Reservation Reset Mechanism

Purchase orders in the system create a reservation that is reflected in the budget balance and in the system’s financial reports. This reservation is system-based, so it does not appear in the organization’s bookkeeping system. In practice, the system is where you can produce an up-to-date report on the company’s financial status (when orders are not transferred to the ERP system).

For example, suppose we create an order for 100 NIS under the office-expenses category, with no expense recorded against it. The report will look like this:

Reservation 100
Expenses 0

Once the invoice is linked to the order, the report stays the same, because the invoice has not yet been recorded in the books.

After the invoice is recorded in the books, the report will look like this:

Reservation 0
Expenses 100

How does the mechanism that clears the reservation against the new expense work?

To avoid double-counting (Reservation 100, Expense 100), the system clears the reservation only against the invoice that was recorded in the books.

How does the system find the invoice in the company’s books?

When the entry is exported from the system to the books, a unique code is added. When the synchronization finds this code in a posted batch in the books, the reset mechanism is triggered. It is therefore very important not to delete this code from the entry. In any case, if the system finds a full match between the invoice date, invoice amount, invoice number, and supplier, the reset will also be performed — but working with the code is of course preferable.