Understanding Requisition and Purchase Order Adjustments
In PeopleSoft Project Costing you can adjust requisitions and purchase orders based on the purchasing adjustment options that are set up during installation, combined with the options and parameters that you select when you run the Purchasing Adjustment Application Engine process (PC_POADJUST).
This topic discusses:
Purchasing adjustments.
Adjustment calculations.
Nonrecoverable value-added tax (VAT) amounts in purchase order reversals.
Using commitment control to generate reversals.
The Purchasing Adjustment process in PeopleSoft Project Costing can perform four types of actions:
Reverse requisitions.
Reverse purchase orders (commitments).
Close purchase orders.
Close individual purchase order lines.
The Purchasing Adjustment process can create reversal rows to reduce the outstanding commitment for individual purchase order lines or for the entire purchase order. This gives you the option of closing each purchase order line separately and creating reversal rows only for the closed or canceled lines, or creating reversal rows for an entire closed or canceled purchase order.
The Purchasing Adjustment process uses two analysis groups that are delivered as system data:
POADJ (purchasing adjustments): Identifies the mapping used by the Application Engine process for requisition and purchase order reversals.
OPENC (open commitment balance): Determines open commitment balances for closed purchase order adjustments.
Review these analysis groups for changes if any additional analysis types are configured.
This section contains tables that illustrate examples of different adjustment calculations resulting from options that are specified during installation on the Installation Options - Project Costing page and during the adjustment process.
See Installation Options - Project Costing Page.
Requisition Reversals
These tables show adjustment calculations produced by using three different requisition reversal options—REQ Rate, COM Amount, and REQ Total. In each case, a summarized reversal row is created by grouping the requisition, item, and unit of measure. The analysis type that is used in this process is specified in the Requisition Reversals field (AN_TYPE_PO_RRV) on the Installation Options - Project Costing Integration page. The Requisition Reversals field default value is RRV.
This table lists requisition and purchase order details:
|
Analysis Type |
Quantity |
Unit of Measure |
Total Amount |
Unit Price |
|---|---|---|---|---|
|
REQ |
10 |
EA |
100 |
10 |
|
COM |
5 |
EA |
35 |
7 |
This table lists an adjustment produced by using the REQ Rate option:
|
Analysis Type |
Quantity |
Unit of Measure |
Total Amount |
Unit Price |
|---|---|---|---|---|
|
RRV |
5 |
EA |
50 |
10 |
Note: If the REQ and COM rows have different units of measure, the total REQ quantity and amount is used for the reversal.
This table lists an adjustment produced by using the COM Amount option:
|
Analysis Type |
Quantity |
Unit of Measure |
Total Amount |
Unit Price |
|---|---|---|---|---|
|
RRV |
5 |
EA |
35 |
not applicable |
Note: If the COM amount exceeds the REQ amount, the total REQ amount is used. If the REQ and COM rows have different units of measure, the total COM quantity and amount is used for the reversal.
This table lists an adjustment produced by using the REQ Total option:
|
Analysis Type |
Quantity |
Unit of Measure |
Total Amount |
Unit Price |
|---|---|---|---|---|
|
RRV |
10 |
EA |
100 |
10 |
Note: The same options apply to requisitions that are reversed by inventory costs that fulfill the requisition.
Purchase Order (Commitment) Reversals
These tables show adjustment calculations produced by two different purchase order reversal options—ACT Amount and COM Rate. In each case, a reversal row is created individually for each purchase order line to retain all the detail. The analysis type that is used in this process is specified in the Purchasing Reversals field (AN_TYPE_PO_CRV) on the Installation Options - Project Costing Integration page. The Purchasing Reversals field default value is CRV.
