XBert Type: Standard
Accounting Software: Xero
Country Restriction: All regions
Risk Type: Bookkeeping Risk
Business Function: Purchases
Overview
The "Purchase Orders in Draft or Awaiting Approval" XBert identifies purchase orders from the past 12 completed months that remain in a Draft or Submitted status. These unapproved purchase orders can impact cost forecasting and may indicate delays in the procurement process.
What it does
This XBert:
Scans purchase orders from the previous 12 completed months.
Identifies orders with a status of Draft or Submitted.
Groups these orders by month.
Triggers an alert for months where such orders exist.
The alert provides a count and total value of these purchase orders, aiding in reviewing pending approvals.
How it works
XBert evaluates purchase orders based on their status:
Draft: The purchase order is being created and has not been submitted for approval.
Submitted: The purchase order has been submitted and is awaiting approval.
If any purchase orders remain in these statuses for a given month, XBert generates an alert detailing the number and total value of such orders.
The alert is automatically resolved when all identified purchase orders are either:
Moved to Authorised status.
Deleted from the system.
Example/Use Case
Bruce from Dewey, Cheatem and Howe Lawyers wants to purchase a new printer for their office. The old printer is expensive to run and doesn't meet the staff requirements. Since the new printer costs more than Bruce's purchase authority, he submits a purchase order request. Due to budget constraints, the senior managers are holding off on making new purchases until the end of the month. This delay may affect the price that Bruce was able to negotiate.
Accounting software
Xero only.
Which countries it supports
All countries where Xero is used.
Processes
This XBert falls under the Bookkeeping - Purchases (AP) category.
To action:
Click on the Purchase Orders screen to review items.
Review the listed purchase orders in Draft or Submitted status.
Determine if these orders should be approved or deleted.
Update the status of each purchase order accordingly.
Once all listed orders are addressed, the XBert will auto-resolve.
Regularly reviewing and updating purchase order statuses ensures accurate cost forecasting and efficient procurement processes.