What's the best practice for managing the process of POs received, but not yet invoiced? Do we set a materiality and close open POs after a certain date? Do we research open balances to determine if the POs should be closed?

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For PO's received-not-invoiced, AP should be booking an accrual to the GL number for each line item. AP usually is responsible because these transactions are effecting the General Ledger.  If the accrual occurs more than some specified number of times (at least two), someone should research to ensure the following:

• Was the invoice paid against another PO or as a non-PO?
      — If not, request a copy of the invoice from supplier to close the PO/Rec;
      — If so, have the receipt reversed and the PO closed.

The procedure to close open PO's that have no receipt or payments are typically researched by procurement. They can have an auto-close if more than a predetermined number of months—many companies choose 14 months or more.  But these should be looked at to determine "why" the POs have been created, since they represent "committed funds" on the associated budgets.

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