PO RAISED BUT ITEMS NOT PURCHASED (OUTSTANDING PO)

Hey Aamir!
In Tally Prime, when you raise a Purchase Order (PO) but only partially receive items (like items 1 to 5), and the rest (6 to 9) are not purchased or you want to cancel them, here’s how you can handle it:

How to Close or Cancel Pending Items in Tally PO:

1. Partially Receive and Close the Remaining Items:

   • While recording the Purchase Entry (against the PO), enter the quantity for items received (1 to 5).

   • For items not purchased (6 to 9), you can reduce the quantity in the PO itself or cancel those items.

   • You can either:

     • Modify the PO and reduce quantities for pending items to zero or delete those items from the PO if Tally allows.

     • Alternatively, create a Purchase Return or Rejection Entry for those items (if necessary).

2. Mark PO as Closed or Cancelled:

   • Tally does not provide a direct ‘close PO’ option, but once the pending items quantity is zero or PO is fully received/closed, it will not show in reports as outstanding.

3. Use ‘Cancel’ feature (if applicable):

   • In some versions, you can cancel the PO voucher for the pending items or create a separate PO cancellation voucher if supported.

4. Custom Reports:

   • While generating Balance Sheet or MIS reports, filter out pending PO or show only actual purchases.

   • You can use pending PO report to track outstanding orders separately.

Quick Tip:

• If you want pending items to not reflect in financial reports, best practice is to adjust PO quantities or cancel PO lines for items not purchased.

• Keep clear notes on cancellations for audit trail.