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Purchase Order Statuses and Billing

Purchase Order Statuses and Billing

Every purchase order in AccuArk has two separate status tracks: a processing status that describes where the order is in the fulfillment lifecycle, and a billing status that tracks the financial state of the linked accounts payable bill. This guide explains both systems and how they interact.

Processing Statuses

The processing status reflects the physical state of the order. These are the available statuses:

StatusDescription
PlacedThe PO has been created and submitted to the vendor but nothing has shipped yet
ShippedThe vendor has shipped the entire order
InProgressThe order is actively being processed by the vendor
PartiallyShippedThe vendor has shipped some items but not all
PartiallyReceivedSome items have been received at your location but the order is not fully received
ReceivedAll ordered items have been received
BackorderedOne or more items are on backorder with the vendor
ReturnedItems have been returned to the vendor
AwaitingPaymentThe order is complete but payment has not been made
OtherA catch-all status for situations not covered by the standard options

You can manually change the processing status from the PO form to keep it current as the order progresses through your workflow.

Billing Statuses

The billing status tracks the financial side of the PO through its linked bill. These statuses are managed automatically based on payment activity and due dates:

StatusDescription
NewThe bill has just been created with no payment activity
PendingThe bill is awaiting processing
DueThe bill is due for payment based on the terms
DueSoonThe bill's due date is approaching within the near-term window
DueTodayThe bill is due today
OverdueThe bill's due date has passed without full payment
PaidThe bill has been fully paid — payments equal or exceed the balance
BalanceA partial payment has been made but a balance remains
UnpaidNo payment has been made and the bill is active
RefundedThe bill has been refunded
CancelledThe bill has been cancelled

Billing statuses are color-coded throughout the application for quick identification: green for Paid, red for Unpaid or Overdue, orange for DueSoon, blue for New, and grey for Cancelled.

Automatic Bill Creation

One of AccuArk's key design principles is that every purchase order automatically creates and maintains a linked accounts payable bill. This happens inside the same database transaction when you save a PO, so there is never a situation where a purchase exists without corresponding AP tracking.

When you save a PO:

  • If no bill exists yet, a new bill record is created linked to this PO and vendor
  • If a bill already exists (from a previous save), it is updated to reflect any changes to totals, returns, or payments
  • The bill's due date is calculated from the order date plus the payment terms (e.g., Order Date + 30 days for Net 30 terms)
  • The billing status is recalculated based on the current payment state and due date

You can view and manage bills from the vendor's Bills tab or from the PO form directly.

Making Payments

To record a payment against a PO:

  1. Open the PO and click Save & Pay, or click the Pay button if the PO is already saved
  2. The payment form opens, showing the current balance
  3. Before showing the payment form, the system checks whether the vendor has any available credits. If credits exist, you are offered the option to apply them toward this payment first.
  4. Enter the payment amount and payment details
  5. Save the payment

The payment updates the PO's paid amount and recalculates the billing status. If the payment covers the full balance, the status changes to Paid. If it is a partial payment, the status changes to Balance.

Balance Calculation

The PO balance is calculated as:

Balance = (Order Total - Returned Amount) - (Payments - Refunds and Credits)

This formula accounts for all financial activity on the PO:

  • Order Total includes items subtotal plus shipping minus discounts
  • Returned Amount reduces what you owe because you sent items back
  • Payments are what you have already paid
  • Refunds and Credits reduce the net amount paid (refunds are money returned to you; credits are applied from vendor credit balances)

A positive balance means you still owe money. A zero balance means the PO is fully settled. A negative balance means the vendor owes you money.

Handling Negative Balances

A negative balance occurs when the vendor owes you money. This can happen when:

  • You overpaid a PO and the excess exceeds any remaining balance
  • You returned items after the PO was already partially or fully paid
  • Vendor credits or refunds exceeded the outstanding balance

When a PO has a negative balance, the Manage Negative Balance button appears on the form. Clicking it presents four options:

OptionWhat It Does
Hold for LaterLeaves the negative balance on the PO for future resolution. No immediate action is taken.
Apply Vendor CreditCreates a vendor credit for the negative balance amount. The credit is added to the vendor's credit pool and can be applied to future PO payments for this vendor.
Request RefundInitiates a vendor refund request for the negative balance amount. This creates a VendorRefund record with status "Initiated" and links it to this PO.
Offset Against Other POsApplies the negative balance as a credit against other outstanding POs for the same vendor.

Choose the option that best fits your vendor relationship and accounting workflow.

Browsing Purchase Orders

The PO browser provides a list view of all purchase orders with filtering and pagination:

  • Vendor filter — Show POs for a specific vendor or all vendors
  • Status filter — Filter by processing status, billing status, or both
  • Date filter — Narrow results to a date range
  • Pagination — POs load with infinite scroll for performance on large datasets

Double-click any PO in the browser to open it in the full PO form for viewing, receiving, or payment.

Tips

  • Keep processing statuses current — Updating the processing status as orders move through your workflow helps your team know which POs need attention
  • Watch for Overdue billing statuses — Overdue bills mean missed payment deadlines. Review these regularly to maintain good vendor relationships.
  • Use vendor credits instead of refunds when possible — Vendor credits are applied instantly to future purchases, while refunds require a multi-step workflow. If you plan to continue buying from the vendor, credits are simpler.
  • Review negative balances promptly — Negative balances represent money the vendor owes you. Do not let them sit unresolved.
  • Payment terms drive due dates — Setting accurate terms on the PO ensures the billing status transitions (DueSoon, DueToday, Overdue) fire at the right times
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Please note: This article is intended as a general guide. AccuArk© is continuously improved through regular software updates, so some screens, labels, or features described here may appear slightly different in your version. If something doesn't match or you need further assistance, please don't hesitate to contact our support team.
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