Purchase Order Posting to General Ledger + Xero Projects Integration
The functionality to be able to raise and approve a Purchase Order which, at the point of approval, would create a double entry in the general ledger. Specifically:
• Debit a Work in Progress (WIP) expenses account (to reflect anticipated expenditure),
• Credit a creditors account (to reflect the anticipated liability).
This would allow the PO to reflect a commitment in the accounts, enabling better management of Work In Progress and projected costs before the supplier invoice arrives.
In an ideal world, to be able to allocate the PO to a Xero Project, so that WIP and anticipated costs appear within the project reporting as well. This would give far more accurate forecasting and project-level financial visibility.
As it stands, it is understood that Xero POs are non-posting documents and only affect the ledger once a bill is created and approved. That leaves a visibility and accounting gap for committed costs — especially problematic for longer-term projects or cashflow planning.
Tristan Wheadon
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