How to create a Purchase Order

This tutorial is how to create a purchase order in Sage 50.

I am using Sage 50 version 2018 Premium.

I am in the Classic mode you can change the home screen mode by clicking the top right hand corner of the home screen.


Sage 50 Home Screen


Now if your using the Purchase Order module for the first time, decide what number you want it to star at.

I will start at number 1000. Sage 50 will save that number and advance numerically with each purchase order recorded.

Lets click on the Purchase Order & Quotes module.


Purchase order module

You can create your order.



Inputing an order


From the top – drop down the Menu beside Transaction and choose Order.

Payment Method should be pay later.

Order number is 1000

Date is todays date or you can give it a previous or future date.

Choose the supplier your ordering goods from.

If you use the inventory module and have all your inventory recorded you can choose the item or place a non-inventory item.

I have both recorded for you to see how it works and the account numbers that it will go to.

If you choose an inventory item the account number is an asset account to track your inventory.

And if the item is non-inventory the account is an expense account.

Once the order is entered, it can be emailed directly to the supplier’s email address or you can print and fax to the supplier.

click process to record the purchase order.

By processing, it will not be posted until the invoice is recorded.

You will call up the same purchase order # (1000) and convert it to an invoice.


Convert PO to Invoice

Below is the PO that is converted to an invoice.



Recoprd Converted PO



If all the items have been received you can check off the red Check Mark and fill all the back orders quantities. or enter each item that you received and leave the rest on back order.

Fill in the invoice number and invoice date.

Make sure the total matches the supplier invoice and Record.

Hope this tutorial helped.

If you have any other questions I look forward getting them



Be the first to comment - What do you think?
Posted by Nooshin - April 19, 2018 at 11:56 am

Categories: Accounts Payable Tutorial   Tags:

How to re-issue payment cheques

This tutorial will be on re-issuing cheques that have been lost in the mail or wrong amount or for what ever reason needs to be voiced and re-issued. And these cheques were written in 2017 fiscal year end and need to be re-issued in the 2018 fiscal year.


Because we are dealing with 2 fiscal years lets not affect 2017 as it has been closed and ready for completing the income tax.


lets do all the necessary adjustments in the new fiscal year. As a result these cheques will remain as outstanding at the end of 2017. But will be adjusted on the 2018 General Ledger report.


On the home screen, click on Purchases orders and quotes.

Accounts Payable Journal









From the top – you want this entry to be set as Pay Later, The invoice# will reflect the original invoice # followed by ReIssueChq. The date will be current date, Jan 2, 2018. In the description you can put a note so you know why this entry was make. do not charge GST as it has already been done when you posted the actual invoice last fiscal year. put in the amount and the account number should reflect the bank account you are trying to correct.


Accounts Payable Entry









At the top of the payable screen click on Reports and Display journal entry.

The effect of the entry is debiting the bank, so putting the funds back into the bank account and crediting accounts payable. Go ahead and process this entry.


Now you can re-issue the cheque.  Go to Payment journal and re-print the chq by using today’s date and by using the next available cheque number. click process.


You still have to call your banking institution and let them know to put a stop payment on the old cheque.


Hope this helped. Let me know if you have any other questions.





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Posted by Nooshin - January 16, 2018 at 11:25 am

Categories: Simply Accounting Tutorial   Tags:

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