Reconciling Purchase Orders

This chapter provides an overview of purchase order reconciliation and discusses how to:

Reconcile purchase orders.
Reverse purchase order reconciliation.

Understanding Purchase Order Reconciliation

Use the PO RECON (purchase order reconciliation) Application Engine process (PO_PORECON) to close qualifying purchase orders that you no longer need to modify. When you run the PO RECON process, it reconciles various purchase-order-related settings and statuses to change the status of applicable purchase orders to C (completed).

The benefit of this status change is that completed purchase orders no longer appear in your list of available purchase orders when you access purchase order pages in update and display mode. These completed purchase orders are also removed from the view in many of the other situations in which the available options have been set to exclude completed or canceled purchase orders. Removing these purchase orders improves system performance and decreases the time required to find purchase orders that you need to modify.

If commitment control is enabled, the PO RECON process sets the budget header and line statuses, KK_CLOSE_FLAG and PROCESS_MANUAL_CLOSE accordingly, so that the Comm. Cntrl. Budget Processor (commitment control budget processor) process (FS_BP) can cancel encumbrance budget amounts for outstanding purchase orders.

Although the PO RECON process is optional and you can set it to run at any time, running the process at the end of each month helps to improve the efficiency of your purchase order process. You can schedule this process to run automatically by using the PeopleSoft Process Scheduler or initiate it manually by using the Close PO page.

The PO RECON process occurs at the end of the PeopleSoft Purchasing transaction life cycle. To understand the PO RECON process, it is important to know where the process fits in the PeopleSoft Purchasing transaction life cycle. This diagram illustrates the transaction flow around the PO RECON process:

Transaction flow leading to the PO RECON process

When you run the PO RECON process from the Close PO page, you have three processing options on the Process Scheduler Request page:

Select Close Purchase Order Report (POPO008) to produce the Close Purchase Order report.
Select Close Purchase Orders (PO_PORECON) to run the PO RECON process.
Select Close Purchase Orders (PO_POREP) to run the PO RECON process and produce the Close Purchase Order report.

If necessary, you can run the Purchase Order Reopen process (PO_POREOPEN) to undo the changes made by the PO RECON process.

See Also

Reversing Purchase Order Reconciliation

Using Commitment Control

Enterprise PeopleTools 8.46 PeopleBook: PeopleSoft Process Scheduler

Purchase Order Reconciliation Criteria

To understand how the PO RECON process functions, you must know the criteria that the process uses to close a purchase order. The process checks the settings and statuses of several criteria to determine that a purchase order is ready to be closed and that it does not need to be accessed for modifications in the future.

These tables detail the business-related criteria verified by the PO RECON process and the settings and statuses that must be met to qualify for closure. Each of the criteria discussed must be met for the PO RECON process to close a purchase order:

Business-Related Criteria	Qualifying Setting or Status
Close Days The Close Days field on the Purchasing Definition - Business Unit Definition page specifies the number of days beyond a purchase order's last activity date during which the purchase order cannot be closed. The close days value creates a grace period during which you can change the purchase order before the purchase order closes. If you leave the Close Days field blank, the system uses zero close days.	The PO RECON process verifies that the number of close days defined for the purchase order's purchasing business unit has elapsed. The system adds the value for the Close Days field to the last activity date to determine whether the required number of grace period days has passed. For example, for a PO RECON process run date of August 31, 2000, suppose that the last activity date for the purchase order is August 25, 2000 and the value for the Close Days field is set to five days. In this example, the process closes the purchase order. You can view the value in the Close Days field by writing a Structured Query Language (SQL) statement against PS_BUS_UNIT_TBL_PM.
Cancel Days The Cancel Days field on the Purchasing Definition - Business Unit Definition page specifies the number of days beyond a purchase order last activity date during which the canceled purchase order cannot be closed. The value for the Cancel Days field creates a grace period during which a canceled purchase order cannot be closed. If you leave the field blank, the system uses zero cancel days. Cancel days is a business unit attribute; therefore, the system omits the calculation for the Cancel Days field when the Close PO page specifies a specific purchase order number.	The value in the Cancel Days field works the same way in which the value in the Close Days field does but for canceled purchase orders. The PO RECON process verifies that the number of cancel days defined for the PO Purchasing business unit has elapsed. The system adds the value for the Cancel Days field to the last activity date to determine whether the required number of grace period days has passed. You can view the value in the Cancel Days field by writing an SQL statement against PS_BUS_UNIT_TBL_PM. Note. The PO RECON process does not change the line status from Canceled to Complete. However, it does change the header status to Complete. The purchase order line status remains Canceled, so that you can distinguish canceled lines from closed lines.
Close PO Under Quantity Percent Tolerance The Close PO Under Quantity Percent Tolerance value defines the acceptable percentage of the total purchase order quantity that can be outstanding while still allowing the purchase order to be closed. This setting enables the PO RECON process to close a purchase order even if the received and matched quantities are less than the purchase order quantity. This value is set at these levels: The business unit specific attributes level on the Purchasing Attributes - Purchasing Controls page. The purchasing attributes level when using the Item Master enterprise integration point on the Data Definition Maintenance - PO Attributes - Purchasing Controls 2 page. The item categories level on the Item Categories - Category Definition 2 page. Note. These system levels are ordered from specific to generic. The percent tolerance value set at a more specific level in the hierarchy overrides the setting at the more generic level.	The PO RECON process uses this calculation to verify that the Close PO Under Quantity Percent Tolerance value has been met so that the process can close the purchase order: (Quantity Received) ≥ (Quantity Ordered) - ((Quantity Ordered) x (Percent Tolerance))

