Understanding Purchase Orders

This chapter discusses:

Purchase order defaults.
Purchase order header status values.
Sales and use tax (SUT) processing on the purchase order.
Value-added tax (VAT) processing on the purchase order.
Vendor rebate processing on the purchase order.
Procurement card processing on the purchase order.
PeopleSoft Maintenance Management work order processing on the purchase order.
Purchase order consolidation.
Purchase order cancelation.
Purchase order deletion.
Purchase order hold processing.

Purchase Order Defaults

Purchase orders contain fields whose values and rules for processing are controlled by the information that you specify at different levels in the default hierarchy. To use the system of defaults available in PeopleSoft Purchasing, configure the purchase order business rules and defaults during the installation phase and maintain them regularly. If you use the purchase order online pages, you can override many of the defaults that you have defined at higher levels of the hierarchy.

When you set up the system, there are pages available that enable you to define the defaults for the typical purchase order. When you create a purchase order online, you do not need to access any other page than the Maintain Purchase Order - Purchase Order page. If you find that you must access pages other than the Maintain Purchase Order - Purchase Order page on a regular basis, consider changing the default hierarchy that you have defined.

Define purchase order default values at various levels of the purchase order hierarchy, such as at the business unit, buyer, or vendor level. These values apply to purchase order lines, schedules, and distributions.

When you add new lines to a purchase order, default values appear by default on lines depending on the settings of the default and override options on the Purchase Order Defaults page. If Default is selected, data appears by default on the line from the default hierarchy. If Override is selected, data appears by default on the line from the Purchase Order Defaults page. You can override these defaults using the Purchase Order Defaults page. Changing a value on the Purchase Order Defaults page does not affect any purchase order detail that is already associated with a quantity, unless specified by the user. The new defaults are used on any new schedules that you add.

If you modify a value on the Purchase Order Defaults page or any pages accessed from it and there is an existing line on the purchase order, and you click the OK button the Retrofit field changes to “all” existing PO lines/schedules/distributions page appears. Use this page to specify that you want to apply the changes to existing lines, schedules, and distributions.

Entering Purchase Order Header Information

Entering Purchase Order Defaults

Understanding the PeopleSoft Purchasing Default Hierarchy

Purchase Order Header Status Values

The purchase order header status, like all header values, applies to the entire purchase order. The purchase order status is the high-level indication of where the purchase order is in its life cycle. A typical purchase order does not go through every purchase order status.

This table shows each status value that a purchase order can have with its possible receipt and match statuses. The receipt status refers to the extent to which the purchase order has been received. The match status refers to the extent to which the matching process has been completed.

Purchase Order Status	Receipt Status	Match Status
Initial	Not Received	N/A
Open	Not Received	To be Matched
Pending Approval/Approved	Not Received	To be Matched
Approved	Not Received/Partially Received	Partially Matched
Dispatched	Not Received/Partially Received /Received	Partially Matched / Fully Matched
Canceled	N/A	N/A
Complete	Received	Matched

A purchase order can have a status of Initial when you add it to the system manually or if it is a blanket purchase order that you created from a contract. A manually entered purchase order remains in Initial status until you specify a buyer. Each buyer has an associated default purchase order status of either Open or Pending Approval. When you specify the buyer, the status of the purchase order changes to the buyer's default purchase order status. When you create a purchase order using the PO Calculations (purchase order calculations) Application Engine process (PO_POCALC) and the Create Purchase Orders Application Engine process (PO_POCREATE), the purchase order begins its life cycle with the status that you defined in the buyer setup.

A purchase order cannot enter the approval process until it is in Pending Approval status. There are buttons on the Maintain Purchase Order - Purchase Order page and purchase order Reconciliation WorkBench page that can change the status from Open to Pending Approval. On the purchase order Reconciliation WorkBench page, there is also a button to reset purchase order statuses back to Open.

When the workflow approval process is complete, the purchase order status changes from Pending Approval to Approved. After it is approved, any change in amount or ChartFields causes the system to return the purchase order status to Pending Approval.

Approved purchase orders are available for the PO Dispatch/Print SQR Report process (POPO005). When you dispatch the purchase order, the status changes from Approved to Dispatched, if the purchase order has a valid budget header status and a valid document tolerance status.

After this point, one of three things can happen to the purchase order status:

Creating a change order sets the status back to Approved.
Running the Close Purchase Orders Application Engine process (PORECON) changes the status to Complete.
Canceling the entire purchase order changes the purchase order status to Canceled.

