Using Entry Events with Requisition and Purchase Order Reversals and Closures

The PeopleSoft Purchasing procure-to-pay process illustrates how you can use the same entry event code to handle reversals and closures.

Entry Event Requisition Reversal and Close

When you create and source a requisition to a PO, the Commitment Control budget processor liquidates the preencumbrance amount and increases the encumbrance amount. To ensure that the entry event accounting lines that you generated with the requisition are also reversed, the predefined entry event REQPOST process contains these predefined entry event steps:

  • REQCLOSE

  • REQPOST

  • REQREVRSAL

When you create and source a requisition to a PO, the Commitment Control budget processor liquidates the preencumbrance amount for the budget and increases the encumbrance amount for the budget.

This also occurs in the entry event transactions if you add the REQREVRSAL step to the existing entry event process REQPOST. This ensures the correct setup of the debit and credit accounts so that they credit the proprietary account for preencumbrance and debit the general expense offsets.

The entry event processor also creates closure entries for a closed requisition with a portion that is not sourced to a PO. You must set up the REQCLOSE step for the REQPOST process. You set up the debit and credit accounts similarly to the REQREVRSAL step to credit the proprietary account for preencumbrance and debit the general expense offsets.

To create the reversing and closing entry event transactions for the requisition, you must run the entry event processor for the requisition after you create and budget-check the PO. You can run the entry event processor for all business units, the business unit for the requisition, or the specific requisition that you created. Select Purchasing, and then Requisition, and then Review Requisition Information, and then Accounting Entries and use the accounting entries inquiry to review all of the entries, the entry event reversals, and the closures for the requisition.

Exceptions to the Reversal and Close Processes

Here are some exceptions to using the reversal and close process:

  • Closing a PO that is sourced from a requisition.

    When you source a requisition to a PO and the PO is canceled or closed, you can leave the requisition open to source it to another PO. If you keep the requisition open, the system cannot create reversal or closure entry event transactions until you source the requisition to another PO and budget-check the PO. However, if you close the requisition, the system creates the reversal and closure entries.

  • Closing a PO without processing the entry events for the requisition.

    Because the entry event process for Purchasing uses the output from the Commitment Control processor, no changes occur to the entry event transactions until you budget-check the source document (PO or requisition) and run the entry event processor. In a rare case, you might create, budget-check and source a requisition to a PO, and then budget-check the PO and attempt to close it without running the entry event processor on the requisition. You cannot close the PO until you run the entry event processor on the requisition.

  • Copying a PO to a voucher.

    During the procurement process, you can copy a PO and its associated entry event code into a voucher. However, the entry event code setup must contain the VCHRPOST process for the system to create the entry event transactions when you post the voucher. Regardless of whether you copy the entry event code to the voucher and process it within Payables, when you budget-check the voucher, you can create reversals and closure entries for the copied PO. If the entry event code used in the distribution lines of the copied PO has the steps POREVERSAL and POCLOSE defined for the POPOST process, you can create closing and reversal entries for the PO.

  • Closing or finalizing a voucher without creating entry events for a PO.

    As with sourcing a requisition to a PO, the entry event processor uses the output from the Commitment Control processor to create entry event transactions. You cannot close or finalize a voucher that you created from a PO until you run the entry event processor on the PO. There may be a rare case where you create, budget-check, copy a PO to a voucher, and then budget-check the voucher. If you attempt to close the voucher without running the entry event processor on the PO, an error occurs requiring you to run the entry event processor on the PO.