Making a Purchase on Behalf of a Customer

1) Open a Customer Order

2) Enter in Sales Amount so it equals Cost of Materials

3) Generate Purchase Orders

4) Order Materials from Vendor

5) Receive Materials into Inventory

6) When Invoice is received from Vendor, Cost Inventory as normal

7) At the A/P – Change the invoice total to Zero

8) Add a Distribution line, code to an account code you create for “purchases on behalf of client” (a Liability Account), for a negative amount equal to the invoice total, thus making the net of the amount charged to “Inventory” and “Purchases on Behalf” zero.

9) When you know the invoice has been paid to the Vendor by your Customer – go into the Payment Icon in the Customer Order and enter the amount of the order into the Discount Field – make the Discount code match the G/L Distribution Code that the A/P was coded to for “purchases on behalf of client”. With the distribution from the AP in step 8 and the discount in step 9, the purchase on behalf account balance should be zero. If not, the client remitted something different than what you were billed for.

10) Keep the materials in the job on reserve status, split and cut the lines as needed for use.

11) Cut Pick Tickets as the materials go out to the jobsite and Jobcost this order when all materials are gone.