Commitment Control and PeopleSoft Purchasing Close Processes

If you have commitment control enabled, the Close Requisitions (PO_REQRCON) and Close Purchase Orders (PO_PORECON) Application Engine processes consider this functionality.

After you have selected your process parameters and run a close process, the process verifies whether you have enabled commitment control. If it is enabled, the process updates the budget distribution lines and the budget header on all requisitions (for PO_REQRCON) or purchase orders (for PO_PORECON) that meet the close criteria. The status on the distribution line and the header changes from V (valid) to N (not checked).

The close processes set the budget status to Not Checked and the fully liquidated flag to Yes. Run the budget processor to relieve the remaining encumbrance.

For example, you have a purchase order for 100.00 USD, but after discounts, the supplier only invoices you for 98.00 USD. Before running the Close Purchase Orders process, the remaining 2.00 USD still exists as an encumbrance. When you close the purchase order, you must liquidate the remaining encumbrance for 2.00 USD. For this reason, the Close Purchase Orders process set the budget status to Not Checked and fully liquidated flag to Yes. You then run the budget processor to relieve the remaining encumbrance. The running of the budget processor is not an automated step in the close processes.

The commitment control process creates separate closing entries in the PeopleSoft Commitment Control activity log for purchase orders and requisitions. The activity log retains and displays the complete budgetary life cycle of purchase orders and requisitions.