R12:Purchase Order Encumbrance Is Closed Twice At Prepayment Invoice And When Applying this Prepayment Invoice To Standard Invoice
(Doc ID 1957490.1)
Last updated on SEPTEMBER 14, 2017
Applies to:Oracle Payables - Version 12.1.1 and later
Oracle Purchasing - Version 12.1.1 and later
Information in this document applies to any platform.
The prepayments attached to the Purchase Order are accounting incorrectly. See details on the file attached.
A-According to purchasing setup, if expense item accrued at period end so the Purchase Order encumbrance will be closed at invoicing time, so in our case if expensed Purchase Order created , approve , reserve fund , the entry will be
B-Then if prepayment invoice created and matched to this Purchase Order, the Purchase Order encumbrance will be closed normally, prepayment invoice budgetary control events will be created and reversed at once as follows in addition the normal “Actual” prepayment entry
1-Closing Purchase Order encumbrance and prepayment invoice budgerty control event
2-Reversing prepayment invoice budgerty control event
3-Actual prepayment entry
C-Now if standard invoice created and applied to this prepayment invoice , the Purchase Order encumbrance will be closed one more time and this is not logical because the PO encumbrance is closed at prepayment invoice so why it is closed one more time in standard invoice, as follows
in line number 1 and line number 4, the Purchase Order encumbrance is closed in the standard invoice also
The issue has the following business impact:
After transferring accounting of prepayment invoice and standard invoice to GL , posting there will be an issue in check fund availability
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