PeopleSoft Enterprise Pay/Bill Management 9.1 PeopleBook

Working with Purchase Order Tracking

This chapter provides an overview of purchase order (PO) tracking and discusses how to:

Create purchase order tracking numbers.
Review purchase order tracking numbers.

Understanding Purchase Order Tracking

PO tracking enables you to add customer purchase orders to the system with their balances and expiration dates, link assignments with these customer POs, apply the amounts billed against the PO balances, and obtain online tracking information for the PO balances.

In the Assignment component, on the Assignments - Billing page, if the Use PO Tracking check box is not selected, users can enter a customer PO number—for POs that have not been previously added to the system and for which users do not need PO balances to be tracked. In such situations, the PO number is free-form and is passed to the billing plan in PeopleSoft Contracts; from there it is sent to PeopleSoft Billing where it can be used to print on the invoice.

Note. You can associate an assignment with a PO when you create the assignment.

Although you can capture customer PO information for career assignments, the PO balance tracking feature is only available for temporary assignments.

This section discusses:

PO tracking numbers.
PO statuses.
PO linking.
PO extensions.
PO inquiries.
PO processing.
PO encumbrances.

PO Tracking Numbers

Your clients might provide you with POs authorizing specific amounts to be allocated for services rendered. Use PO tracking numbers to track these fixed-amount POs over a specified period.

You can create PO tracking numbers on the Purchase Order page, where you can capture basic information about a PO such as the start date, end date, and reference contact ID. Use the Purchase Order - Contract Lines page to link PO tracking numbers with assignments by using the contract lines with which they are associated.

There are two pages for PO tracking creation:

The Create Purchase Orders - Purchase Order page in Add mode, where you can enter new PO tracking numbers.
The Create Purchase Orders - Purchase Order page in Update/Display mode, where you can edit existing PO tracking numbers.

PO Statuses

You encounter these statuses when setting up POs.

New	Default status when first creating a PO tracking number. All fields associated with a new PO tracking number are fully editable.
Active	The system updates the PO status to Active after the Billing to Projects/Contracts Interface process (BIPCC000) runs for the first time for that PO. While in Active status, some fields become unavailable for entry. Note. You must have at least one active extension.
Exhausted	Upon depletion of the PO balance, the system updates the PO status to Exhausted, and you cannot change it manually. All extensions must be exhausted to change the status of a PO to Exhausted. If you enter a new extension for an exhausted PO, the PO becomes active again. Note. For an extension to become exhausted, it must be depleted to zero.
Expired	If a PO is past its end date (which appears on the Purchase Order page), the status changes to Expired. This occurs even if the PO has a remaining balance. You can set the PO back to Active if you change the end date.

PO Linking

You can link the PO to an assignment during creation of the PO tracking number or upon creation of the assignment. You can update this relationship from either location.

When linking the PO tracking number to a contract, your list of available contracts is limited to those with the same currency and customer ID as the PO tracking number.

When linking an assignment to an existing PO tracking number, your list of available PO tracking numbers is limited to those that have the same currency and customer ID as the assignment. If you choose a PO which is exhausted or expired, the system displays a warning message.

An open PO can be either:

A PO tracking number with at least one customer extension that has not yet been exhausted or expired.
A PO tracking number with an exhausted or expired customer extension but with an internal extension that has not been exhausted or expired.

PO Linking Rules

You can link:

A PO tracking number to multiple contract lines (assignments).
An assignment (contract line) to one PO tracking number (and its related extensions) only.

PO Linking Locations

You can associate a PO tracking number with an order:

On the Assignment page.
During the creation of the PO tracking number on the Create Purchase Orders - Contract Lines page.

PO Tracking Numbers: Unlinking and Relinking

You can:

Change the linked PO tracking number on an assignment detail at any time.

If you change an order's PO tracking number, this change is reflected in the Create Purchase Orders - Contract Lines page.
Unlink and relink orders to PO tracking numbers on the Create Purchase Orders page or the Assignments page.

Linking Terminology

Here is the relationship between terms:

A PeopleSoft Pay/Bill Management order creates one PeopleSoft Contracts contract and one PeopleSoft Project Costing project.
A PeopleSoft Pay/Bill Management assignment creates one PeopleSoft Contracts contract line and one PeopleSoft Project Costing activity.

