Converting a purchase order to a paid purchase

If you operate on a cash-or-immediate-payment basis with a supplier (rather than paying later via bill), you can convert a purchase order directly to a paid purchase (cash purchase) once you receive the goods. This records both the receipt and the payment in one step, settling the supplier obligation immediately.

Before you start

• You have a purchase order with at least one goods receipt recorded
• You are paying the supplier immediately (today or within a few days) in cash or from a bank account
• You have the supplier's payment details if paying by bank transfer, or you are paying by cash
• You have purchase creation and payment permissions (check with your administrator if unsure)

Steps

1. Go to Purchase Orders and find the purchase order with received goods. Open in Usystems

2. Open the purchase order detail page.

3. Locate the Convert to Paid Purchase button or action (usually at the top or in the document's action menu).

4. Click Convert to Paid Purchase. A new purchase form will open, pre-populated with:

   • The vendor/supplier
   • Each received line item with quantity and cost
   • The total amount due

5. Review the details:

   • Confirm the vendor is correct
   • Verify quantities match what was actually received
   • Check unit prices against your purchase order

6. Adjust amounts if needed (e.g., if the supplier applied a discount or freight charge not in the original order).

7. Select the payment method:

   • Cash (if paying by hand or petty cash)
   • Bank account (if transferring funds electronically)
   • Other payment method as configured in your system

8. Confirm the payment date (usually today).

9. Click Save and Record Payment (or similar). The purchase is created and marked as paid in one step.

Accounting impact

• Inventory (asset) increases by the received quantity and value
• Cash or bank account (asset) decreases by the payment amount
• Accounts Payable is bypassed; the transaction is settled immediately
• If there is a price variance, it posts to the appropriate variance account

Tips & common mistakes

• Cash purchases are final. Once you save, the payment is recorded; you cannot reverse a payment easily. Review carefully before saving.
• This only works for immediate payment. If you need to pay the supplier later, convert to a bill instead and pay it later.
• Verify the payment account. Make sure the cash or bank account you select has sufficient funds to cover the purchase.
• Use this for small, quick purchases. For large orders or payment terms agreements, use a purchase order → bill → payment workflow instead.