PeopleSoft Enterprise Purchasing 9.1 PeopleBook

Closing Purchase Orders

This chapter provides an overview of the Close Purchase Orders process and discusses how to:

Close purchase orders.
Reopen purchase orders.

Understanding the Close Purchase Orders Process

Use the Close Purchase Orders Application Engine process (PO_PORECON) to close qualifying purchase orders that you no longer need to modify. When you run the Close Purchase Orders process, it reconciles various purchase-order-related settings and statuses to change the status of applicable purchase orders to C (completed).

To perform the Close Purchase Orders process you need to have the authorization to do so. To enable users to be able to close purchase orders, you must establish their authorizations using the Procurement - Purchase Order Authorizations page. Using this page you can give the user the ability to close purchase orders as well as override non-qualified purchase orders for close.

The benefit of this status change is that completed purchase orders no longer appear in your list of available purchase orders when you access purchase order pages in update and display mode. These completed purchase orders are also removed from the view in many of the other situations in which the available options have been set to exclude completed or canceled purchase orders. Removing these purchase orders improves system performance and decreases the time required to find purchase orders that you need to modify.

If commitment control is enabled, the Close Purchase Orders process resets the budget header and line statuses, and sets the close flags (KK_CLOSE_FLAG and PROCESS_MANUAL_CLOSE) on the purchase order distributions. This allows the Commitment Control Budget Processor process (FS_BP) to liquidate encumbrance budget amounts for outstanding purchase orders.

Although the Close Purchase Orders process is optional and you can set it to run at any time, running the process at the end of each month helps to improve the efficiency of your purchase order process. You can schedule this process to run automatically by using the PeopleSoft Process Scheduler or initiate it manually by using the Close Purchase Orders page.

The Close Purchase Orders process occurs at the end of the PeopleSoft Purchasing transaction life cycle. To understand the Close Purchase Orders process, it is important to know where the process fits in the PeopleSoft Purchasing transaction life cycle. This diagram illustrates the transaction flow around the Close Purchase Orders process:

Transaction flow leading to the Close Purchase Orders process

When you run the Close Purchase Orders process from the Close Purchase Orders page, you have three processing options on the Process Scheduler Request page:

Select Close Purchase Order SQR Report (POPO008) to produce the Close Purchase Order report.
Select Close Purchase Orders Application Engine process (PO_PORECON) to run the Close Purchase Orders process.
Select Close Purchase Orders multiprocess job (PO_POREP) to run the Close Purchase Orders process and produce the Close Purchase Order report.

If necessary, you can run the Purchase Order Reopen process (PO_POREOPEN) to undo the changes made by the Close Purchase Orders process.

See Also

Reopening Purchase Orders

Using Commitment Control

Enterprise PeopleTools PeopleBook: PeopleSoft Process Scheduler

Defining Purchase Order User Authorizations

Purchase Order Close Criteria

To understand how the Close Purchase Order process functions, you must know the criteria that the process uses to close a purchase order. The process checks the settings and statuses of several criteria to determine that a purchase order is ready to be closed and that it does not need to be accessed for modifications in the future.

These tables detail the business-related criteria verified by the Close Purchase Orders process and the settings and statuses that must be met to qualify for closure. Each of the criteria discussed must be met for the Close Purchase Orders process to close a purchase order:

Business-Related Criteria	Qualifying Setting or Status
Close Days The Close Days field on the Purchasing Definition - Business Unit Definition page specifies the number of days beyond a purchase order's last activity date during which the purchase order cannot be closed. The close days value creates a grace period during which you can change the purchase order before the purchase order closes. If you leave the Close Days field blank, the system uses zero close days. Note. The Close Days value that you define for the business unit is for purchase order reconciliation and has no relationship to the close days value on the Close Short Run control pages.	The Close Purchase Orders process verifies that the number of close days defined for the purchase order's purchasing business unit has elapsed. The system adds the value for the Close Days field to the last activity date to determine whether the required number of grace period days has passed. For example, for a Close Purchase Orders process run date of August 31, 2006, suppose that the last activity date for the purchase order is August 25, 2006 and the value for the Close Days field is set to five days. In this example, the process closes the purchase order. You can view the value in the Close Days field by writing a Structured Query Language (SQL) statement against PS_BUS_UNIT_TBL_PM.
Cancel Days The Cancel Days field on the Purchasing Definition - Business Unit Definition page specifies the number of days beyond a purchase order last activity date during which the canceled purchase order cannot be closed. The value for the Cancel Days field creates a grace period during which a canceled purchase order cannot be closed. If you leave the field blank, the system uses zero cancel days. Cancel days is a business unit attribute; therefore, the system omits the calculation for the Cancel Days field when the Close Purchase Orders page specifies a specific purchase order number.	The value in the Cancel Days field works the same way in which the value in the Close Days field does but for canceled purchase orders. The Close Purchase Orders process verifies that the number of cancel days defined for the purchase orders purchasing business unit has elapsed. The system adds the value for the Cancel Days field to the last activity date to determine whether the required number of grace period days has passed. You can view the value in the Cancel Days field by writing an SQL statement against PS_BUS_UNIT_TBL_PM. Note. The Close Purchase Order process does not change the line status from Canceled to Complete. However, it does change the header status to Complete. The purchase order line status remains Canceled, so that you can distinguish canceled lines from closed lines.
Close PO Under Percent Tolerance The Close PO Under Percent Tolerance value defines the acceptable percentage of the total purchase order quantity or amount that can be outstanding while still allowing the purchase order to be closed. This setting enables the Close Purchase Orders process to close a purchase order even if the received quantities or amounts are less than the purchase order quantity or amount. The Close Purchase Orders process compares the tolerances based on quantity or amount according to the distribution method on the purchase order. This value is set at these levels: The business unit specific attributes level on the Purchasing Attributes - Purchasing Controls page. The purchasing attributes level when using the Item Master enterprise integration point on the Data Definition Maintenance - PO Attributes - Purchasing Controls 2 page. The item categories level on the Item Categories - Category Definition 2 page. Note. These system levels are ordered from specific to generic. The percent tolerance value set at a more specific level in the hierarchy overrides the setting at the more generic level.	The Close Purchase Orders process uses these calculations to verify that the Close PO Under Percent Tolerance value has been met so that the process can close the purchase order: (Quantity Received) ≥ (Quantity Ordered) - ((Quantity Ordered) x (Percent Tolerance)) (Amount Received) ≥ (Amount Ordered) - ((Amount Ordered) x (Percent Tolerance))

Business-Related Criteria

Qualifying Setting or Status

Close Days

The Close Days field on the Purchasing Definition - Business Unit Definition page specifies the number of days beyond a purchase order's last activity date during which the purchase order cannot be closed. The close days value creates a grace period during which you can change the purchase order before the purchase order closes. If you leave the Close Days field blank, the system uses zero close days.

Note. The Close Days value that you define for the business unit is for purchase order reconciliation and has no relationship to the close days value on the Close Short Run control pages.

The Close Purchase Orders process verifies that the number of close days defined for the purchase order's purchasing business unit has elapsed. The system adds the value for the Close Days field to the last activity date to determine whether the required number of grace period days has passed.

For example, for a Close Purchase Orders process run date of August 31, 2006, suppose that the last activity date for the purchase order is August 25, 2006 and the value for the Close Days field is set to five days. In this example, the process closes the purchase order.

You can view the value in the Close Days field by writing a Structured Query Language (SQL) statement against PS_BUS_UNIT_TBL_PM.

Cancel Days

The Cancel Days field on the Purchasing Definition - Business Unit Definition page specifies the number of days beyond a purchase order last activity date during which the canceled purchase order cannot be closed. The value for the Cancel Days field creates a grace period during which a canceled purchase order cannot be closed. If you leave the field blank, the system uses zero cancel days. Cancel days is a business unit attribute; therefore, the system omits the calculation for the Cancel Days field when the Close Purchase Orders page specifies a specific purchase order number.

The value in the Cancel Days field works the same way in which the value in the Close Days field does but for canceled purchase orders. The Close Purchase Orders process verifies that the number of cancel days defined for the purchase orders purchasing business unit has elapsed. The system adds the value for the Cancel Days field to the last activity date to determine whether the required number of grace period days has passed.

You can view the value in the Cancel Days field by writing an SQL statement against PS_BUS_UNIT_TBL_PM.

Note. The Close Purchase Order process does not change the line status from Canceled to Complete. However, it does change the header status to Complete. The purchase order line status remains Canceled, so that you can distinguish canceled lines from closed lines.