PO Extensions

An extension is an issuance of an additional amount by the client on an existing PO. Extensions must be in the same currency as the original PO. To create an extension in a different currency, add a new PO tracking number.

The extension number is an auto-numbered, system-generated number for each amount added to the PO tracking ID.

The system sets the extension status to Active once a transaction is applied. You cannot change an extension amount or customer PO reference number once a transaction has been applied to the extension.

Extension Types

PeopleSoft Pay/Bill Management allows two types of extensions:

Customer

The default for all extension types. With the exception of the first extension (extension # = 0) (extension number), you can override this type. The first extension for a PO tracking number must always be Customer.

Once an extension type is set to Customer and saved, it cannot be reset to Internal.

A customer extension represents a new PO from the customer. The new PO can be either a new customer PO number or an extension of the original. Identify this value in the Customer PO field.

Internal

Establish an internal extension to continue processing on an expired or exhausted extension. This extension can be used as a placeholder, allowing you to continue to bill until you receive the actual customer PO.

PO Inquires

You can view information regarding PO balance tracking and filter the information based on specified search criteria such as a bill to customer, date range, and so forth. You can also define tolerance levels that trigger warning buttons to appear for PO exhaustion and expiration.

Tolerance

There are two types of tolerances for POs:

Tolerance Amount

The system compares the remaining amount minus the committed amount with the tolerance percentage multiplied by the original PO amount.

The results determine the tolerance warning.

For example, suppose that you enter a tolerance percentage of 40 and you have an original PO amount of 100,000 USD; your tolerance amount is 40,000 USD.

Tolerance Date

The system compares the number entered for the allowed tolerance days with the PO's number of remaining days. The PO's number of remaining days is the difference between the current date and the end date from the PO Entry page.

The results determine the tolerance warning.

Note. The tolerance amount should be tax inclusive. Also, the committed amount should include the encumbrance percentage held for taxes.

Tolerance Warning Indicators

The system uses these tolerance warning indicators:

(Green = normal)	Normal tolerance level.
(Yellow = below)	Below tolerance level.
(Red = exhausted)	Exhausted or expired PO tracking number.

PO Processing

When billable transactions are sent to PeopleSoft Billing, the system looks for a valid customer PO number that is associated with assignments marked Awaiting PO. If the PO is not expired or exhausted, the number is printed on the bill row for visibility on the invoice. The PO balance is updated according to the amount of the billable transaction. If the PO is expired or exhausted, the billable transaction is not sent to PeopleSoft Billing but is held until a valid PO is entered.

PeopleSoft Pay/Bill Management applies two levels of control:

If the PO is exhausted or expired, the system stops applying transactions to the PO.
If the activity exceeds the PO extension, the system stops applying transactions to the PO and enables you to provide an extension.

If you attempt to apply an exhausted or expired PO without an extension to a transaction, the system sends the transaction back to the PROJ_RESOURCE table with a billing distribution status of P, (Priced) and populates an error table. You can view the error table and use this information to initiate a new PO issuance with the customer or create an internal extension prior to running the transactions back through to PeopleSoft Billing. You can also write off the transactions by using the standard PeopleSoft functionality.

If the PO is open (not exhausted or expired), transactions should be applied to it. However, transactions are not split to apply residual PO amounts. For example, if a 50 USD amount remains on a PO and the transaction (PROJ_RESOURCE row) for 80 USD is applied, an error occurs. The PO appears fully exhausted, and its billing distribution status returns to P in the PROJ_RESOURCE table.

Transactions cannot span multiple extensions. For example, if there is a PO with 500 USD in extension #0 and 100 USD in extension # 1 and someone enters three transactions of 200 USD each, the system processes only the first two transactions. The third transaction is not processed even if the 100 USD remaining on extension # 0 plus the 100 USD on extension #1 equal 200 USD.

The after-tax invoice amount is applied against the PO tracking number. Because taxes are calculated in PeopleSoft Billing, an encumbrance percentage is established and applied to the committed amount when the transaction is first selected. Upon invoice finalization, the committed amount should be reversed and the actual invoice amount (net of taxes) is reduced from the PO amount to get the new remaining amount.