Canceling a purchaser order can be done using the purchase order Reconciliation WorkBench page.

A purchase order does not have to be dispatched to be canceled. It can be canceled at any time during its life cycle until it has been received or invoiced. After the quantity has been received or invoiced, you cannot cancel it.

Understanding Purchase Order Reconciliation

Running the PO Calculations Process

Using the Purchase Order Reconciliation Workbench

SUT Processing on the Purchase Order

PeopleSoft Purchasing supports two different methods for assigning tax rates and amounts on to purchase orders. If you use a third-party tax calculation package, such as Vertex or Taxware, SUT can be assigned to a purchase order schedule by calling the third-party application to perform the tax calculation. In addition, PeopleSoft also provides internal tables to maintain tax rates for instances where a third-party tax provider is not installed. In this case, the internal tax rate tables are used to store tax codes and calculate estimated tax amounts.

SUT rates are usually dependent on the location where the goods are to be used or shipped. For this reason, purchase order SUT amounts are calculated at the schedule level. Two factors that contribute to the calculation are the tax destination and applicability. If you are using PeopleSoft's tax tables, the tax destination and applicability, in addition to other optional factors, such as ultimate use code or category, determine the appropriate tax code, which consists of tax rates. If you use a third-party tax application, the tax destination, applicability, and tax product cross-reference fields (such as ultimate use code) are passed to the application to return tax rates and tax amounts for the schedule.

The tax destination appears by default from the ship to location to the purchase order schedule, where you can override it. The tax destination on the purchase order must be a valid ship to location. Each ship to location definition can include tax exception information, such as whether the location is exempt, direct pay, or active for tax processing.

Use this tax destination to derive the tax applicability. You can establish the tax options for each vendor location on the Tax Options page accessed from the Vendor - Location page. You can set the vendor tax applicability to none, sales, or use. You can also define tax applicability information on the ShipTo Vendor Order Location page. The values that you enter here override the values that you defined for the vendor location. This tax applicability appears by default on the purchase order schedule, where you can modify it.

Once you determine the tax destination and applicability, you can determine the tax rates and amounts for each schedule. If you are using PeopleSoft SUT tables, you will retrieve the tax code and calculate the tax rate. Establish the tax code for each ship to location on the ShipTo Sales/Use Tax Default page. These tax codes search for the entry that most closely matches the schedule line. If you use a third-party application to calculate tax rates and amounts, the tax code field is not required or used as the default on to the schedule. PeopleSoft calls the third-party tax provider to return both the rates and the amounts for the appropriate taxing jurisdictions for each schedule.

For example, let's say that you defined a ship to location of ABC01 with ABC tax codes. Sales tax is applicable for all of the vendors. When you have an order with a ship to location of ABC01, the system automatically calculates the ABC tax for the order. Using this functionality, you have to set up tax codes for vendors only on an exception basis.

You can define tax codes and tax authorities on the Tax Code page and Tax Authority page.

Defining Ship To Locations

Specifying Ship To Location Sales and Use Tax Defaults and Exceptions

VAT Processing on the Purchase Order

To use VAT processing, establish the VAT environment and enable the business units for VAT. You can then create purchase orders that include tax amounts, exceptions, recoverable amounts, and rebate amounts. The PeopleSoft General Ledger business unit associated with the PeopleSoft Purchasing business unit must be established in the VAT entity setup in order for purchase orders to be eligible for VAT processing.

The ship from country and seller's VAT registration information appear by default from the vendor. The ship to country and buyer's VAT registration information by default come from the ship to location on the purchase order, which normally appears by default from the buyer. Key components used in VAT calculations (such as the VAT entity, applicability, exception types, transaction types, and treatments) are derived from the VAT setup.

You can view and modify default VAT information on the PO Header - VAT Information (purchase order header - value-added tax information) page. These defaults apply only to new lines. From this page, you can change either the seller's VAT registration country or the buyer's VAT registration country.

Most of the information that the system uses to retrieve and calculate VAT information is established on the purchase order schedule. This may appear by default from the header in combination with the VAT setup. From the schedule, you can view or modify default VAT information. Any changes made to the schedule affect only new distributions.