Close PO Under Percent Tolerance

The Close PO Under Percent Tolerance value defines the acceptable percentage of the total purchase order quantity or amount that can be outstanding while still allowing the purchase order to be closed. This setting enables the Close Purchase Orders process to close a purchase order even if the received quantities or amounts are less than the purchase order quantity or amount.

The Close Purchase Orders process compares the tolerances based on quantity or amount according to the distribution method on the purchase order.

This value is set at these levels:

The business unit specific attributes level on the Purchasing Attributes - Purchasing Controls page.
The purchasing attributes level when using the Item Master enterprise integration point on the Data Definition Maintenance - PO Attributes - Purchasing Controls 2 page.
The item categories level on the Item Categories - Category Definition 2 page.

Note. These system levels are ordered from specific to generic. The percent tolerance value set at a more specific level in the hierarchy overrides the setting at the more generic level.

The Close Purchase Orders process uses these calculations to verify that the Close PO Under Percent Tolerance value has been met so that the process can close the purchase order:

(Quantity Received) ≥ (Quantity Ordered) - ((Quantity Ordered) x (Percent Tolerance))
(Amount Received) ≥ (Amount Ordered) - ((Amount Ordered) x (Percent Tolerance))

This table details the record-level criteria that must be met for a purchase order to qualify for closure:

Record-Level Criteria	Qualifying Setting or Status
PO Status	The Close Purchase Orders process verifies that the purchase order has a status of D (dispatched) or X (canceled). Statuses of O (open) and A (approved) enable the process to close a purchase order when other applicable criteria are met. The other criteria that must be met are: Receiving is not required for the purchase order. Matching is not required for the purchase order. The purchase order schedule date plus close days has already passed (last activity date <= system date). Statuses of I (initial), PA (pending approval), and C (completed) do not enable the process to close the purchase order. You can view the purchase order status by writing an SQL statement against PS_PO_HDR.
Activity Date The system updates this date on the purchase order when you create a change order and save your work, and also when you cancel a purchase order through the purchase order Reconciliation Workbench page.	The Close Purchase Orders process uses these calculations to determine whether the purchase order's last activity date enables the process to close the purchase order: (Activity Date) ≤ (Current Date) - (Close Days). (Activity Date) ≤ (Current Date) - (Cancel Days). You can view the activity date value by writing an SQL statement against the PS_PO_HDR record and looking at the ACTIVITY_DATE field.
Match Status	The Close Purchase Orders process verifies that, if matching is required for the purchase order, the match status of the purchase order is M (matched), N (no match is required), P (partially matched), and T (to match). In cases where the MATCH_STATUS_PO and MATCH_STATUS_LN_PO never reaches a status of M (matched), the Close Purchase Orders process checks the purchase order schedule (PO_LN_SHIP_MTCH) for quantity matched. A matching status of P (partially matched) does not qualify the purchase order for closure. A purchase order with a header match status of T (to match) will be closed by the Close Purchase Orders process if the match status on the associated lines is M (matched) if matching is required. When matching is required on a purchase order, there can be several vouchers against a purchase order. One of the vouchers might be matched, but the status (MATCH_STATUS_PO) on the purchase order remains P (partially match) until the final voucher is matched. The purchase order status then changes to M (matched). The Close Purchase Orders process considers a purchase order fully matched and available for closure when the quantity ordered for each line on the purchase order is less than or equal to the total quantity received and matched. You can view the match status value by writing an SQL statement against the PS_PO_HDR table and viewing the value in the MATCH_STATUS_PO field.
Distribution Line Status	The Close Purchase Orders process verifies that the distribution line statuses for the purchase order are O (open), P (processed), or X (canceled).
Amount Only	The Close Purchase Orders process checks to see whether the Amount Only check box (AMT_ONLY_FLG) is selected for the purchase order line. If the purchase order line is to be received by amount only, the Close Purchase Orders process sums up the merchandise amounts in vendor currency recorded in receipt transactions and compares the total to the merchandise amount on the purchase order to determine whether the purchase order has been fully received.
Receiving Required setting	The Close Purchase Orders process verifies whether the Receiving Required field is Receiving is Required for the purchase order line on the Maintain Purchase Order - Details for Line page. The process uses this setting in conjunction with the due date value at the record level to determine whether it can close the purchase order. You can view the receiving required value by writing an SQL statement against the PS_PO_LINE.RECV_REQ field.
Due Date	The Close Purchase Orders process uses this calculation to verify that the due date on the purchase order schedule line (PO_LINE_SHIP.DUE_DT) is less than or equal to the calculated close date: (Due Date)≤ (Current Date) - (Close Days) The Close Purchase Orders process verifies that the due date value for purchase orders when the Receiving Required field is Receiving is Optional or Do Not Receive. This includes PeopleSoft Order Management direct shipments.
Voucher Status	The Close Purchase Orders process verifies that associated vouchers have been posted, deleted, or closed. This requirement exists whether or not the purchase order requires matching.
Entry Event Status	If you enable commitment control, the Close Purchase Orders process verifies that you have checked the row for entry events.

