Requirements
A closed purchase order is one in which all expected activity against all its lines has been fulfilled. Releases, receipts and inspections are no longer entered against it. A closed purchase order remains on the PO Master File until it is marked Finally Closed.
A purchase order is either:
- Automatically closed by the UCM shared services department (CBS2)
- Manually closed at the requestor's discretion
Types of Closures
Close: To temporarily halt activity on the document with the option to reopen it for further activity. You would close the order if you don't expect any further transactions and want it not to appear on any open document queries. Once all schedules for a given PO line are closed, the line is closed. When all lines for a given purchase order header are closed, the PO document is closed. This close status does not reverse the encumbrance.
Final Close: If you do not want additional activity. When you final close a purchase order, purchase order line, or purchase order shipment, Oracle Purchasing automatically liquidates excess encumbrances for the purchase order, purchase order line, or purchase order shipment, respectively. Oracle Purchasing creates credit entries that reverse encumbrances.
Applicability
Purchase orders that meet the following criteria are eligible to be closed by the UC Merced Shared Services Department (CBS2):
- All goods are received and/or services are complete as needed
- The purchase order has a remaining balance (obligation)
- All anticipated invoices have been received and paid
- Any purchase order that was created in error, was duplicated or is no longer needed in Oracle.
Responsible Individuals
Departments are responsible for reviewing their open purchase orders regularly and requesting closure of those that are no longer needed. Depending on the type of closure request, closing a purchase order will free up committed funding (encumbrances) .
Process
Individuals can run the report titled Purchase Order Detail in Oracle to review a department’s list of open purchase orders and their balances.
Requesting closure of a Standard Purchase Order: No request is needed. All fully invoiced purchase orders with a zero-remaining balance will be automatically final closed via a monthly centralized process using Close Purchase Order Schedules in Oracle. Users can request 10 Purchases orders to be closed per ServiceNow ticket.
Requesting closure of an Annual Purchase Order: Submit a request in ServiceNow with the purchase order number, the business justification for the closure, and the type of closure needed (see above). Users can request 10 Purchases orders to be closed per ServiceNow ticket.
Requesting closure of an Agreement or Duly Executed Contract Purchase Order: Submit a request in ServiceNow with the purchase order number, the business justification for the closure, and the type of closure needed.
Request a purchase order be reopened: Submit a request in ServiceNow with the purchase order number and the business justification for reopening.
Controls
All purchase orders will be reviewed based on the guidelines above before closure is executed to ensure all the applicable information has been confirmed.
Closed or final-closed purchase orders will only be reopened for invoicing purposes and must be in the same budget year as the original purchase order. Purchase orders that cross budget years will need to be recreated.
Exception Management
There are no exceptions to this process
