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Purchase Order Open

Discussion in 'Oracle SCM & Manufacturing' started by tomloera, Feb 22, 2012.

  1. tomloera

    tomloera Forum Expert

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    Hello Friends;

    Anything help for understand how I can work with the concept of Purchase Order Open

    Thanks a loy by your help

    Regards
    Tomas
     
  2. Ramji

    Ramji Forum Guru

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    Tomloera,

    Kindly explain what you are trying to do. You cannot work with the concept of Open Purchase Order. You need to understand the PO process to be able to achieve what ever that functionality offers. Do you want to understand the implication of Open PO Status. Or while processing are you stuck in this status?

    If you are specific, I can help.
    Thanks
    Ramji
     
  3. tomloera

    tomloera Forum Expert

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    Hi Ramji;

    Basically it is you may have purchase order for a month can be working partially.
    And the order is close to time to fulfill the original amount or a date.

    Here's how it would need to work with a purchase order

    Thank you very much for your support

    Regards
    Tomloera
     
  4. Ramji

    Ramji Forum Guru

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    Dear Tomloera,

    I shall upload a doc for you. Basically you need to understand the PO process and how it works. To sum u place an order with a supplier today. It becomes an Obligation. When you submit a PO in the system, it needs to go through an approval process and flow and the status changes at each stage of the cycle. Open PO means in simple language, the PO is available for performing all possible actions in the flow.

    You can continue to receive goods against this po in instalments. The supplier will only invoice you for the goods he actually supplied and you will account for the invoice in your AP system after matching the PO/Receipt to the Invoice. You will there need to understand how the accounting works and study how the status changes throughout the cycle from Ordering to accounting for the invoice

    Each business scenario will be covered by the functionality available in Oracle PO, Partial Receiving, Matching Options, approval setup etc. I shall upload during the weekend.
    thanks
    Ramji
     
  5. tomloera

    tomloera Forum Expert

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    Ramji;

    Thanks a lot by your help
    Regards
    Tomloera
     
  6. Ramji

    Ramji Forum Guru

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    Tomloera,

    Basically you need to understand the PO approval work flow. Open status means you can perform all possible actions on the PO at header, lines and shipment levels. I append below notes for 11i as a started. You can go through the documentation for R12 once you are comfortable with the concepts. First understand the process flows and then look into the status and logically figure out what does each functionality designed serve?
    1. Workflow for a PO can be seen from the navigation given below.
    Purchasing > Purchase Orders > Purchase Order Summary > Inquire (M) > View Approval through workflow.

    2. Use the Control Documents window to control requisitions and requisition lines as well as purchase orders, purchase order lines, releases, and shipments. For requisitions, the only available actions are Cancel and Finally Close. Only control options appropriate for the selected requisition or purchase order are displayed in the Actions field. The following control actions are available in this window:

    Cancel - If you use on-line requisitions, and you cancel a purchase order you did not receive or pay at all, Purchasing cancels the requisition lines associated with the purchase order if the Cancel Requisitions check box is selected. If the Cancel Requisitions check box is not selected, the requisition lines are not cancelled and are returned to the pool of available requisitions. You can then assign these requisition lines to new purchase orders to fulfill your requestors' needs. See: Defining Control Options.

    If you use on-line requisitions with quantity or amount based line types, and you cancel a partially received purchase order line, Purchasing recreates requisition lines for the remainder of the maximum of the billed or received quantity you have not received. You can assign these requisition lines to a new purchase order line to fulfill the requestor's needs. See: Autocreate Document Options. If you have implemented Oracle Services Procurement and use on-line requisitions with rate or fixed price line types, no requisition lines are recreated.

    If you are using encumbrance or budgetary control, Purchasing automatically creates negative debit entries in your general ledger system to cancel the encumbrance that corresponds to the purchase order header, lines, or shipments you are cancelling, using the action date you specify in Action Date. Purchasing recreates requisition encumbrances for the requisition lines you used to create the purchase order if the Cancel Requisitions check box is not selected. Purchasing uses the distributions from your cancelled purchase order to recreate the encumbrance for your requisition. See: Budgetary Control and Online Funds Checking.

    After you partially or completely cancel a purchase order, you need to inform your supplier of the cancellation. You can communicate purchase orders or releases you partially or completely cancelled. Purchasing automatically inserts a cancellation message on the purchase order, purchase order line, purchase order shipment, or release you cancelled.

    You can source a requisition line from a line in the Prior Purchases region of the Supplier Item Catalog window. (A line in the Prior Purchases region corresponds to a purchase order line.) However, Purchasing does not automatically update the corresponding sourcing information if you cancel a blanket agreement or agreement line with which you source requisition lines. If you cancel a blanket agreement or agreement line, be sure to update the corresponding information in the Requisition Templates or the Sourcing Rules window. See: Defining Requisition Templates. See: Automatic Sourcing.

    Close - You can close at the header, release, line, and shipment levels.

    Close for Invoicing - You can close for invoicing at the header, release, line, and shipment levels. Note that if you close for invoicing a purchase order header that is currently open, Purchasing sets the status of all purchase order shipments to Closed for Invoicing, but the purchase order lines and header remain open. This status will not prevent you from matching an invoice to the purchase order or to the receipt.

    Close for Receiving - You can close for receiving at the header, release, line, and shipment levels. Note that if you close for receiving a purchase order header that is currently open, Purchasing sets the status of all purchase order shipments to Closed for Receiving, but the purchase order lines and header remain open.

    Finally Close - You can final close at the header, release, line, and shipment levels. Purchasing automatically closes fully billed and received purchase orders. However, to prevent further actions on the purchase order, you should use this window to final close purchase orders. Finally Close prevents modifications to the purchase order. Also, if you are using encumbrance or budgetary control, Finally Close automatically creates credit encumbrance journal entries in your general ledger system to reverse the encumbrance that corresponds to the purchase order header, lines, or shipments you are closing, using the action date you specify in Action Date. See: Budgetary Control and Online Funds Checking.

    Freeze - You can freeze only at the header and release level. You freeze a purchase order when you want to prevent any future modifications to the purchase order. When you freeze a purchase order, you can still receive and pay for goods you already ordered. If you want to prevent future receipt or matching invoices against this purchase order, cancel or final close the purchase order instead.

    On Hold - You can place a purchase order on hold only at the header level. This unapproves the purchase order while preventing printing, receiving, invoicing, and future approval until you remove the hold.

    Open - You can open at the header, line, and shipment levels.

    Open for Invoicing - You can reopen for invoicing at the header, line, and shipment level.

    Open for Receiving - You can reopen for receiving at the header, line, and shipment level.

    Release Hold - You can release a hold only at the header level.

    Unfreeze - You can unfreeze only at the header and release levels.
     
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  7. tomloera

    tomloera Forum Expert

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    Ramji;

    Thank you very much for your support, I really appreciate your help

    With this information I have a clearer concept

    Regards
    Tomas
     
  8. Ramji

    Ramji Forum Guru

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    Tomas,

    You are most welcome.I will upload more training stuff for you. I plan to upload complete test scripts.
    cheers
    Ramji
     
  9. fetchflow

    fetchflow Guest

    Hi,
    When a company buys good and services from suppliers, it issues a purchase order (PO) for the purchase. The PO acts as a contract to buy and contains specific price, quantity, payment and delivery terms.
    An open POs status changes based on the purchase activity associated with the PO. The PO can change from open to closed, canceled, back-ordered, incomplete and more depending on the system used.