Basic steps for setting up and using purchase orders:

Setting up:
1.  Establish basic Purchase Order information in Configuration on the following tabs: General, General Ledger, Products and Misc. Line Items.
2.  Establish user and group security for Purchase Orders in Security.
3.  Set up Encumbrance posting and transfer accounts in Bank Accounts.                                                          
            Note: The Encumbrance Summary account is typically set up as a Liability account. For reconciling purposes, we recommend defining a separate account and not using the regular AP Summary liability account.
4.  Define any other optional information (a Journal Reference in General Ledger, any attributes or tables or additional addresses desired)


Using Purchase Orders:

1.  Enter the purchase order and line items in the Vendors module. 
  • DR Expense – line item amount
  • CR Encumbrance Summary

2.  Print the purchase order in Mail and forward it to the vendor

3.   As items are received, create a receipt for the Purchase Order.

  •  DR Encumbrance Summary
  •  CR Expense – original line item amount

4.  When the purchase order is fully receipted, create an invoice of the items received.

  • DR Expense – for actual cost of line item
  • CR Accounts Payable Liability

5.  When the purchase order is fully receipted, or the line items cancelled, close the purchase order.


Note: Posting can occur at any time. The establishment of the Purchase order creates the encumbrance, the receipt of the line items reverses the encumbrance--unless the status of "Wait for Invoice" is selected on the receipt, in which case the encumbrance is not reversed until the invoice is entered.

Added Functionality:

The Purchase Order module enhances your existing system with a variety of options for recording purchases, tracking encumbrances, and generating invoices from receipts:

  •     The optional Purchase Orders module integrates with Accounts Payable to make the purchasing process easy.
  •     Check your Blackbaud General Ledger account or project budget before generating a purchase order.
  •     Enter unlimited items per purchase order.
  •     Create recurring purchase orders.
  •     Print POs, receipts, duplicate orders and cancellation notices.
  •     Post encumbrances directly to Blackbaud's General Ledger.
  •     Receive full or partial shipments and record merchandise as it arrives.
  •     Process shipments of items not ordered or received at a different unit cost.