Using Recurring Purchase Order Vouchers

To create a recurring purchase order voucher:

1. Create a contract using the Recurring PO Voucher contract process option

2. Use the Contract page (CNTRCT_HDR) to enter order and voucher contract header information (Navigation: Procurement Contracts, Add/Update Contracts, Contract).

   The system selects the Amt Only check box on the Order by Amount tab and disables it for all lines. You enter the line item information for all lines for which you want to create recurring purchase order vouchers, and enter the maximum line amount for the total amount to release for each contract line. This amount carries over to the purchase order and becomes the total amount that can be released to recurring vouchers. The gross and merchandise amounts carry over to the voucher. The Include for Release check box is deselected and unavailable for entry.

3. Upon saving the contract, the system prompts you whether to create a purchase order.

   If you select Yes, the system:

   1. Creates the new purchase order and updates the contract staging table with the PO ID.

   2. Uses the Maximum Line Amount field on the contract line for the purchase order amount.

   3. Disables the maximum line quantity for the contract line.

4. Run the Purchase Order Contracts, PO Calculations, and Create Purchase Orders processes.

   Note: For recurring purchase order vouchers, the Create Purchase Orders process does not update the amount and quantity line released fields. These fields are used only for the amounts that are released to recurring vouchers.

5. When the processes are finished, you can update the purchase order and run budget checking for the purchase order.

   When the purchase order passes budget checking and the following statuses are in place, you can generate recurring vouchers:

   • Header budget check status is Valid.

   • Header nonprorated budget check status is Valid.

   • In Process flag is set to No.

   • Distribution line status is Open.

   • Invoice Line flag is set to No.

   • Commitment Control Close flag is set to No.

     The purchase order is picked up by the PO Dispatch process and communicated to the supplier by means of the designated dispatch method.

     However, the PO status is never set to Dispatched. For this reason, when you create the recurring purchase order voucher contract and the purchase order, ensure that matching, receiving, and inspection are not required for the purchase order. If any of these actions are required for the purchase order, you cannot close the purchase order because a prerequisite for these actions is the PO status Dispatched.

6. On the Create Releases page, define the release dates, and click the Stage button to generate staged voucher releases.

   The system performs the following actions:

   1. Confirms that the following statuses are in place for the purchase order that is associated with this recurring purchase order voucher: header budget check status of Valid; header nonprorated budget check status of Valid; PO status of Active; In Process flag set to No; distribution line status of Open; Invoice Line flag set to No; and Commitment Control Close flag set to No.

   2. Verifies that the voucher line that is selected for release exists on the purchase order.

      The current line amount to release to a voucher plus the line-released amount must not exceed the maximum line amount for the contract line.

      You can click the Purchase Order link on the Contract page to view the purchase order after it is created.

   3. Copies the distribution from the purchase order.

   4. Updates the contract staging table with the associated PO ID.

7. Run the Voucher Edit/Voucher Build processes.

   When you run budget checking against the voucher, the system liquidates the associated purchase order.

   Also, you should be able to finalize a purchase order line from the voucher.

8. If you add new lines to the contract after recurring vouchers have already been released, a new release with the new contract line information is generated when you save.

9. Run the Purchase Order Contracts, PO Calculations, and Create Purchase Orders processes.

   The purchase order now contains all lines that are on the contract. When you have checked the budget for the purchase order, the budget status is valid, and you dispatch it. All of the other statuses on the purchase order are correct, and you can create recurring purchase order vouchers using this new line.

   If you cancel the purchase order, the contract will be placed on hold.