From the purchase order schedule, you can change the seller's VAT registration country, the buyer's VAT registration country, or the VAT treatment. To update the VAT default fields affected by any of these changes, click the Adjust Affected VAT Defaults button. Click the Reset All VAT Defaults button if you want the system to reset all of the VAT defaults, including any VAT default fields that you may have changed previously. The system calculates VAT at save time or upon request by clicking the Calculate button on the purchase order header.

The system calculates actual VAT amounts and stores this data on the purchase order distribution record. The system computes the VAT amounts in both the vendor's currency and the base currency on the PeopleSoft General Ledger business unit linked to the purchase order. The system adds VAT amounts for both goods and services to the merchandise amount as long as these amounts are not self assessed. VAT amounts are considered part of the purchase order total amount to be invoiced by the vendor.

See Also

Creating Purchase Order Headers

Creating Purchase Order Schedules

Preparing PeopleSoft Purchasing VAT Environments

Vendor Rebate Processing on the Purchase Order

When creating a purchase order online, the system will automatically assign a vendor rebate agreement to the purchase order line if a vendor rebate agreement is applicable for the vendor and item, item category, or ad hoc item on the purchase order line.

The system uses the vendor on the purchase order or the manufacturer vendor for a group purchasing organization (GPO) manufacturer when assigning a vendor rebate agreement to the purchase order. If the purchase order line is associated with a GPO contract and a vendor has been specified, the system will use this vendor when assigning the vendor rebate agreement. If there is not a vendor associated with the GPO contract then the system will use the vendor on the purchase order. Whether you are using the purchase order vendor or the manufacturer vendor the vendor rebate agreement assignment process is the same.

If there are multiple vendor rebate agreements that could apply to the purchase order line, the system uses a default hierarchy strategy when assigning the vendor rebate agreement to the purchase order line. In all situations, these criteria must be met for the vendor rebate agreements to be available for automatic assignment to the purchase order line:

Vendor rebate agreements must be approved.
Vendor rebate agreements begin date and expire date must fall within the purchase order date.
Vendor rebate agreements purchasing business unit must be the same as that on the purchase order or the vendor rebate agreements are identified as corporate agreements.

Plus, if vendor locations are specified on the purchase order then vendor rebate agreements that have that same vendor location are available for assignment to that purchase order. If no vendor locations are specified on the purchase order then the vendor rebate agreements are available for assignment irrespective of the vendor location.

This table describes the vendor rebate agreement default hierarchy strategy that occurs when assigning a vendor rebate agreement to a purchase order line:

Entry on Purchase Order Line	Vendor Rebate Agreement Default Hierarchy
Item ID is entered.	Vendor rebate agreements specifically for this item. If a vendor rebate agreement exists just for this item, it will automatically be assigned to the purchase order line. If multiple vendor rebate agreements exist for this item, then the system assigns the vendor rebate agreement with the latest begin date as of the purchase order date. Vendor rebate agreements for an item category. If a vendor rebate agreement exists for an item category the system will verify whether the item entered is applicable for this item category. If so, this vendor rebate agreement will automatically be assigned to the purchase order line. If multiple vendor rebate agreements exist for this item category, then the system assigns the vendor rebate agreement with the latest begin date as of the purchase order date. Vendor rebate agreements that are open item rebate agreements. If an open item vendor rebate agreement exists, the system will verify whether the vendor entered is applicable to this vendor agreement. If so, this vendor rebate agreement will automatically be assigned to the purchase order line. If multiple open item vendor rebate agreements exist, then the system assigns the vendor rebate agreement with the latest begin date as of the purchase order date.
Item ID is not entered but description and category are entered.	Vendor rebate agreements for an item category. If a vendor rebate agreement exists for this item category (Include Automatically PO Ad Hoc Items check box is selected on the vendor rebate agreement), it will automatically be assigned to the purchase order line. If multiple vendor rebate agreements exist for this item category, then the system assigns the vendor rebate agreement with the latest begin date as of the purchase order date. Vendor rebate agreements that are open item rebate agreements. If an open item vendor rebate agreement exists (Include Automatically PO Ad Hoc Items check box is selected on the vendor rebate agreement), the system will verify whether the vendor entered is applicable to this vendor agreement. If so, this vendor rebate agreement will automatically be assigned to the purchase order line. If multiple open item vendor rebate agreements exist, then the system assigns the vendor rebate agreement with the latest begin date as of the purchase order date.