PO Encumbrances

In addition to tracking customer POs, you can enter an encumbrance percentage on the Contract Profile page to set aside a portion of the PO balance for tax purposes. The encumbrance percentage should be reserved for sales tax, use tax, inclusive value-added tax (VAT), or exclusive nonrecoverable VAT.

For example, suppose that you enter an encumbrance percentage of 10 percent on the Contract Profile page and you have a PO with these amounts:

Original PO Amount	Remaining Amount	Committed Amount	Encumbrance %
20,000 USD	1,100 USD	0 USD	10

Original PO Amount

Remaining

Amount

Committed

Amount

Encumbrance

20,000 USD

1,100 USD

0 USD

When a billable transaction of 1,000 USD is run through the Billing to Projects/Contract Interface process (CA_BI_INTFC), the PO amount is successfully applied to the transaction with the resulting totals:

Original PO Amount	Remaining Amount	Committed Amount	Encumbrance %
20,000 USD	1,100 USD	1,100 USD*	10

Original PO Amount

Remaining

Amount

Committed

Amount

Encumbrance

20,000 USD

1,100 USD

1,100 USD*

*1,000 USD is used for the transaction and 100 USD is used for the 10 percent anticipated tax.

If the invoice is finalized with an actual tax rate of 8 percent after running the Billing to Projects interface (BIPCC000), the PO amounts will be:

Original PO Amount	Remaining Amount	Committed Amount	Encumbrance %
20,000 USD	20 USD*	0 USD	10

Original PO Amount

Remaining

Amount

Committed

Amount

Encumbrance

20,000 USD

20 USD*

0 USD

* 1,100 USD – 1,000 USD – 80 USD tax = 20 USD

If there are insufficient funds in the PO to cover the transaction amount plus the encumbrance amount, the transaction goes to an error table when you run the Billing to Projects/Contract Interface process. However, if you underestimate the tax amount, the system allows an invoice to pass through, resulting in an exhausted PO. For example, if your encumbrance is 10 percent, but the actual taxes are 12 percent, the system does not error out and you will go negative on the PO:

Original PO Amount	Remaining Amount	Committed Amount	Encumbrance %
20,000 USD	(20 USD)*	0 USD	10

Original PO Amount

Remaining

Amount

Committed

Amount

Encumbrance

20,000 USD

(20 USD)*

0 USD

* 1,100 USD – 1,000 USD – 120 USD tax = –20 USD

Note. Set up your encumbrance percentage on the Contract Profile page to set aside a portion of the PO balance for tax purposes. This encumbrance percentage must not be lower than your expected tax percentage.

Common Elements Used in This Chapter

Amount Tolerance	User defined warning limits: (Red): Exhausted or expired PO tracking number. (Yellow): Below tolerance. (Green): Normal tolerance.
Bill To Customer	Customer receiving the billing invoice.
Committed Amount	Amount for the PO tracking number or extension sent to PeopleSoft Billing, before bills have been finalized. When a bill is finalized in PeopleSoft Billing, the amount for that bill is backed out of the Committed Amount field, and is then reflected in the Remaining Amount field. The committed amount for a PO tracking number includes all extensions.
Customer PO	Enter your customer's PO reference number to relate it to your internal PO tracking number. The customer PO appears on the printed invoice provided by PeopleSoft Billing. The number may differ from one extension to another.
Encumbrance Amount	An estimated amount added to the PO committed amount for estimated taxes on invoices.
Entered By	User ID of the person who created the PO tracking number.
Extension Number	System-generated number in the PO tracking ID for each amount added to the PO tracking ID. PeopleSoft Pay/Bill Management uses the extension to summarize PO activity by the original PO plus extensions. The system sets the first extension number to zero with Customer as the extension type.
PO Tracking ID	System-generated field to uniquely identify the PO. This is your internal PO number.
Remaining Amount	Total amount for the PO tracking number or extension minus any amounts finalized in billing. The remaining amount for a PO tracking number includes all extensions.

Creating PO Tracking Numbers

This section discusses how to:

Define general PO tracking information.
Edit existing PO tracking numbers.
Review PO tracking extensions.
Enter service agreement information.
Link a PO tracking number to a contract line (assignment).