This table lists purchase order and voucher details:
|
Analysis Type |
Quantity |
Unit of Measure |
Total Amount |
Unit Price |
|---|---|---|---|---|
|
COM |
10 |
EA |
100 |
10 |
|
ACT |
5 |
EA |
35 |
7 |
This table lists an adjustment produced by using the COM Rate option:
|
Analysis Type |
Quantity |
Unit of Measure |
Total Amount |
Unit Price |
|---|---|---|---|---|
|
CRV |
5 |
EA |
50 |
10 |
Note: If the COM and ACT rows have different units of measure, the total COM quantity and amount is used for the reversal.
This table lists an adjustment produced by using the ACT Amount option:
|
Analysis Type |
Quantity |
Unit of Measure |
Total Amount |
Unit Price |
|---|---|---|---|---|
|
CRV |
5 |
EA |
35 |
N/A |
Note: If the ACT amount exceeds the COM amount, the total COM amount is used. If the COM and ACT rows have different units of measure, the total ACT quantity and amount is used for the reversal.
Closed Purchase Order Adjustments
When you manually cancel or close a purchase order line in PeopleSoft Purchasing, the system creates a reversal row to reduce the outstanding commitment. The analysis type that is used in this process is specified in the Purchasing Closure field (AN_TYPE_PO_CCA) on the Installation Options - Project Costing Integration page. The Purchasing Closure field default value is CCA.
Example of the Procurement Process in PeopleSoft Project Costing
Assume that you create a requisition with two lines—one line for 590.00 USD and one for 750.00 USD. From the requisition you create a purchase order with two lines in the same amounts as the requisition. You receive a voucher for 615.00 USD, which corresponds to one line of the purchase order (590.00 USD) and freight (25.00 USD). You close the remaining purchase order line for 750.00 USD.
For this example, the system creates these rows in the Project Transaction table for the requisition, purchase order, requisition reversal, voucher, purchase order reversal, and purchase order closure:
|
Description |
Analysis Type |
Quantity |
Unit of Measure |
Total Amount |
|---|---|---|---|---|
|
Requisition line 1 |
REQ |
20 |
EA |
590.00 USD |
|
Requisition line 2 |
REQ |
30 |
EA |
750.00 US |
|
Requisition line 1 reversal |
RRV |
20 |
EA |
590.00 USD |
|
Requisition line 2 reversal |
RRV |
30 |
EA |
750.00 USD |
|
Purchase order line 1 |
COM |
20 |
EA |
590.00 USD |
|
Purchase order line 2 |
COM |
30 |
EA |
750.00 USD |
|
Voucher for purchase order line 1 |
ACT |
20 |
EA |
590.00 USD |
|
Voucher for freight |
ACT |
20 |
EA |
25.00 USD |
|
Purchase order line 1 reversal |
CRV |
20 |
EA |
590.00 USD |
|
Purchase order line closure |
CCA |
30 |
EA |
750.00 USD |
The Purchasing Adjustment process includes nonrecoverable VAT amounts in the calculation of purchase order reversals. Nonrecoverable VAT amounts appear as transaction rows with an analysis type of VIN (nonrecoverable VAT) on the Project Transaction table. The Payables to Project Costing Application Engine process (PC_AP_TO_PC) adds VIN rows to the Project Transaction table for vouchers that contain nonrecoverable VAT.
The Purchasing Adjustment process includes nonrecoverable VAT amounts in the calculation of PO reversal amounts. This applies only if the ACT Amount installation option is selected in the Purchase Order Reversal field (CRV_OPTN) on the Installation Options - Project Costing page. Additionally, the VIN analysis type is added to the POADJ analysis group system data.
If you use budget checking, prior to creating RRV and CRV rows the Purchasing Adjustment process evaluates Commitment Control tables to determine if a requisition reversal or commitment reversal already exists. If a reversal row already exists for the requisition or commitment, the Purchasing Adjustment process creates the reversal based on information in Commitment Control. If a reversal does not already exist for the requisition or commitment, the Purchasing Adjustment process creates RRV and CRV rows based on information in the Project Transaction table.