The automatic assignment of the vendor rebate agreement occurs not only when a purchase order line is created, but also when you create a purchase order by copying from other documents, namely requisition, contract, or purchase order. When a purchase order is created from another purchase order, the vendor rebate agreement will be assigned based on the purchase order date of the new purchase order and is not copied from the source purchase order lines.

In addition, the system will go through the vendor rebate agreement assignment process every time these fields are changed on the purchase order:

Item ID.
Category ID.
Vendor ID.
Vendor Location.
Manufacturer ID.
Unit of measure.
GPO Contract ID.

Note. Changing the purchase order date will not trigger the reassignment of the vendor rebate agreement because the date can be manually overridden.

Finally, subcontracting purchase orders cannot be tied to a vendor rebate agreement. These are purchase orders that are created from PeopleSoft Manufacturing.

Vendor Rebate Security

The rebate security definition that you define for each user using the Procurement - Purchase Order Authorizations page, determines how the rebate ID field is rendered for the purchase order line on the Maintain Purchase Order - Purchase Order, Maintain Purchase Order - Details for Line, and Express Purchase Order - Details for Line pages.

If the Rebate ID Security Control value is Update then the Rebate ID field and the Look Up Rebate ID button appear on the page. The Rebate ID field is available for update and the Look Up Rebate ID button is active to assist you with vendor rebate agreement assignment.

If the Rebate ID Security Control value is View Only then the Rebate ID field and the Look Up Rebate ID button appear on the page. The Rebate ID field is not available for update, and the Look Up Rebate ID button is not active.

If the Rebate ID Security Control value is Hidden then the Rebate ID field and the Look Up Rebate ID button do not appear on the page.

Once the purchase order line has a receipt transaction or a vendor rebate accrual transaction associated with it the Rebate ID field is unavailable for modification using the Maintain Purchase Order - Purchase Order, Maintain Purchase Order - Details for Line, and Express Purchase Order - Details for Line pages. At this time you would use the Backdate Vendor Rebates page to modify the vendor rebate agreement association with the purchase order line.

Creating Purchase Order Lines

Using Express Purchase Orders

Maintaining Vendor Rebate Agreement Association With Purchase Orders

Procurement Card Processing on the Purchase Order

When creating a purchase order online, the system will automatically assign a procurement card or vendor card to the purchase order if procurement cards or vendor cards are applicable. After the procurement card is assigned by the system the buyer can override the procurement card with another card if they so choose and are authorized.

If there are multiple procurement cards or vendor cards that could apply to the purchase order, the system uses a default hierarchy strategy when assigning the procurement card or vendor card to the purchase order. The default procurement card hierarchy strategy that occurs when assigning a procurement card to a purchase order is:

If the vendor location on the purchase order has a vendor card defined for it then the system will assign the vendor card as the payment method on the purchase order.
If no vendor card exists, then the system will assign the requesters procurement card to the purchase order as payment method if the purchase order was created from a requisition.
Finally, if no vendor card exists for the vendor location and no procurement cards exist for the requester, then the system will assign the buyers procurement card as payment method on the purchase order.

See Also

Managing Procurement Cards

Creating Purchase Orders Online

Using Procurement Cards on Requisitions

Maintaining Vendor Information

PeopleSoft Maintenance Management Work Order Processing on the Purchase Order

In PeopleSoft Purchasing you can only associate a PeopleSoft Maintenance Management work order to a purchase order for non-inventory and description only items. Once you make this association, the purchase order schedule is pegged to a work order. You will use the Pegging Workbench to associate work orders to inventory items on a purchase order.

Plus, if the purchase order line is marked as an amount only line, you cannot associate PeopleSoft Maintenance Management work order information to that purchase order line.

In PeopleSoft Purchasing there are a few different methods of defining a purchase order to support a PeopleSoft Maintenance Management work order. These methods are:

PeopleSoft Maintenance Management creates the purchase order staging tables directly so that the PeopleSoft Purchasing sourcing processes (PO Calculations and Create Purchase Order processes) can generate the purchase order.

If the purchase order was created through the purchasing sourcing processes then the fields on Maintain Purchase Order - Schedules page will contain the work order information passed from PeopleSoft Maintenance Management.
PeopleSoft Maintenance Management creates the requisition staging tables directly so that the PeopleSoft Purchasing Requisition Loader process can generate the requisition. From there the requisition can process through the PeopleSoft Purchasing sourcing processes and a purchase order is generated.

