Cancel PO Line Tied To Returned Requisition Line May Result In Encumbrance Accounting Problems
(Doc ID 1264257.1)
Last updated on FEBRUARY 03, 2019
Applies to:Oracle iProcurement - Version 188.8.131.52 and later
Information in this document applies to any platform.
The application allows users to Cancel PO Line tied to Returned Requisition line, and this may result in Encumbrance accounting errors.
Cancel a purchase order's line (PO) attached to a purchase requisition line, without canceling the backing requisition which is already "Returned" because other lines have been previously returned. An encumbrance journal entry will be created to encumber the requisition line tied to the purchase order line that has been canceled and the encumbered amount and encumbered flag are going to be reset.
If you change this line (quantity and/or unit price) and approve it, any encumbrance entry will be created because it is already encumbered as per the encumbered flag and amount.
Then, add this line to a purchase order, a journal entry is created to reverse the requisition encumbrance using the new amount which may be different than the one that has been used for the POs cancellation.
Expecting the system does not allow to Cancel PO Line tied to Returned Requisition line, and encumbered.
The issue can be reproduced at will with the following steps:
1- Create and approve requisition with 2 lines (total 1 250$)
Line 1 - 500 Each @ 1$
Line 2 - 250 Each @ 3$
2- Autocreate and approve a purchase order using the requisition above.
3- Cancel purchase order line 2 (250 Each @ 3$) without cancelling the backing requisition
4- Return the requisition line
5- Cancel purchase order line 1 (500 Each @ 1$) without cancelling the backing requisition
6- Modify and approve requisition. Change quantity on line 1 (800 Each @ 1$) and change the need by date on line 2.
7- Add the two requisition lines to the purchase order created in step 2.
8-Approve the purchase order
Note: Run the create journal program between each step.
Look at the encumbrance journal entries for that specific requisition and the net balance will be 300$ credit when it should be zero because the requisition lines are attached to an approved purchase order.
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