Pages Used to Create PO Tracking Numbers

Page Name	Definition Name	Navigation	Usage
Purchase Order	FO_PO_HDR_ADD	Staffing, Pay/Bill Management Center, Purchase Orders, Create Purchase Orders	Define general information for a new PO.
Purchase Order	FO_PO_HDR	Staffing, Pay/Bill Management Center, Purchase Orders, Create Purchase Orders	View and edit existing PO information.
View Date History	FO_PO_DATE_INQ	Click the Date Edits History link on the Purchase Order page.	View time and date history for modifications to PO end dates. Indicates the last user who made modifications to a particular PO tracking number along with the date and time that the modifications were made.
History	FO_PO_EXTENSION	Staffing, Pay/Bill Management Center, Purchase Orders, Create Purchase Orders, History	Create, modify, or review extensions attached to a PO tracking number.
Service Agreements	FO_PO_SAR	Staffing, Pay/Bill Management Center, Purchase Orders, Create Purchase Orders, Service Agreements	Enter the service agreement requirements negotiated with the customer. This text is informational-only.
Contract Lines	FO_PO_LINK	Staffing, Pay/Bill Management Center, Purchase Orders, Create Purchase Orders, Contract Lines	Link a PO tracking number to orders and assignments through the associated contracts and contract lines.

Defining General PO Tracking Information

Access the Purchase Order page in add mode (Staffing, Pay/Bill Management Center, Purchase Orders, Create Purchase Orders).

Purchase Order Information

Currency Code	Select the PO tracking number currency. This PO currency must be equal to the currency of all linked contact lines.
Start Date	Enter the PO tracking number start date, which must be less than or equal to the end date. This field is unavailable for entry once the extension is active.
End Date	Enter the PO tracking end date.
Date Edits History	Click this link to view time and date history for changes to PO tracking numbers.

Reference

Contact ID	Displays the customer PO contact. This information is for your reference only. No data is passed into PeopleSoft Billing.
Phone Number	Displays the phone number; you can override it here. This information is for your reference only. No data is passed into PeopleSoft Billing.

Amounts

Total Amount	Enter the total amount to apply to this PO tracking number.
Customer PO	Enter your customer's PO reference number to relate it to your internal PO tracking number. The Customer PO appears on the printed invoice provided by PeopleSoft Billing.

Editing Existing PO Tracking Numbers

Access the Purchase Order page in update mode (Staffing, Pay/Bill Management Center, Purchase Orders, Create Purchase Orders).

Purchase Order Information

PO Status

Displays the status of each PO tracking number: New, Active, Expired, or Exhausted.

This field appears only if you accessed this page in Edit mode and does not appear when you are adding a new PO tracking number.

Date Edits History

Click to view time and date history for changes to the PO end date.

Reference

Add Amount

Click this button to add a new extension to this PO tracking number.

Extensions Summary

Total Amount	Displays the total amount for all extensions applied to your PO tracking number. This value is from the Purchase Order - History page.
Authorized Amt (authorized amount)	Displays the remaining amount minus the committed amount.

Reviewing PO Tracking Extensions

Access the History page (Staffing, Pay/Bill Management Center, Purchase Orders, Create Purchase Orders, History).

Extension Type

Select an extension type. Values are: Internal or Customer. Once set to Customer, the extension type cannot be reset to Internal.

Note. The first PO extension (extension # = 0) must be Customer.

Extension Data

Status	Displays the extension status, which the system sets to Active once a transaction is applied to the extension. You cannot change an extension amount or customer PO (PO reference number) once a transaction is applied to the extension.
Total Amount	Enter the total amount for this extension.
Currency Code	Displays the currency of the PO tracking number.

Reference

Contact ID and Phone Number

Displays the contact ID and phone number, which appear by default from the PO header or previous extension number, if applicable.

Entering Service Agreement Information

Access the Service Agreements page (Staffing, Pay/Bill Management Center, Purchase Orders, Create Purchase Orders, Service Agreements).

Service Agreement Requirement

Enter the service agreement requirements negotiated with the customer. This text is informational-only.

Linking a PO Tracking Number to a Contract Line

Access the Contract Lines page (Staffing, Pay/Bill Management Center, Purchase Orders, Create Purchase Orders, Contract Lines).

Link All Contract Lines

Contract	Select a contract (order) to which you will associate this PO tracking number. Your list of available contracts is limited to those with the same currency and customer ID as the PO tracking number.
	Click the Lines Fetch button to populate the PO Contract Lines grid with all contract lines (assignments) with the Awaiting PO field set to Yes.