If the purchase order was created through the purchasing sourcing processes and the requisition originated in PeopleSoft Maintenance Management, then the fields on Maintain Purchase Order - Schedules page will contain the work order information passed from PeopleSoft Maintenance Management.
PeopleSoft Purchasing creates a purchase order through the award RFQ (request for quote) process, and the requisition associated with the RFQ has PeopleSoft Maintenance Management work order information, then the work order information associated with the requisition is passed through the RFQ process and will appear here on Maintain Purchase Order - Schedules page.

Note. You cannot manually associate work order information to a RFQ it must come from a requisition associated with the work order information.
You manually create the PeopleSoft Maintenance Management work order association directly when defining a purchase order in PeopleSoft Purchasing.

You manually associate PeopleSoft Maintenance Management work order information to a purchase order schedule by selecting existing work order information on Maintain Purchase Order - Schedules page. You can manually associate a maintenance work order to a purchase order schedule even though the item ID on the purchase order does not exist on the work order parts list.
You manually create a purchase order in PeopleSoft Purchasing by copying a requisition that is associated with a PeopleSoft Maintenance Management work order.

Using the Copy From field on the Maintain Purchase Order - Purchase Order page you can select to copy a requisition when creating a new purchase order. In this case, the work order information is copied from the requisition to the purchase order.

Work Order Modification

When modifying the PeopleSoft Maintenance Management work order information associated with a purchase order there are some things you should keep in mind.

If the purchase order is for a non-inventory item or description only item and is associated with a requisition and you want to change the work order information on the purchase order schedule, you will need to first clear the requisition information on the purchase order distributions by using the Clear Requisition Information button on the Maintain Purchase Order - Distributions for Schedule page.

See Entering Distribution Information.

Plus, if you change the work order information that is already associated with a purchase order schedule, the system will delete the existing purchase order distributions and copy in the work order distributions from the work order itself. Plus, the pegging information will be updated to reflect the new work order information.

See Also

Using Purchase Order Sourcing

Using the Requisition Loader

Creating Purchase Order Headers

Entering Purchase Order Schedule Information

Understanding Maintenance Management

Pegging Supply and Demand

Purchase Order Consolidation

If you have requisition lines with the same business unit, vendor, and buyer, or just the same business unit and vendor, you can consolidate these lines onto single purchase orders. This feature is useful if you do not want to send multiple purchase orders to the same vendor for the same business unit.

If you consolidate the requisition lines onto a single purchase order, the vendor receives only one purchase order from each business unit (or each business unit and buyer combination) each time that you create purchase orders using the PO Calculations and the Create Purchase Orders processes. When you choose the consolidate option, lines for the same item ID (marked as consolidated) for multiple requisitions will be consolidated onto one line on the purchase order. However, the schedules do not get consolidated. You will see a separate schedule (along with its original distributions) for each schedule on the originating requisitions.

On the requisition, if you choose to consolidate the purchase orders on the Sourcing Controls page, when you order by item ID on a requisition, the requisition line is eligible for consolidation by default. You can override this setting.

Based on the setting for the requisition line, the AutoSelect Requisitions process (PO_REQSORC) marks the line for consolidation when it creates the entry on the PeopleSoft Purchasing stage tables.

These other processes that load the PeopleSoft Purchasing stage tables always set the line on the stage table to not consolidated:

PO Stage Load (PO_POSTAGE).
Request for Quotes.
Purchase Order Contracts (PO_POCNTRCT).
Create Par Replenishment Requests (INPGCDMD).

You can override the consolidation method used by online requisition selection by selecting the Define PO (define purchase order) option on the Requisition Selection - Sourcing page. Select this option to create one purchase order for each vendor. Each requisition line that you select appears on its own line, even if it is for the same item. If you select the Define PO option, you must define the purchase order here. The PO Calculations process cannot override this setting even if you select the Consolidation option.

When you select the Define PO option, the information that you view on the Requisition Selection - Sourcing page is exactly what will appear on the purchase order. If you are sourcing to PeopleSoft Inventory or opt to not use the Define PO option, the system copies the requisition information to the stage table, and the PO Calculations process uses it.

The consolidation type that you select on the PO Calculations page determines whether purchase orders are consolidated by business unit, vendor, and buyer, or by business unit and vendor only. The consolidation method applies only to staged rows marked for consolidation.