Additionally, you can view purchase order schedule information (PS_PO_LINE_SHIP), purchase order distribution information (PS_PO_LINE_DISTRIB), and purchase order receiving information (PS_RECV_LN_DISTRIB) by writing an SQL statement against the mentioned tables.

Entering Purchase Order Line Details

Establishing PeopleSoft Purchasing Business Units

Defining Purchasing Item Attributes

Editing Data Errors in the Item Loader Staging Tables

Describing Close Purchase Order Changes to Purchase Order Statuses

The Close Purchase Orders process can close purchase order distribution lines, schedules, lines, and header in intervals. Distribution lines close first, followed by the schedules, lines, and finally the header. Therefore, it is possible to have a distribution line close before the rest of the purchase order.

For example, suppose that a purchase order contains 20 lines, each with two schedules. When the necessary distributions close, the schedule qualifies for closure. Once the two schedules close for a line, the line closes. When the 20 lines close, the purchase order closes.

If a purchase order meets the criteria described in the previous tables, the Close Purchase Orders process updates purchase order statuses as shown in these tables:

PO Distribution Line (PO_LN_DISTRIB)	Updated Status
BUDGET_LINE_STATUS (if commitment control is used)	N (not budget checked)
KK_CLOSE_FLAG (if commitment control is used)	Y (yes)
PROCESS_MAN_CLOSE	Y (yes)
DISTRIB_LN_STATUS	C (completed)
PC_DISTRIB_STATUS	N (no)
PEG_STATUS	CANCELED (if the purchase order had no activity.) COMPLETE (if the purchase order was either partially or fully received, vouchered, and matched.)

PO Distribution Line (PO_LINE_DIST_NP)	Updated Status
BUDGET_LINE_STATUS (if commitment control is used)	N (not budget checked)
KK_CLOSE_FLAG (if commitment control is used)	Y (yes)
PROCESS_MAN_CLOSE	Y (yes)
DISTRIB_LN_STATUS	C (completed)

PO Schedule	Updated Status
CANCEL_STATUS	C (completed)

PO Line	Updated Status
CANCEL_STATUS	C (completed)

PO Header	Updated Status
PO_STATUS	C (completed)
ACTIVITY_DATE	Run Date
BUDGET_HDR_STATUS (if commitment control is used)	N (not budget checked)
BUDGET_HDR_STS_NP (if commitment control is used)	N (not budget checked)
RECV_STATUS	R (fully received)

Purchase Order Closure and the Fully Received Status

When you receive goods against a dispatched purchase order, the received status changes to P (partially received). The Close Purchase Orders process changes the purchase order line item O (open) status to R (fully received), if any of these sets of criteria are met for a purchase order:

Matching is not required.
The line item status is Open.
(Quantity Matched) ≥ (Quantity Ordered).

Matching is required.
The line item status is Open.
(Quantity Matched on PO_LN_SHIP_MTCH) ≥ (Quantity Ordered) x (Under Quantity Percent Tolerance).

Receiving is not required or optional.
The line item status is Open.
(Scheduled Due Date) ≤ (Current Date) - (Close Days).

Receiving is required and:
The line item status is Open.
(Last Activity Date) ≤ (Current Date) - (Close Days).
(Scheduled Due Date) ≤ (Current Date).

Purchase Order Closure and the Complete Status

The Close Purchase Orders process closes a dispatched purchase order and sets its status to Complete if any of these sets of criteria are met for a purchase order:

The purchase order is dispatched.
The purchase order matched status is either Matched or Not Required.
Receiving is required.
All line items are fully received.
(Last Activity Date) ≤ (Current Date) - (Close Days).