Business-Related Criteria

Qualifying Setting or Status

Close Days

The Close Days field on the Purchasing Definition - Business Unit Definition page specifies the number of days beyond a purchase order's last activity date during which the purchase order cannot be closed. The close days value creates a grace period during which you can change the purchase order before the purchase order closes. If you leave the Close Days field blank, the system uses zero close days.

The PO RECON process verifies that the number of close days defined for the purchase order's purchasing business unit has elapsed. The system adds the value for the Close Days field to the last activity date to determine whether the required number of grace period days has passed.

For example, for a PO RECON process run date of August 31, 2000, suppose that the last activity date for the purchase order is August 25, 2000 and the value for the Close Days field is set to five days. In this example, the process closes the purchase order.

You can view the value in the Close Days field by writing a Structured Query Language (SQL) statement against PS_BUS_UNIT_TBL_PM.

Cancel Days

The Cancel Days field on the Purchasing Definition - Business Unit Definition page specifies the number of days beyond a purchase order last activity date during which the canceled purchase order cannot be closed. The value for the Cancel Days field creates a grace period during which a canceled purchase order cannot be closed. If you leave the field blank, the system uses zero cancel days. Cancel days is a business unit attribute; therefore, the system omits the calculation for the Cancel Days field when the Close PO page specifies a specific purchase order number.

The value in the Cancel Days field works the same way in which the value in the Close Days field does but for canceled purchase orders. The PO RECON process verifies that the number of cancel days defined for the PO Purchasing business unit has elapsed. The system adds the value for the Cancel Days field to the last activity date to determine whether the required number of grace period days has passed.

You can view the value in the Cancel Days field by writing an SQL statement against PS_BUS_UNIT_TBL_PM.

Note. The PO RECON process does not change the line status from Canceled to Complete. However, it does change the header status to Complete. The purchase order line status remains Canceled, so that you can distinguish canceled lines from closed lines.

Close PO Under Quantity Percent Tolerance

The Close PO Under Quantity Percent Tolerance value defines the acceptable percentage of the total purchase order quantity that can be outstanding while still allowing the purchase order to be closed. This setting enables the PO RECON process to close a purchase order even if the received and matched quantities are less than the purchase order quantity.

This value is set at these levels:

The business unit specific attributes level on the Purchasing Attributes - Purchasing Controls page.
The purchasing attributes level when using the Item Master enterprise integration point on the Data Definition Maintenance - PO Attributes - Purchasing Controls 2 page.
The item categories level on the Item Categories - Category Definition 2 page.

Note. These system levels are ordered from specific to generic. The percent tolerance value set at a more specific level in the hierarchy overrides the setting at the more generic level.

The PO RECON process uses this calculation to verify that the Close PO Under Quantity Percent Tolerance value has been met so that the process can close the purchase order:

(Quantity Received) ≥ (Quantity Ordered) - ((Quantity Ordered) x (Percent Tolerance))

This table details the record-level criteria that must be met for a purchase order to qualify for closure:

Record-Level Criteria	Qualifying Setting or Status
PO Status	The PO RECON process verifies that the purchase order has a status of D (dispatched) or X (canceled). Statuses of O (open) and A (approved) enable the process to close a purchase order when other applicable criteria are met. Statuses of I (initial), P (pending approval), and C (completed) do not enable the process to close the purchase order. You can view the purchase order status by writing an SQL statement against PS_PO_HDR.
Activity Date The system updates this date on the purchase order when you create a change order and save your work, and also when you cancel a purchase order through the PO Workbench page.	The PO RECON process uses these calculations to determine whether the purchase order's last activity date enables the process to close the purchase order: (Activity Date) ≤ (Current Date) - (Close Days). (Activity Date) ≤ (Current Date) - (Cancel Days). You can view the activity date value by writing an SQL statement against the PS_PO_HDR record and looking at the ACTIVITY_DATE field.
Match Status	The PO RECON process verifies that, if matching is required for the purchase order, the match status of the purchase order is M (matched), O (overwritten match), or N (no match required). In cases where the MATCH_STATUS_PO and MATCH_STATUS_LN_PO never reaches a status of M (matched), the PO RECON process checks the purchase order schedule (PO_LN_SHIP_MTCH) for quantity matched. A matching status of T (to match) or P (partially matched) does not qualify the purchase order for closure. When matching is required on a purchase order, there can be several vouchers against a purchase order. One of the vouchers might be matched, but the status (MATCH_STATUS_PO) on the purchase order remains P (partially match) until the final voucher is matched. The purchase order status then changes to M (matched). The PO RECON process considers a purchase order fully matched and available for closure when these criteria are met: The quantity ordered for each line on the purchase order is less than or equal to the total quantity received and matched. The quantity ordered is within the specified Close PO Under Quantity Percent Tolerance value. You can view the match status value by writing an SQL statement against the PS_PO_HDR table and viewing the value in the MATCH_STATUS_PO field.
Distribution Line Status	The PO RECON process verifies that the distribution line statuses for the purchase order are O (open), P (processed), or X (canceled).
Amount Only	The PO RECON process checks to see whether the Amount Only check box (AMT_ONLY_FLG) is selected for the purchase order line. If the purchase order line is to be received by amount only, the PO RECON process sums up the merchandise amounts in vendor currency recorded in receipt transactions and compares the total to the merchandise amount on the purchase order to determine whether the purchase order has been fully received.
Receiving Required setting	The PO RECON process verifies whether the Receiving Required field is Receiving is Requiredfor the purchase order line on the Maintain Purchase Order - Details for Line page. The process uses this setting in conjunction with the due date value at the record level to determine whether it can close the purchase order. You can view the receiving required value by writing an SQL statement against the PS_PO_LINE.RECV_REQ field.
Due Date	The PO RECON process uses this calculation to verify that the due date on the purchase order schedule line (PO_LINE_SHIP.DUE_DT) is less than or equal to the calculated close date: (Due Date)≤ (Current Date) - (Close Days) The PO RECON process verifies that the due date value for purchase orders when the Receiving Required field is Receiving is Optional or Do Not Receive.. This includes PeopleSoft Order Management direct shipments.
Voucher Status	The PO RECON process verifies that associated vouchers have been posted, deleted, or closed.
Entry Event Status	If you enable commitment control, the PO RECON process verifies that you have checked the row for entry events.

Additionally, you can view purchase order schedule information (PS_PO_LINE_SHIP), purchase order distribution information (PS_PO_LINE_DISTRIB), and purchase order receiving information (PS_RECV_LN_DISTRIB) by writing an SQL statement against the mentioned tables.

Understanding Purchase Order Reconciliation

Entering Purchase Order Line Details

Establishing PeopleSoft Purchasing Business Units

Defining Purchasing Item Attributes

Editing Data Errors in the Item Loader Staging Tables

Describing Purchase Order Reconciliation Changes to Purchase Order Statuses

The PO RECON process can close purchase order distribution lines, schedules, lines, and header in intervals. Distribution lines close first, followed by the schedules, lines, and finally the header. Therefore, it is possible to have a distribution line close before the rest of the purchase order.

For example, suppose that a purchase order contains 20 lines, each with two schedules. When the necessary distributions close, the schedule qualifies for closure. Once the two schedules close for a line, the line closes. When the 20 lines close, the purchase order closes.

If a purchase order meets the criteria described in the previous tables, the PO RECON process updates purchase order statuses as shown in these tables:

PO Distribution Line (PO_LN_DISTRIB)	Updated Status
BUDGET_LINE_STATUS (if commitment control is used)	N (not budget checked)
KK_CLOSE_FLAG (if commitment control is used)	Y (yes)
PROCESS_MAN_CLOSE	Y (yes)
DISTRIB_LN_STATUS	C (completed)
PC_DISTRIB_STATUS	N (no)

PO Distribution Line (PO_LINE_DIST_NP)	Updated Status
BUDGET_LINE_STATUS (if commitment control is used)	N (not budget checked)
KK_CLOSE_FLAG (if commitment control is used)	Y (yes)
PROCESS_MAN_CLOSE	Y (yes)
DISTRIB_LN_STATUS	C (completed)

PO Schedule	Updated Status
CANCEL_STATUS	C (completed)

PO Line	Updated Status
CANCEL_STATUS	C (completed)