PO Contract Lines

Contract	Select a contract (order) to which you will associate the PO tracking number.
Contract Line	Select a contract line (assignment) to which you will associate this PO tracking number. Only assignments with the Awaiting PO field set to Yes are available for selection.

Reviewing PO Tracking Numbers

This section discusses how to:

Review PO tracking numbers.
Review PO tracking number details.
Review PO applied transactions.

Pages Used to Review PO Tracking Numbers

Page Name	Definition Name	Navigation	Usage
Purchase Order Inquiry	FO_PO_INQ	Staffing, Pay/Bill Management Center, Purchase Orders, Review Purchase Orders	View PO information. You can filter information based on search criteria.
PO Details Inquiry	FO_PO_INQ_EXT	Click the PO Details button on the Purchase Order Inquiry page.	View PO extension information. You can filter information based on search criteria.
PO Applied Transactions	FO_PO_INQ_DTL	Click the PO Applied Transactions button on the PO Details Inquiry page: Amounts tab.	View information about transactions applied to a PO tracking number. You can filter information by committed, applied, and rejected transactions.

Reviewing PO Tracking Numbers

Access the Purchase Order Inquiry page (Staffing, Pay/Bill Management Center, Purchase Orders, Review Purchase Orders).

Note. The prompts for PO Tracking ID and Bill To Customer are not dependent on the values selected for the other fields on the page.

Business Unit

Select a value to filter your PO search to PO tracking numbers with a specific business unit.

Bill To Customer

Select a value to filter your PO search to PO tracking numbers with a specific bill to customer.

PO Tracking ID

Select a value to filter your PO search to a specific PO tracking ID.

Start Date and End Date

Enter a value to filter your PO tracking ID search to POs that fall within a specific date range.

Show Expired

Select to include expired PO numbers in your PO tracking ID search.

Show Exhausted

Select to include exhausted PO numbers in your PO tracking ID search.

Normal, Below Tolerance, and Exhausted

Displays ID symbols used in the Date Tolerance and Amount Tolerance fields.

Remaining Amt Tolerance % (remaining amount tolerance percentage)

Enter a percentage for your remaining amount tolerance. When you click Search, the system calculates the remaining amount percentage for each PO tracking ID that fits your search criteria, and posts the matching tolerance button in the PO search results grid.

Remaining Days Tolerance

Enter your allowed tolerance days. When you click Search, the system calculates the remaining tolerance days for each PO tracking ID that fits your search criteria, and posts the matching tolerance button in the PO search results grid.

Search

Click to populate the PO search results grid with POs matching your specified criteria.

Overview Tab

PO Tracking ID	Click to access the PO Entry page for a specific PO tracking number. If no PO tracking ID is associated, a PO Tracking ID link, instead of a PO tracking ID number, appears in this field. Click this link to access a list of available PO tracking IDs or create a new one.
Name	Displays the bill to customer name.
Start Date	Displays the start date for the PO tracking number that you entered on the PO Entry page.
End Date	Displays the end date for the PO tracking number that you entered on the PO Entry page.
Remaining Days	Displays the number of days remaining for the PO tracking number, which the system calculates based on the start and end dates entered on the PO Entry page.
Date Tolerance	Displays a symbol alerting you to the date tolerance status for this PO line.
Amount Tolerance	Displays a symbol alerting you to the amount tolerance status for this PO line.
PO Details	Click to access the PO Details Inquiry page, where you can view details about extensions attached to this PO tracking number.
Last Transaction Date	Displays the date on which the last transaction was applied to the PO tracking number. Note. The last transaction date is populated only from finalized bill lines.

Amounts Tab

Entered	Displays the total amount for this PO tracking number entered on the PO Entry page.
Amount Tolerance	Displays a symbol alerting you to the amount tolerance status for this PO line.

Reviewing PO Tracking Number Details

Access the PO Details Inquiry page (Click the PO Details button on the Purchase Order Inquiry page).

These fields apply to PO extensions instead of an entire PO.

Extension Type

Select a value to filter your PO extension search to PO numbers with a specific extension type. Values include: Customer or Internal.