The purchase order is dispatched.
The purchase order matched status is either Matched or Not Required.
Receiving is not required or optional.
(Shipment Due Date) ≤ (Current Date).
(Last Activity Date) ≤ (Current Date) - (Close Days).

Closing Purchase Orders

This section discusses how to run the Close Purchase Orders process.

Note. You can use the purchase order Reconciliation Workbench to preview the results of the Close Purchase Orders process on selected transactions. After you have confirmed that the process produces the results that you want, you can run the Close Purchase Orders process from the purchase order Reconciliation Workbench.

See Also

Using the Buyer's Workbench

Page Used to Close Purchase Orders

Page Name	Definition Name	Navigation	Usage
Close Purchase Orders	RUN_PORECON	Purchasing, Purchase Orders, Reconcile POs, Close Purchase Orders	Run the Close Purchase Orders multiprocess job, or the Close Purchase Orders process and produce the Close Purchase Order report.

Running the Close Purchase Orders Process

Access the Close Purchase Orders page (Purchasing, Purchase Orders, Reconcile POs, Close Purchase Orders).

Note. When a purchase order has an authored contract document associated to it, certain changes that occur when closing the purchase order could affect the authored document. You should contact the contract specialist or the buyer in case they need to update the authored document.

Process Request Parameters

PO Post Run Option

Determines which purchase orders are selected for the Close Purchase Orders process. Values are:

1 Bus Unit (one business unit): Reconciles all purchase orders within a single business unit. If you select this value, you may enter business unit and ChartField criteria.

1 Document: Reconciles a single purchase order within a single business unit. If you select this value, you may enter business unit, purchase order, and ChartField criteria.

All BUs (all business units): Reconciles all purchase orders within all business units. If you select this value, all other fields on the page are unavailable for entry.

ChartField Criteria

Use the ChartField Criteria group box to select purchase orders for processing based on ChartField values. This option is useful if you are using commitment control and want to process purchase orders based on ChartField values.

Accounting Date for Action

Displays the accounting date for action, which is used to determine the open period or allowable open date range for budget checking a purchase order when you are using commitment control.

In addition, whether you are using commitment control or not the system updates the accounting date with this date for the purchase orders closed by the Close Purchase Orders process.

Use Current Date as Acct. Date

Select this check box if you want to use the current date as the accounting date during the close process. This check box appears only if you are using commitment control.

Update Budget Date Equal to Accounting Date

Select this check box if you want to update the budget date to be equal to the accounting date. This check box appears only if you are using commitment control.

See Also

POPO008 - Close Purchase Order

Reopening Purchase Orders

This section provides an overview of the Purchase Order Reopen process and discusses how to run the Purchase Order Reopen process.

Understanding the Purchase Order Reopen Process

The Purchase Order Reopen Application Engine process (PO_POREOPEN) gives you the ability to reopen purchase orders. To perform the Purchase Order Reopen process you need to have the authorization to do so. To enable users to be able to reopen purchase orders, you must establish their authorization using the Procurement - Purchase Order Authorizations page. Using this page you can give the user the ability to reopen purchase orders.

Using the Purchase Order Reopen process you can reopen purchase orders by:

Undoing changes made by the Close Purchase Orders process.

The process reverses the effects of the Close Purchase Orders process on the most recently processed group of purchase orders.
Reopening any purchase order at any time.

This process enables to reopen a range of purchase orders, a specific purchase order, or all purchase orders associated with a business unit.

Note. A purchase order that has been canceled at the header level, is not eligible for reopening.

Note. Purchase orders that were closed prior to the PeopleSoft Enterprise Purchasing 9.0 release are not reopened using this functionality.

