Accounts and Transactions That Should Not Be Carried Forward

Determine the accounts and transactions that are holding funds that should not be carried forward to the next budget cycle.

Return the funds that are held for these transactions to the surplus or funds available by taking appropriate actions on requisitions and purchase orders.

Requisitions

Commitment balances are not carried forward automatically. Any open requisition should be canceled or converted to a purchase order. Below are the suggested actions on requisition based on their status.

Requisition Header Status	Commitment Balance?	Actions
Approved	Yes, until there is an associated PO and the PO is approved	Approve the requisition if it's associated with a purchase order. Otherwise cancel, withdraw, or return it.
Canceled	No, requester canceled the requisition	None
Incomplete	No, created but not submitted	Approve, submit, and create as PO, or delete
Pending Approval	No, submitted but not approved	Approve, submit, and create as PO, or withdraw
Rejected, Returned, Withdrawn	No, rejected by approver, returned by buyer, or withdrawn by requester	None

Purchase Orders

For each requisitioning business unit, review the purchase orders that have funds reserved. A sample of the Purchase Order Balance by Control Budget report is available on Customer Connect. You can copy and modify the sample report or create your own.

The Purchase Order Balance by Control Budget report shows the following details:

• Purchase Order Obligation Balance
  • By Budget Account
  • By Budget Period
  • By Purchase Order

• Purchase Order Details

Suggested cleanup actions on Purchase orders

Purchase orders that are canceled, closed, closed for invoicing, closed for receiving, or finally closed can still hold an obligation balance if the quantity delivered is greater or less than the quantity billed, depending on how the receipt is accrued.

These are the suggested actions on Purchase Orders with period end accrual.

Purchase Order Header Status	Obligation Balance?	Actions
Canceled	Yes, when quantity delivered > quantity billed	Invoice the quantity that has been delivered but not yet invoiced.
Closed	Yes, when quantity > quantity billed or quantity billed < quantity ordered	No additional invoices or receiving are expected. If the quantity delivered exceeds the quantity billed, it should be returned. Cancel remaining quantity ordered but not billed or delivered.
Closed for Invoicing	Yes, when quantity delivered > quantity billed or quantity billed < quantity ordered	No additional invoices are expected. If the quantity delivered exceeds the quantity billed it should be returned. Cancel remaining quantity ordered not billed or delivered.
Closed for Receiving	Yes, when quantity delivered > quantity billed or quantity billed < quantity ordered	No additional receiving is expected. Invoices are needed for the quantity that has been delivered but not invoiced.
Finally Closed	Yes, when quantity delivered > quantity billed	No further receiving/invoicing or PO adjustments can be made. Any received quantity that does not have an invoice must be returned.
Incomplete	No, transaction has not been approved	Complete and approve, or delete, or ensure that the budget date is in the next year.
On Hold	Yes, transaction is approved but invoices or receipts are not allowed until the hold is removed	Remove hold.
Open	Yes, when there is remaining quantity unbilled	Can be carried forward.
Pending Approval	Yes, when the reservation point is submission	Approve or cancel.
Pending Acknowledgement	Yes, this PO is approved but is awaiting supplier approval	Cancel the PO (this will return the requisition commitment). Cancel the requisition or obtain supplier approval.
Rejected, Withdrawn	No, transaction has not been approved	If created from a requisition, ensure that the requisition has been fulfilled by another PO, or cancel the requisition.

These are the suggested actions on Purchase Orders with perpetual Receipt Accrual or Accrue on Receipt

Purchase Order Header Status	Obligation Balance?	Actions
Canceled	Yes, when quantity delivered < quantity billed	Receive and deliver the quantity that has been billed, but not yet delivered.
Closed	Yes, when quantity delivered < quantity billed or quantity billed < quantity ordered	No additional invoices or receiving are expected. If the quantity delivered is less than the quantity billed, a debit memo or credit memo should be created. Cancel remaining quantity ordered but not billed or delivered.
Closed for Invoicing	Yes, when quantity delivered < quantity billed or quantity billed < quantity ordered	No additional invoices or receiving are expected. If the quantity delivered is less than the quantity billed, a debit memo or credit memo should be created. Cancel remaining quantity ordered but not billed or delivered.
Closed for Receiving	Yes, when quantity delivered < quantity billed or quantity billed < quantity ordered	No additional invoices or receiving are expected. If the quantity delivered is less than the quantity billed, a debit memo or credit memo should be created. Cancel remaining quantity ordered but not billed or delivered.
Finally Closed	Yes, when quantity delivered < quantity billed	No further receiving/invoicing or PO adjustments can be made. Any invoiced quantity that does not have a receipt must be received and delivered.
Incomplete	No, transaction has not been approved	Complete and approve, or delete, or ensure budget date is in the next year.
On Hold	Yes, transaction is approved but invoices or receipts are not allowed until the hold is removed	Remove hold.
Open	Yes, when the remaining quantity is undelivered	Can be carried forward.
Pending Approval	Yes, when the reservation point is submission	Approve or cancel.
Pending Acknowledgement	Yes, this PO is approved but is awaiting supplier approval	Cancel the PO (this will return the requisition commitment). Cancel the requisition or obtain supplier approval.
Rejected, Withdrawn	No, transaction has not been approved	If created from a requisition, ensure the requisition has been fulfilled by another PO, or cancel the requisition.