What to do about issuing parts still waiting for vendor invoices?

Does anyone have any good methods or procedures to manage receiving a part when a vehicle is down and waiting but not receiving the invoice for another week or so? We need the freight charges for accurate costs but we need the part put into RTA to be charged out to a Work Order immediately.

I know you aren’t alone in this, so I’m really curious to hear other thoughts/solutions as to how people handle this. Especially if you don’t allow inventory to go negative AND you aren’t sure what the price (or freight) will be on the invoice when it comes in.

Couple questions. Are you a ‘for profit’ company? Does the part have to be charged out before you receive an invoice? I paper clip the packing slip to the parts request, when I receive the actual invoice, I reopen the work order and charge out from the p/o screen. Just remember to change invoice date and received date on the p/o.

No, we are a public agency. We have used the method of linking the Work Order to the Purchase Order, thus forcing the work order to remain open until we receive the PO. Unfortunately this could cause a backlog of “finished” work orders that we cannot close even though the vehicle is back on the road.

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Could you change the priority on those to Waiting for Vendor/Invoice?

Interesting idea! Thank you both for the input, I’ll look further into those suggestions.

I understand, I use the open p/o link sometimes - forcing the w/o to remain open but if I know it’s going to be awhile before I receive invoices, I make really good notes on the packing slips and reopen the work order when invoices arrive, and as I said, make sure I change the received date on the p/o.

The challenge with that could be what date/action triggers billing for your work orders. If you use the close date, then the full cost of the work order follows the new close date unless you are backdating your post and re-running reports. Not a big deal for transaction based billing, or if you have accounting integrations set up to extract just the new transactions. But it’s certainly tricky, and that’s before we get into the impact on FIFO/Average Pricing that @Bill is all too familiar with.

We almost need some type of pending status, allowing you to receive the parts, and post them, even allow you to soft close the lines and RO so they don’t show as open anymore, but then hold off on updating inventory and the vehicle until the invoice comes in, allowing you to do a reconciliation at that point and finish closing everything out.

we had the same issue, we are forcing our supply to ship everything with invoice only. We have a method that if we received something on a packing slip only, then we have a form made up that we fax or email them to get the invoice the same day. This have reduce our invoice need to less then .5% of invoice pending less then 2 days.

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Oh My, Josh !!! you had to go there, lol. And - you mentioned FIFO !!!

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We are in the process forcing our shippers to include all cost on the shipper like the invoice. Verses ordering and get part cost per item on the phone(PTA). i’m trying not reconcile every month other wise.