For example, if you decide to consolidate by business unit and vendor only, then all the rows marked for consolidation that go to the same vendor within the same business unit are grouped onto one purchase order even if they have different buyers. If you decide to consolidate by business unit, vendor, and buyer, then all rows marked for consolidation that go to the same vendor within the same business unit and have the same buyer are grouped onto one purchase order.

If one of these conditions exists on the requisition, then consolidation cannot take place:

You did not select the Calculate Price? option on the requisition-related Line Details page.
The vendor is specified on the requisition, and you did not select the Override Suggested Vendor option on the requisition-related Sourcing Controls page.
The contract is specified.
The requisition item is an ad hoc item (order by description).

Schedules are not consolidated onto the purchase order. Therefore there is a schedule on the purchase order for each requisition schedule.

Staged rows that are not marked for consolidation create a new purchase order for each vendor used on a requisition or other staged entry. So, if two requisitions not marked for consolidation are sourced at the same time, and each requisition has two lines for two different vendors, the PO Calculations process and the Create Purchase Orders process create four purchase orders.

See Also

Entering Purchase Order Line Details

Creating Requisition Lines

Automatically Selecting Requisitions for Sourcing

Creating Purchase Orders Using the Create Purchase Orders Process

Manually Selecting Requisitions for Sourcing

Running the PO Calculations Process

Purchase Order Cancelation

You can cancel a purchase order entirely if all of these conditions apply:

The purchase order is not on hold.
You are authorized to cancel purchase orders on the User Preferences - Procurement: Purchase Order Authorizations page.
You are authorized to cancel purchase orders for the buyer on the User Preferences - Procurement: Purchase Order Authorizations page.
No schedules on the purchase order have been matched.
No receipts have been recorded against the purchase order.
No open vouchers have been recorded against the purchase order.
No open or staged receipts against a blanket purchase order.

Once the system dispatches a purchase order, you can cancel the entire dispatched purchase order or you can cancel all lines without canceling the entire purchase order. On a dispatched purchase order, if you click the Cancel PO (cancel purchase order) button, the status of the purchase order changes to Pending Cancel. Then once you dispatch the purchase order again, the order is canceled.

Purchase Order Cancelation Processes

To cancel a purchase order not sourced from a requisition that does not require budget checking:

Display the purchase order on the Maintain Purchase Order - Purchase Order page.

The purchase order may be in a status of Open, Pending Approved, Approved, or Dispatched.
Click the Cancel PO button on the Maintain Purchase Order - Purchase Order page.

The system displays a message asking you to confirm the cancelation.
Click the Yes button to confirm the cancelation of the purchase order.

If the system was able to cancel the purchase order you’ll receive a message stating successful cancelation on the Maintain Purchase Order - Cancel Purchase Order page.

If the system was not able to cancel the purchase order you’ll receive a message stating that the cancelation was unsuccessful on the Maintain Purchase Order - Cancel Purchase Order page. An unsuccessful cancelation is mostly likely due to a system failure.
Click the Ok button on the Maintain Purchase Order - Cancel Purchase Order page.

The system cancels the purchase order, changes the status on the purchase order to Canceled, and takes you back to the Add/Update POs component - Search page.

To cancel a purchase order not sourced from a requisition that does require budget checking:

Display the purchase order on the Maintain Purchase Order - Purchase Order page.

The purchase order may be in a status of Open, Pending Approved, Approved, or Dispatched.
Click the Cancel PO button on the Maintain Purchase Order - Purchase Order page.

The system displays a message asking you to confirm the cancelation.
Click the Yes button to confirm the cancelation of the purchase order.

If the system was able to cancel the purchase order you’ll receive a message stating that the purchase order was successfully canceled and that the purchase order requires budget checking. The system gives you the option to perform the budget checking process at that time on the Maintain Purchase Order - Cancel Purchase Order page.

If the system was not able to cancel the purchase order you’ll receive a message stating that the cancelation was unsuccessful on the Maintain Purchase Order - Cancel Purchase Order page. An unsuccessful cancelation is mostly likely due to a system failure.
Complete the cancelation process.
- Click the Budget Check button on the Maintain Purchase Order - Cancel Purchase Order page to perform the budget checking process.
  
  The system cancels the purchase order, changes the status on the purchase order to Canceled, performs a budget check, and takes you back to the Add/Update POs component - Search page.
- Click the OK button on the Maintain Purchase Order - Cancel Purchase Order page to not perform the budget checking process.
  