Overview

PO Tracking ID	Click to access the PO Entry page for a specific PO tracking number.
Extension Type	Displays the extension type. Values are: Customer or Internal.
PO Status	Displays the status of the PO tracking number associated with this extension. Values include: New, Active, Expired, or Exhausted.
Amount Tolerance	Displays a symbol alerting you to the amount tolerance status for this extension. Note. For an extension, you can view only amount tolerances. Date tolerances do not apply to extensions.
Customer PO	Displays the customer's PO reference number related to this extension.

Amounts

Entered	Displays the total amount entered for this extension on the History page.
Amount Tolerance	Displays a symbol alerting you to the amount tolerance status for this extension.
PO Applied Transactions	Click to access the PO Applied Transactions page.

Dates

Exhaustion Date

Displays the date on which you depleted the PO balance.

Reviewing PO Applied Transactions

Access the PO Applied Transactions page (Click the PO Applied Transactions button on the PO Details Inquiry page: Amounts tab).

Business Unit

Displays the PeopleSoft Contracts business unit for your selected PO tracking ID.

PO Tracking ID

Displays the PO tracking ID that you selected on the PO Details Inquiry page: Amounts tab.

Extension Number

Displays the extension number for your selected PO tracking ID.

Options

Show Committed	Select to view committed transactions before billing occurs.
Show Applied	Select to view applied transactions after billing occurs.
Show Rejected	Select to view rejected transactions from the commit process.

Overview

Contract	Displays the contracts (orders) to which you applied the PO tracking ID.
Descr (description)	Displays the associated contract description.
Line	Displays the contract lines (assignments) to which you applied the PO tracking ID.
Descr2 (description 2)	Displays the associated contract line description.
Action	Displays the outcome of the transaction. Values include: Commit, Apply, and Reject.

PO Applied Transactions

Invoice	Displays the invoice number created by billing for the transaction. Values appear in this field only if you selected the Show Applied option.
Invoice Date	Displays the associated invoice date. Values appear in this field only if you selected the Show Applied option.
Invoice Line	Displays the invoice line number created by billing for the transaction. Values appear in this field only if you selected the Show Applied option.
Billing Plan ID	Displays the billing plan ID associated with the contract and contract line linked to the PO tracking ID.
Net Extended Amt (net extended amount)	Displays the transaction amount for the PO tracking ID.
Tax Amount	Displays the tax amount on the transaction as calculated by billing. Values appear in this field only if you selected the Show Applied option.
Encumbrance %	Displays the encumbrance percentage associated with the contract business unit that was established on the Contract Profile page. This encumbrance percentage is used to commit an amount of the PO balance for estimated tax purposes.
Encumbered Amount	Displays the committed amount calculated for the transaction based on the encumbrance percentage.
Process Instance	Displays the process instance that created the transaction.

Errors

Exception Message

Displays the outcome of error and warning transactions. You see messages here when your PO is expired or exhausted, or your encumbrance percentage is less then the tax percentage.

Business Unit	Select a value to filter your PO search to PO tracking numbers with a specific business unit.
Bill To Customer	Select a value to filter your PO search to PO tracking numbers with a specific bill to customer.
PO Tracking ID	Select a value to filter your PO search to a specific PO tracking ID.
Start Date and End Date	Enter a value to filter your PO tracking ID search to POs that fall within a specific date range.
Show Expired	Select to include expired PO numbers in your PO tracking ID search.
Show Exhausted	Select to include exhausted PO numbers in your PO tracking ID search.
Normal, Below Tolerance, and Exhausted	Displays ID symbols used in the Date Tolerance and Amount Tolerance fields.
Remaining Amt Tolerance % (remaining amount tolerance percentage)	Enter a percentage for your remaining amount tolerance. When you click Search, the system calculates the remaining amount percentage for each PO tracking ID that fits your search criteria, and posts the matching tolerance button in the PO search results grid.
Remaining Days Tolerance	Enter your allowed tolerance days. When you click Search, the system calculates the remaining tolerance days for each PO tracking ID that fits your search criteria, and posts the matching tolerance button in the PO search results grid.
Search	Click to populate the PO search results grid with POs matching your specified criteria.

Business Unit	Displays the PeopleSoft Contracts business unit for your selected PO tracking ID.
PO Tracking ID	Displays the PO tracking ID that you selected on the PO Details Inquiry page: Amounts tab.
Extension Number	Displays the extension number for your selected PO tracking ID.