Purchase Order Has Negative Encumbrance Balance After Run PO Close Short (Doc ID 2969284.1)

Last updated on AUGUST 21, 2023

Applies to:

Symptoms

Purchase Order Has Negative Encumbrance Balance After Run PO Close Short

The issue can be reproduced at will with the following steps:

Setup
1. At Purchasing Business Unit Definition. Set PO Close Contract Options as ‘warning’.
    Navigation: Menu > Setup Financials/Supply Chain > Business Unit Related > Purchasing > Purchasing Definition
2. At PO Change Option tab. Check ‘All Other Sources’ in Automatically Approve Change Requests
3. At PO Close Short Rules. Make sure that Vouchered Amount and Quantity is set.
    Navigation: Menu > Product Related > Procurement Options > Purchasing > Po Close Short Rules

Steps
1. Create a Single line Amount only PO with Merch amount = $13,881.31 no sales tax, no misc charges.
    Navigation: Menu > Purchasing > Purchase Orders > Add/Update POs
2. Set PO Matching. Match Action = 'Standard', ERS Action = 'No' and Match Rule = 'STANDARD'
3. Budget check and Dispatch PO
4. Create Single line voucher with merch amount = $11,815 + $1,000.39 sales tax = 12,815.39 total voucher amt.
    Navigation: Menu > Account Payables > Vouchers > Add/Update > Regular Entry
5. Run Budget Check and Matching
6. Go to PO Close Short Workbench. Apply Changes to PO. Preview report. PO created above is listed
    Navigation: Menu > Purchasing > Purchase Orders > Manage Change Orders > PO Close Short Workbench
7. Now Submit Close Short Processing
8. Open the PO again. Change Order created.
9. Budget Check PO. Encumbrance balance is negative

Changes

Cause

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