  The system cancels the purchase order, changes the status on the purchase order to Canceled, and takes you back to the Add/Update POs component - Search page.
  
  To perform a budget check on this purchase order you will have use the Budget Check Request run control page at a later date.

To cancel a purchase order sourced from a requisition that does not require budget checking:

Display the purchase order on the Maintain Purchase Order - Purchase Order page.

The purchase order may be in a status of Open, Pending Approved, Approved, or Dispatched.
Click the Cancel PO button on the Maintain Purchase Order - Purchase Order page.

The system displays a message asking you to confirm the cancelation.
Click the Yes button to confirm the cancelation of the purchase order.
- If the purchase order can be canceled the Maintain Purchase Order - Cancel Purchase Order page appears asking if you would like to open the requisition quantities to be sourced again. You have these options:
  
  Yes - Re-source all of the requisitions.
  
  No - Do not re-source the requisitions.
  
  Specify the requisitions you want to re-source. If you select this option, select the requisitions you want to re-source in the Requisitions Available for Re-Sourcing group box.
- If the purchase order cannot be canceled the Maintain Purchase Order - Cancel Purchase Order page appears displaying the error messages why the purchase order cannot be canceled.
Select the requisition re-sourcing option and click the Continue button on the Maintain Purchase Order - Cancel Purchase Order page.

If the system was able to cancel the purchase order you’ll receive a message stating that the purchase order was successfully canceled on the Maintain Purchase Order - Cancel Purchase Order page.

If the system was not able to cancel the purchase order you’ll receive a message stating that the cancelation was unsuccessful on the Maintain Purchase Order - Cancel Purchase Order page. An unsuccessful cancelation is mostly likely due to a system failure.
Click the Ok button on the Maintain Purchase Order - Cancel Purchase Order page.

The system cancels the purchase order, changes the status on the purchase order to Canceled, and takes you back to the Add/Update POs component - Search page.

To cancel a purchase order sourced from a requisition that does require budget checking:

Display the purchase order on the Maintain Purchase Order - Purchase Order page.

The purchase order may be in a status of Open, Pending Approved, Approved, or Dispatched.
Click the Cancel PO button on the Maintain Purchase Order - Purchase Order page.

The system displays a message asking you to confirm the cancelation.
Click the Yes button to confirm the cancelation of the purchase order.
- If the purchase order can be canceled the Maintain Purchase Order - Cancel Purchase Order page appears asking if you would like to open the requisition quantities to be sourced again. You have these options:
  
  Yes - Re-source all of the requisitions.
  
  No - Do not re-source the requisitions.
  
  Specify the requisitions you want to re-source. If you select this option, select the requisitions you want to re-source in the Requisitions Available for Re-Sourcing group box.
- If the purchase order cannot be canceled the Maintain Purchase Order - Cancel Purchase Order page appears displaying the error messages why the purchase order cannot be canceled.
Select the requisition re-sourcing option and click the Continue button on the Maintain Purchase Order - Cancel Purchase Order page.

If the system was able to cancel the purchase order you’ll receive a message stating that the purchase order was successfully canceled and that the purchase order requires budget checking. The system gives you the option to perform the budget checking process at that time on the Maintain Purchase Order - Cancel Purchase Order page.

If the system was not able to cancel the purchase order you’ll receive a message stating that the cancelation was unsuccessful on the Maintain Purchase Order - Cancel Purchase Order page. An unsuccessful cancelation is mostly likely due to a system failure.
Complete the cancelation process.
- Click the Budget Check button on the Maintain Purchase Order - Cancel Purchase Order page to perform the budget checking process.
  
  The system cancels the purchase order, changes the status on the purchase order to Canceled, performs a budget check, and takes you back to the Add/Update POs component - Search page.
- Click the OK button on the Maintain Purchase Order - Cancel Purchase Order page to not perform the budget checking process.
  
  The system cancels the purchase order, changes the status on the purchase order to Canceled, and takes you back to the Add/Update POs component - Search page.
  
  To perform a budget check on this purchase order you will have use the Budget Check Request run control page at a later date.

Canceling a Purchase Order Online

Using the Purchase Order Reconciliation Workbench

Using Commitment Control

Processing Source Transactions Against Control Budgets

Purchase Order Deletion

You can delete a purchase order line, schedule, or distribution by clicking the Delete Row button.

