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:
This diagram illustrates the transaction flow around 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 the product documentation for PeopleTools: Process Scheduler
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:
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:
|
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:
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 Buyer's Workbench. |
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:
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 supplier 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. If matching is not required for the purchase order (that is, the match status of the purchase order is N), then the purchase order can close even if the voucher is not posted. |
|
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.
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_LINE_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) |
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).
or
Matching is required.
The line item status is Open.
(Quantity Matched on PO_LN_SHIP_MTCH) ≥ (Quantity Ordered) x (Under Quantity Percent Tolerance).
or
Receiving is not required or optional.
The line item status is Open.
(Scheduled Due Date) ≤ (Current Date) - (Close Days).
or
Receiving is required and:
The line item status is Open.
(Last Activity Date) ≤ (Current Date) - (Close Days).
(Scheduled Due Date) ≤ (Current Date).
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).
or
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).