Purchase Order Suspense Account



This article will discuss the Purchase Order Suspense Account and how to configure it. It is necessary to account for the inventory value of equipment/sales inventory that has been received, but whose invoice has not yet been posted to accounts payable. Once inventory is received, the inventory/equipment suspense accounts will be CREDITED, while the default equipment and sales inventory accounts are DEBITED. When the purchase order is posted, the suspense entries will be reversed. This will apply to both complete and partially received inventory.

 
How to get there

Expert: Program Menu > Configurations > Accounting Configurations > Account Numbers
Elite: Configuration Gear > App Configurations > Accounting Configurations > Account Numbers
 

Inventory suspense refers to sales inventory while equipment suspense pertains to the rental equipment. If you would like to use this suspense feature, there must also be default sales inventory and equipment accounts as well as inventory/equipment suspense accounts. If there are not, the program will alert the user when they try to exit the screen. To not generate these entries at all, do not put accounts into the inventory/equipment suspense fields.

As in an income suspense account, these entries will appear on the G/L with a value for the previous period (pp) and current period (cp).

The purchase order suspense detail report can be run to reconcile the account amounts with the received but unposted items in the system.

Related articles

Purchase Orders
Suspense Fund Change
Suspense Fund Report