How are PO charges processed?

Lawson allows purchase orders to be paid with procurement cards. The benefits of doing so include paying vendors more quickly, and maximizing card rebates offered by the bank.

In addition, purchase orders that were created by sales orders or requisitions can be paid by using P-Cards.

PO charges are processed differently from ad hoc charges. Required PO charge processing involves these steps:

  • Creating and releasing the purchase order using Purchase Order Entry (PO20.1) - the purchase order is set up as a P-Card PO and assigned a P-Card number (or the P-Card number can default from vendor setup)

  • Receiving the goods - entering and releasing the receiver using PO Receiving (PO30.1)

  • Receiving the invoice from the vendor (the invoice can be received in any format, such as paper, EDI, or ERS)

  • Entering the Accounts Payable invoice using Basic Invoice (AP20.1) and releasing it

  • Matching the Accounts Payable invoice and the receipt in the Invoice Matching application

  • Sending the payment to the bank (the vendor was paid when the P-Card was used)

If you import PO-based charges from your bank, these additional steps are needed as well:

  • Importing bank charges into Lawson by running P-Card Charge Import (PD570). PO-based charges must have a purchase order number assigned to them.

  • Releasing the charges and creating an invoice by running P-Card Invoice and Release (PD130). PO-based charges are not included in the invoice created by running PD130. When an invoice is released in PD130, you can use the drill around feature to view P-Card transaction detail from Distribution Adjustments (AP30.2). The details about the charge amounts including who made the charge, where, and when the charge occurred. Once the invoice posted by Invoice Distribution Closing (AP175), drill back can also occur from GL90 to view the details and associated distributions.

  • Approving and closing the charges by running P-Card Charge Approval (PD20.1)