Cancelling PRs Create Negative Commitment Entries.
(Doc ID 2199120.1)
Last updated on FEBRUARY 26, 2019
Applies to:Oracle Purchasing - Version 12.1.3 to 12.2.4 [Release 12.1 to 12.2]
Information in this document applies to any platform.
A Purchase Order(PO) was created from Purchase Requisition (PR) that resulted in de-commitment entries in GL. The PO was later canceled without canceling the associated PR. This action has made the PR available in the sub ledger but has not re-established any accounting entries for the PR. When the PR is canceled, a de-commitment entry is made in GL. A de-commitment/funding increase is also made on the related Project Task. This is resulting in a negative commitment amount in GL and Projects.
Users should be able to cancel Requisitions without creating negative commitment amount in Projects or an abnormal balance in General Ledger
1. Create a Requisition and Approve
2. From the Project Budget Encumbrance Details, Requisition shows has commitment
3. Autocreate PO from the Requisition
4. Requisition Encumbrance is relieved and a new Purchase Order Encumbrance amount is created
5. Cancel the PO WITHOUT Canceling the backing requisition
6. When the PO is CANCELLED it is removed from the encumbered commitments on the Projects Budget Funds Check Form
7. At this point, the Requisition is still charged against the project task but it the encumbered amount is $0.00, meaning that it is not being counted against the budgeted amount.
8. The Requisition is available in the requestors cue. Here the user can make desired changes or cancel the requisition
9. If the user cancels the REQ, The REQ has been cancelled and no longer appears on the list of encumbered requisitions for the Project Task
10. Canceling A PR with $0.00 with results in a Negative Encumbered Amt on the Project.
Cancelling the PRs will result in a negative commitment amount in GL and Projects. However is the PRs remain approved the appear on the Buyer Demand Workbench and are causing confusion for the users. The client is beginning Year-End Close. These PRs must be cancelled without causing abnormal balances on the projects or in GL.
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