PO Header	Updated Status
PO_STATUS	C (completed)
ACTIVITY_DATE	Run Date
BUDGET_HDR_STATUS (if commitment control is used)	N (not budget checked)
BUDGET_HDR_STS_NP (if commitment control is used)	N (not budget checked)
RECV_STATUS	R (fully received)

Purchase Order Reconciliation and the Fully Received Status

When you receive goods against a dispatched purchase order, the received status changes to P (partially received). The PO RECON process changes the purchase order line item O (open) status to R (fully received), if any of these sets of criteria are met for a purchase order:

Matching is not required.
The line item status is Open.
(Quantity Matched) ≥ (Quantity Ordered).

Matching is required.
The line item status is Open.
(Quantity Matched on PO_LN_SHIP_MTCH) ≥ (Quantity Ordered) x (Under Quantity Percent Tolerance).

Receiving is not required or optional.
The line item status is Open.
(Scheduled Due Date) ≤ (Current Date) - (Close Days).

Receiving is required and:
The line item status is Open.
(Last Activity Date) ≤ (Current Date) - (Close Days).
(Scheduled Due Date) ≤ (Current Date).

Purchase Order Reconciliation and the Complete Status

The PO RECON process closes a dispatched purchase order and sets its status to Complete if any of these sets of criteria are met for a purchase order:

The purchase order is dispatched.
The purchase order matched status is either Matched, Not Required, or Override Match.
Receiving is required.
All line items are fully received.
(Last Activity Date) ≤ (Current Date) - (Close Days).

The purchase order is dispatched.
The purchase order matched status is either Matched, Not Required, or Override Match.
Receiving is not required or optional.
(Shipment Due Date) ≤ (Current Date).
(Last Activity Date) ≤ (Current Date) - (Close Days).

Reconciling Purchase Orders

This section discusses how to run the PO RECON process.

You can use the Purchase Order Reconciliation Workbench to preview the results of the PO RECON process on selected transactions. Once you have confirmed that the process produces the results that you want, you can run the PO RECON process from the Purchase Order Reconciliation Workbench.

Page Used to Reconcile Purchase Orders

Page Name	Object Name	Navigation	Usage
Close PO	RUN_PORECON	Purchasing, Purchase Orders, Reconcile POs, Close Purchase Orders, Close PO	Run the PO RECON process and produce the Purchase Order Reconciliation report (POPO008).

Running the PO RECON Application Engine Process (PO_PORECON)

Access the Close PO page.

Process Request Parameters

PO Post Run Option

Determines which purchase orders are selected for the PO RECON process. Values are:

1 Bus Unit (one business unit): Reconciles all purchase orders within a single business unit. If you select this value, you may enter business unit and ChartField criteria.

1 Document: Reconciles a single purchase order within a single business unit. If you select this value, you may enter business unit, purchase order, and ChartField criteria.

All BUs (all business units): Reconciles all purchase orders within all business units. If you select this value, all other fields on the page are unavailable for entry.

ChartField Criteria

Use the ChartField Criteria group box to select purchase orders for processing based on ChartField values. This option is useful if you are using commitment control and want to process purchase orders based on ChartField values.

Accounting Date for Action

Displays the accounting date for action, which is used to determine the open period or allowable open date range for budget checking a purchase order when you are using commitment control.

In addition, whether you are using commitment control or not the system updates the accounting date with this date for the purchase orders closed by the reconciliation process.

See Also

POPO008 - Purchase Order Reconciliation

Reversing Purchase Order Reconciliation

This section provides an overview of the purchase order reopen process and lists the page used to reverse purchase order reconciliation.

Understanding the Purchase Order Reopen Process

PeopleSoft Purchasing provides the Purchase Order Reopen Application Engine process (PO_POREOPEN) to undo changes made by the PO RECON process. The process reverses the effects of the PO RECON process on the most recently processed group of purchase orders.

Run the Purchase Order Reopen process to return each purchase order status to its status prior to the last run of the PO RECON process. This does not necessarily mean that running the Purchase Order Reopen process reopens each purchase order. If a purchase order status was canceled prior to being closed by the PO RECON process, running the Purchase Order Reopen process on the purchase order returns the purchase order's status to Canceled. If the purchase order status was open prior to the PO RECON process, running the Purchase Order Reopen process returns the purchase order's status to Open.

Page Used to Reverse Purchase Order Reconciliation

Page Name	Object Name	Navigation	Usage
Reopen Closed POs	RUN_PO_REOPEN	Purchasing, Purchase Orders, Reconcile POs, Reopen POs, Reopen Closed POs	Initiate the Purchase Order Reopen process.