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Revised: August 28, 2008 Purchasing Reconciliation Process
Frequently Asked Questions (Updated 5/8/06) Definitions Tentative Purchasing Reconciliation Process Run Schedule: Note: Complete days refers to the number of days that must have elapsed since the last activity for the PO to be elgible for completion. For cancellation, 300 days must have elapsed since the PO creation date with no activity.
Completed Purchase Order: No longer available for vouchering or receipts. Completed purchase orders are not returned in search results in the worksheet copy option of a Regular Entry voucher or in the search for purchase orders to receive against in Receive Items. The purchase order information can still be reviewed at Purchasing > Purchase Orders > Review PO Information. PO activity: A process that updates the purchase order within the Purchasing module of PeopleSoft including PO creation and change request processing. Fully matched : A purchase order is fully matched when it has been vouchered against to the full extent possible and there is no additional quantity or amount available on the PO to voucher against. Purchase Order statuses and what they mean: Approved: Purchase order has been created from a requisition but it has not yet been sent to the vendor. Purchase orders that fail budget checking will remain in Approved status until budget check runs successfully. Dispatched: Purchase order information has been sent to the vendor based on the method indicated in the vendor file and vendor preferences. Cancelled: Purchase order has never been matched to a receipt or a voucher. Purchase orders are only placed in this status by change request or through the Purchasing reconciliation process if the PO has been created but no activity has occurred in the last 300 days. Completed: Placed in this status by Purchasing reconciliation processes or the Purchasing core office. Completed purchase orders are no longer available for vouchering or receiving against and cannot be returned to available status. A purchase order must meet all 4 criteria of the following criteria to be eligible for completion:
Q: I just read the DDD Memo about year end about finalizing the last voucher to get rid of POs I don't need. Do I need to finalize a voucher if my PO has already been completed by PO Reconciliation? How can I tell what the status of my PO is? A: No, finalizing vouchers against completed POs will have no effect because all remaining funds were released when the PO was closed. To see if your PO is complete, go to Purchasing > Purchase Orders > Review PO Information > Purchase Orders and put in your Business Unit. For more help tracking your purchase orders and the status of them, go here. Q: My purchase order is on the list for PO reconciliation and I don't need it anymore. What do I need to do? A: Nothing! POs on the list will be completed by the reconciliation process and any remaining funds will be released. No action is required if you want the PO to close. If you want to keep it open, read this. Q: I finalized a multi-line PO on a voucher and it did not release the funds on all the lines. Then the PRP process completed all but the one line that still is encumbered. Why? A: Finalizing a purchase order on a voucher only finalizes the lines that were copied into that specific voucher. If a PO line has never been vouchered against then a change order is required to cancel that individual line. The PRP process saw that the line that was not finalized didn’t meet all the criteria for completion and so left that one line available for future vouchering. Q: I don’t want a certain PO to be completed even though it meets criteria. How can I make sure it doesn’t get picked up by the process? A: Contact purchasing@ufl.edu and provide the business unit, PO number, and a valid reason. The core office is able to prevent completion. This action will be reserved for those with valid business reasons why a certain PO must be left in dispatched status despite meeting all completion or cancellation criteria. Q: How can I look at the information on cancelled or completed purchase orders? A: The purchase order information can still be reviewed at Purchasing > Purchase Orders > Review PO Information. Q: I can't find one of my Purchase Orders in the PO Inquiry under Accounts Payable. I think it has been completed. Where can I see the status of my PO? A: Navigate to Purchasing > Purchasing Orders > Review PO Information > Purchase Orders. Here you will find all POs regardless of their status. The status is shown at the header as Compl if it has been completed by the reconciliation process. Q: I've been using a blanket/amount only PO to a vendor for the last year and the reconciliation process completed it even though funds were still left on the PO. Why? A: Amount only purchase orders that are vouchered with a quantity in the distribution line are considered matched. Most often the PO has a quantity of 1 lot and the associated vouchers also have a quantity of 1 on the distribution line. In order to prevent this, proper distribution by amount should be indicated on the PO and the vouchers (there should be no quantity on any voucher). Q: Can my completed purchase order be reopened? What happened to the funds that were still encumbered on my completed/cancelled PO? A: These POs cannot be reopened. The reconciliation process releases any remaining funds on POs marked as complete or cancelled by the process. Examples of completion criteria: Note: These examples show how a PO comes to meet a single criterion. In order to be elgible for completion, a PO must meet all applicable criteria. 1. The PO has been fully matched if vouchered by quantity; This means that the chartfield on the PO was distributed by quantity and then a voucher was created for that quantity or the PO was distributed by amount and the voucher processor did not remove the quantity from the invoice line. Example: A PO for 2 widgets that were not assets was created on 8/5/05 and the chartfield was distributed by quantity. On 9/15/05 a voucher for one widget was created for a quantity of one. On 10/2/05 a second voucher was created to request payment for the second widget. This PO is now fully matched and fully vouchered (quantity of 2 on PO is matched to the total quantity of 2 on all related vouchers); the status will be changed to complete the first time the purchasing reconciliation process is run after 12/3/05 (8/5/05 + 120 days). 2. The PO has been fully received if receiving is required; Assets are required to be received in the myUFL system. Fully received means that all items requiring receipt on the PO have been received in the system against the purchase order. This is determined on the PO by the category chosen on the requisition. Example: Suppose the 2 widgets in the example above were assets. Even if both vouchers were entered and paid, the PO would not be eligible for completion until the receipts are processed. 3. The PO has been fully vouchered or finalized on a voucher; Purchase orders that are distributed by amount are considered fully vouchered when the amount of a voucher or combination of vouchers equals the amount that has been encumbered (original amount +/- the amount of any change orders against the PO). Example: A PO is set up to be distributed by amount for a total of $1,000. Later a change order increases this amount to $1,500. Three vouchers for $500 each are input over the course of 3 months but the PO is not finalized on any of the vouchers. This PO is eligible for PRP because the 3 voucher totals against the PO equal $1,500. Another example is a PO set up by amount for $800. A voucher for $600 is entered against the PO but the PO amount was more than needed. The voucher is finalized and releases the remainder of the funds. (For information about how to finalize a voucher, see the Encumbered Vouchers instruction guide.)This PO is eligible for PRP. 4. There has been no PO activity in 120 Days, where PO activity is defined as creation of the purchase order or processing of a change request. Example: In any of the examples above, none of the purchase orders were created or had a change request processed in the last 120 Days. Initially PRP will run for purchase orders not having activity in 230 days and this will be decreased gradually over April until it is running monthly with an activity range of 120 days. Purchasing Reconciliation Process (PRP) The Purchasing core office will begin running a reconciliation process for purchase orders and requisitions in preparation for fiscal year end. This process changes the status of a purchase order to complete based on the following criteria. A completed purchase order is no longer available for vouchering or receiving against and cannot be returned to an available status. All criteria must be met in order for a Purchase Order to be eligible for completion.
In addition, the Purchasing Reconciliation Process will cancel purchase orders that have never been vouchered against and are 300 days old. Requisitions associated with purchase orders completed or cancelled by the Purchasing Reconciliation process will also be completed or cancelled. Do you have a question?
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