You can delete an entire purchase order by clicking the Purchase Order Delete button on the Purchase Order header panel. You can delete a purchase order entirely if these conditions exist:

The purchase order is not on hold.
The purchase order has never been successfully budget checked.
The purchase order has never been dispatched.
Purchase order deletion is allowed within the business unit on the Purchasing Business Unit Options page.
You are authorized to delete purchase orders on the User Preferences - Procurement: Purchase Order Authorizations page.
You are authorized to delete purchase orders for the buyer on the User Preferences - Procurement: Purchase Order Authorizations page.
The purchase order is not a blanket purchase order.
The purchase order is not a recurring purchase order voucher.
There are no distribution lines on the purchase order that are sourced from a requisition.

The system deletes records from these tables when you delete a purchase order:

PO_HDR

PO_LINE

PO_LINE_SHIP

PO_LINE_DISTRIB

PO_LINE_DIST_NP

PO_COMMENTS

PO_APPROVAL

PO_VAL_ADJ

PO_DFLT_TBL

PO_ADDR_TBL

PO_LN_SHIP_MTCH

PO_FRT_SET

PO_FRT_CHRG

PO_EST_SHIP

PO_LN_SHIP_SUT

PO_LN_SHIP_SUTD

PO_LN_SHIP_EXS

PO_LN_SHIP_EXSD

PO_LN_DIST_EXS

PO_HDR_EXS

Defining Purchase Order User Authorizations

Purchase Order Hold Processing

To place a purchase order on hold from further processing, select the Hold From Further Processing check box on a purchase order using the Maintain Purchase Order - Purchase Order page or the Express Purchase Order - Purchase Order page. Once you place a purchase order on hold, PeopleSoft Purchasing prevents you from performing these actions at all levels of the document:

Approving a purchase order.
Dispatching a purchase order.
Canceling a purchase order.
Closing a purchase order.

You will not be able to delete a purchase order at the header level, but row level deletions are permitted.

In addition, if you have indicated hold from further processing on a purchase order, you will not be able to perform the rollover processes at budget period end for that purchase order.

Note. All buttons on the purchase order become unavailable for input except for the Budget Check, Finalize Document, Undo Finalize Entire Document, Change Order, and Create Line Change buttons.

Budget Checking a Purchase Order On Hold

When you perform budget checking for a purchase order, using the actual buttons on the Maintain Purchase Order - Purchase Order page or the Budget Check Request run control page, that process is also affected by the hold from further processing functionality.

Budget checking is now determined by the selection criteria that you define as part of the Source Transaction definition for the Commitment Control Budget Processor process and whether you have selected the Hold From Further Processing check box for the purchase order. You define the Source Transaction definition selection criteria using the Source Transactions - Selection Criteria page. This table illustrates the different Source Transaction definition selection criteria and whether budget checking occurs for the purchase order:

Source Transaction	Source Transaction - Selection Criteria	Hold From Further Processing	Budget Checking
PO_POENC (purchase order encumbrance)	HOLD_STATUS = N	Selected	Budget checking will not occur.
PO_POENC	HOLD_STATUS not entered as selection criteria.	Selected	Budget checking will occur.
PO_POENC	HOLD_STATUS = Y	Selected	Budget checking will occur for only those purchase orders on hold.
PO_POENCNP (purchase order (non prorate item) encumbrance)	HOLD_STATUS = N	Selected	Budget checking will not occur.
PO_POENCNP	HOLD_STATUS not entered as selection criteria.	Selected	Budget checking will occur.
PO_POENCNP	HOLD_STATUS = Y	Selected	Budget checking will occur for only those purchase orders on hold.

Processing Not Affected When a Purchase Order is Placed On Hold

If a purchase order has the Hold From Further Processing check box selected, you will still be able to:

Create header and line changes.
Run document tolerances.
Run entry events.
Finalize the various levels of the document or the entire document and undo finalize the various levels of the document or the entire document for commitment control purposes.

For example, if the purchase order is on hold and the requisition is not, finalizing the requisition is permitted.
Attach procurement cards to a purchase order on hold and process through to a voucher.
Create receipts and all other processes downstream from the receipt process such as, return to vendor and receipt accrual.
Create vouchers and all other processes downstream from the create voucher process such as, budget checking, matching, and posting.

See Also

Creating Purchase Order Headers

Using Commitment Control

Setting Up Commitment Control Source Transaction Types