PO using expenses don’t have a quantity field so this is useless. PO need to be created using generic items. We created a little more than 100 generic items with a value of $1 (one item for each expense accounts we have to make the selection more intuitive by the business partners). We then got them to imagine that the quantity is the quantity of dollars.. this end up working but this is an unbelievable weakness. I still cannot believe this expensive system closes POs even with remaining balances on them. Even more frustrating, if the PO is in Fx currency (if the vendor’s currency is a Fx currency, the PO will be in Fx currency) and uses generic items, the rate pulled in the generic item line will be inverted! If the PO is in CNY, the rate will be 7.. instead of 0.16. Disaster. Hope some people are getting fire for creating such a mess.