Running this process resets several values associated with the purchase order. The Purchase Order Reopen process will reset these values:

PO_HDR	Updated Value After Reopen
PO_STATUS	Value saved at close
ACTIVITY_DATE	Current Date
BUDGET_HDR_STATUS (if commitment control used)	N
KK_TRAN_OVER_FLAG (if commitment control used)	N
BUDGET_HDR_STS_NP (if commitment control used)	N (if there are non-prorated distributions)
RECV_STATUS	Value saved at close
BACKORDER_STATUS	Value saved at close

PO_LINE	Updated Value After Reopen
CANCEL_STATUS	Value saved at close

PO_LINE_SHIP	Updated Value After Reopen
CANCEL_STATUS	Value saved at close

PO_LINE_DISTRIB	Updated Value After Reopen
BUDGET_LINE_STATUS (if using commitment control)	Value saved at close
KK_CLOSE_FLAG	Value saved at close
PROCESS_MAN_CLOSE	N
DISTRIB_LN_STATUS	Value saved at close
PC_DISTRIB_STATUS	N (if PeopleSoft Project Costing is installed)
PEG_STATUS	Value saved at close (for non-inventory distributions where complete quantity < peg quantity). Pegs that were canceled or completed will be reopened. The Purchase Order Reopen process will reopen the pegs and set the PEG_STATUS to Open..

PO_LINE_DIST_NP	Updated Value After Reopen
BUDGET_LINE_STATUS (if commitment control used)	Value saved at close
KK_CLOSE_FLG	Value saved at close
PROCESS_MAN_CLOSE	N
DISTRIB_LN_STATUS	Value saved at close

Page Used to Reopen Purchase Orders

Page Name	Definition Name	Navigation	Usage
Reopen POs	RUN_PO_REOPEN	Purchasing, Purchase Orders, Reconcile POs, Reopen POs	Initiate the Purchase Order Reopen process.

Running the Purchase Order Reopen Process

Access the Reopen POs page (Purchasing, Purchase Orders, Reconcile POs, Reopen POs).

Note. When a purchase order has an authored contract document associated to it, certain changes that occur when reopening the purchase order could affect the authored document. You should contact the contract specialist or the buyer in case they need to update the authored document.

Last Close PO Run	Select this option if you want to reopen the purchase orders that were closed during the last run of the Close Purchase Orders process. When you select this option, the Reopen PO Selection Criteria group box is not available.
Select POs to be Reopened (select purchase orders to be reopened)	Select this option if you want to reopen any purchase order that has already been closed. After you select this option, enter the purchase order or purchase orders you would like to reopen in the Reopen PO Selection Criteria group box.

Reopen PO Selection Criteria

Reopen Request	Select the reopen request option. Values are: Range of Documents: Select if you want to reopen a range of purchase orders. After you select this option, select the purchase order range using the Purchase Order and To fields. Specific Business Unit: Select if you want to reopen the purchase orders associated with a specific business unit. After you select this option, select the business unit using the Business Unit field. Specific Document: Select if you want to reopen a specific purchase order. After you select this option, select the purchase order using the Purchase Order field.
PO Date	Select a purchase order date option. Values are: All: Select if you want to reopen purchase orders for all purchase order dates. Range: Select if you want to reopen purchase order for a certain date range. After you select this option, select the date range using the From and To date fields next to this field. Value: Select if you want to reopen purchase orders for a specific date. After you select this option, select the date using the date field next to this field.
Activity Date	Select an activity date option. Values are: All: Select if you want to reopen purchase orders for all activity dates. Value: Select if you want to reopen purchase orders for a specific date. After you select this option, select the date using the date field next to this field.
Vendor ID	Select the vendor ID. Purchase orders associated with that vendor will be reopened.
Buyer	Select the buyer. Purchase orders associated with that buyer will be reopened.
PO Reference	Enter the purchase order reference. Purchase orders associated with that purchase order reference will be reopened.

Accounting Date Options

Open with Specified Accounting Date	Select this option if you want to reopen the purchase orders using the accounting date you specify. The current date appears by default in the date field but you can override it if you choose. This field only appears if you are using commitment control.
Open with Existing Accounting Date	Select this option if you want to reopen the purchase orders using the existing accounting date on the purchase orders. This field only appears if you are using commitment control.

Additional Criteria

Reopen Associated Requisitions ?

Select this check box if you want the Purchase Order Reopen process to reopen the requisition lines that are associated with purchase orders you are requesting to be reopened.

For example, lets say you have a requisition that has five lines. You then create a purchase order associated to just one of the requisition lines. Then you close the purchase order. When you reopen the purchase order and if this check box is selected, the system will reopen just the one requisition line associated with the purchase order not the other requisition lines.

If you are using commitment control, this check box must be selected.