Convert part of a transaction—Purchasing

Sometimes, you might need to convert part of a purchase transaction but not the entire transaction. For example, you have a purchase order for a certain quantity of items or a total value of services. Due to low inventory, you only want to pay for a quantity that is less than the purchase order quantity, or, you want to pay for a portion of services received.

What happens to the source transaction after you convert part of it depends on the Partial conversion handling setting on the transaction definition.

Convert part of a transaction

Sometimes you might need to convert part of a purchase transaction but not the entire transaction. For example, you have a purchase order for a certain quantity of an item, but you need to pay for a quantity that's less than the purchase order quantity or invoice an amount that's less than the total purchase order (such as a blanket purchase order)..

1. Go to Purchasing > All > Transactions and select the applicable transaction type.

   To view supplies requests, go to Purchasing > All > Supplies Inventory > Workbench. Learn how to process supplies requests.

2. In the transaction list, find the transaction you want to convert and select Convert next to it.

   A pop-up appears containing links to all transactions to which this transaction can be converted.

3. Select the applicable transaction name.

   The new transaction appears with the transaction data from the original transaction. The transaction Date defaults according to the Inherit date from source transaction setting in your user preferences.

4. If needed, change the quantity or the price of a line item (the Conversion type column can be edited if your company is configured to allow override of an item's default conversion type).

   For example, if the quantity on line item 1 is 10 and you are only receiving 8, change the Quantity on line item 1 to 8. Or, in the Conversion type column select Price, then enter the modified purchase amount in the Price field.

   You cannot enter a number in the Quantity field that has the opposite sign of the number in the original transaction. For example, if the original purchase order quantity is 5 and you enter -3 in the Quantity field on the PO purchase invoice, Intacct displays an error.

5. Make any other changes as applicable.
6. Select one of the following buttons:
   • Post: Saves the transaction and displays the list of transactions.
   • Draft: Saves the transaction as a draft and displays the list of transactions.
   • More actions: Use to select more Post and Draft options.
   By default, the transaction list for the transaction type you converted to is displayed when you select Post or Draft & done. To display the transaction list for the transaction type you converted from instead, change the Select the list type to display after posting a converted transaction setting in your personal preferences.

Create a back order

If your order transaction definition has Partial conversion handling set to Close original and create a back order, the system automatically creates the back order for you when necessary. Here's an example of how the process works:

1. Create a purchase order for an item with a quantity of 20 and post the purchase order.

   The purchase order State is set to Pending.

2. Convert the purchase order to a PO purchase invoice, change the item quantity to 10, and post the PO purchase invoice.

   The system sets the quantity of the original purchase order to 10, sets its State to Converted, and creates a new purchase order that has a State of Pending.

   The new purchase order has a quantity of 10 and has a B appended to the transaction number (indicating it is a back order). For example, if the original transaction number was PO-900, the back order transaction number will be PO-900-B.

   The new purchase order PO-900-B is created immediately, even if the vendor invoice needs approval.
3. Later, convert the back order purchase order to a PO purchase invoice, change the item quantity to 6, and post the PO purchase invoice.

   The system sets the quantity of the back order purchase order to 4, sets its State to Converted, and creates a new back order purchase order that has a State of Pending.

   The new purchase order has a quantity of 4 and has B1 appended to the original transaction number.

Each successive back order would be numbered B2, B3, and so on. The document numbers on the transaction list page for sales orders with back orders might appear like the following:

• PO-900-B2
• PO-900-B1
• PO-900-B
• PO-900

On the History tab for all of the transactions that are associated with the original sales order, you can see the transaction conversion chain of events.

Close out a partially converted transaction

Say that you have a purchase order that you partially converted to another transaction type. However, you will never use the remaining quantity for one or more line items in the purchase order. Depending on the Partial conversion handling setting, the purchase order will remain perpetually in a state of Partially Converted or Pending. While you could manually set a Pending transaction to Closed, it's typically not recommended as the purchase order could potentially be re-opened and converted.

The best practice to close out a partially converted transaction is to create and use a workflow where the purchase order can be converted into a close-out purchase order. Create a close-out purchase order transaction definition that can be created by conversion only from the purchase order. The close-out purchase order should be configured to reverse any inventory or posting effect of the source purchase order.

Set up a close-out purchase order workflow

1. Create a close-out purchase order transaction definition with the following settings:

   Field	Required value
   Template name	Specify a name that will make it apparent to your users that this purchase order is for closing out purchase orders that will no longer be used.
   Template type	Order
   Inventory totals	If Inventory totals are specified on the source purchase order, define the opposite inventory total effect here. For example, if the source purchase order increases ONORDER quantity, define this transaction definition to subtract ONORDER quantity.
   Transaction posting	Select the same posting option as the source purchase order.
   Transaction conversion: Can be created from	Select the source purchase order here.
   Posting configuration	If the source sales order has the transaction posting set to either General Ledger or Accounts Payable, define the opposite account mapping here. For example, if the source transaction was set up to debit Account X and credit Account Y, define this transaction definition to credit Account X and debit Account Y.
   Security configuration: Create policy	Convert only

2. Set other transaction definition settings as applicable and save the transaction definition.
   Do not edit any other transaction definitions to allow them to be converted from the close-out purchase order. The close-out purchase order needs to be the last document in its workflow so that its state can be set to Closed.
3. If the close-out purchase order affects inventory quantity, value, or both or posts directly to the GL, specify the same journals as the source purchase order in the Document configuration tab of the Configure Purchasing page.

Use a close-out purchase order

1. In the applicable purchase order list, select Convert next to the purchase order to close out.

   A pop-up window appears and displays links to all transactions to which this transaction can be converted.

2. Select the close-out purchase order.

   The close-out purchase order appears and displays all the data from the source purchase order.

3. Do one of the following:
   • To close out the entire remaining purchase order, do not change any Quantity values.
   • To close one or more line items but leave some line items open, set the Quantity of the line items that you want to remain open to 0.
4. Optional. If the close-out purchase order affects inventory quantities, has GL posting, or both, consider whether you need to change the transaction date, which will be the GL posting date.
5. Select Post.

   The close-out purchase order list appears and displays the close-out purchase order with its state as Closed.

View a transaction's partial conversion handling setting

1. Open the transaction. For example, open a purchase order in view or edit mode.
2. Select the History tab and then select the Definition link in the row of the History table that contains the first instance of the order document.

   The Transaction definition appears in a popup window.

3. Scroll down the page and locate the Partial conversion handling field.

What happens when partially converting to transactions that need approval are declined?

When partially converting a transaction to transactions that need approval, you can keep partially converting the transaction while any converted-to transactions are pending approval. However, if any of the converted-to transactions are declined, action is needed.

Assume a purchase order for an item with a quantity of 10 was converted into two PO purchase invoices with a quantity of 5 each. One of the PO purchase invoices was declined. (The Partial conversion handling setting does not matter in this example.) To ensure the quantity on the declined PO purchase invoice is not lost, either:

• Edit the declined PO purchase invoice and resubmit it, OR
• Delete the declined PO purchase invoice, create and post a new purchase order for a quantity of 5, and convert the new purchase order to a PO purchase invoice