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How Are Purchase Orders Closed Automatically? Closed Status Rolled Up? PO's Are Not Closing? [ID 1265680.1]
In this Document
Goal
Solution
References
Applies to:
Goal
What are the key components for moving the approved purchase orders to a closed status?
Solution
There are various factors which must be considered that relate to the systematic closing of the Purchase Order Shipments, Lines and Headers.
Factor 1 - Matching
Here is a quick link to the Purchase Order Defaulting Rules - Note 1067175.1.
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Take notice that Receipt Close Tolerance is also on the Item as well as Invoice Close Tolerance.
This is also the primary default for these values as well.
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In the supplier screen – the match approval level can also be set. This is the second defaulting level in the hierarchy.
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In the Line Type – there are two columns – Receipt Required and Receipt Close.
Receipt Required as Yes – serves as a 3 way match – No – would serve as a 2 way match.
You can name the line type anything – in this example 2 way match was given to help clarify.
Also, you see the receipt close tolerance – in this case is set at 100%. This will be explained in the tolerances section.
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In the Purchasing Options – there are settings for Match Approval Level – Receipt Close – and Invoice Close tolerance. This is the last location that is checked
for values – when entering a Purchase Order.
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The Receive and Invoice Close tolerances are entered based on percentages.
The screen prints in Factor 1 also show the locations for entering the tolerance percentages.
Here is a quick link to the Purchase Order Defaulting Rules - Note 1067175.1.
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The receipt close tolerance determines how much quantity must be received before a Purchase Order Shipment will move to the status of Closed For Receiving.
The invoice close tolerance determines how much quantity must be billed prior to moving to a status of Closed for Invoicing.
Once a purchase order/blanket release shipment has met both tolerance conditions for closing – as related to invoicing and receipt – the shipment will
automatically close. The Closure Status for the shipment will show – Closed with a reason of Status Rolled Up.
After all shipments have closed for a particular line – the closure status of the Line will become Closed as well. Finally, when all lines have closed on the
purchase order – the header level of the Purchase Order will become closed.
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This means that in order for this Purchase Order Shipment to move to a status of Closed for Receiving, at least a quantity of 90 or greater - out of the total 100
would need to be received/delivered.
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Now, for 2 way matching – the desire is to only have to approve and then create an invoice. For this to work – it is necessary to have the receipt close tolerance
come in as 100%. By putting in 100% - the system is being told that no receipt would need to be done – as 100% of the quantity is all quantity ordered.
By using 100% receipt close tolerance with 2 way match – the system will move the purchase order shipment immediately to Closed for Receiving. See below:
Here is a purchase order – that is having 2 way match – with 100% receipt close tolerance.
Notice the status tab – below – the shipment is already Closed for Receiving. This now sets up the system so that when the invoicing is conducted – and
reaches within the invoice close tolerance – the purchase order shipment will be closed. In this case – the invoice close tolerance is 0% which means that this
purchase order shipment would require the full amount to be invoiced. If the full amount is not billed – the shipment will remain in the Closed for Receiving status
– and not close (roll up) automatically.
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The receipt close point is a key component when using 3 and 4 way matching. This determines when the closure process should be engaged for the
Receive/Inspection portion of the Purchase Order Receipt.
When a Purchase Order Receipt is conducted - it consists of two transactions - Receive and Deliver.
The Receipt Close Point tells the system when to determine/consider the shipment for Closure.
Receipt Routing is set in the Purchase Order Shipment - Receiving Controls. There are three different types of Receipt Routing:
- Standard Receipt - The Receive and Deliver will be done separately
- Direct Delivery - The Receive and Deliver transaction are done at the time of Receive
- Inspection Required - The Receive - Inspect - and Deliver are done separately
Here is an example:
- Purchase Order - Line 1 - quantity 100 - and shipment is having Receiving Routing - Standard Receipt
- The Receive Close Tolerance is set to 0% - meaning that the quantity will need to be fully Receipted
- The Purchasing Options - Receive Close Point is set to Deliver
The user enters Receiving/Receipts - and conducts the first portion of the Receipt.
- The user does not conduct the Delivery of the receipt
- The shipment will still be open - it will not goto Closed For Receiving - as the receipt close point is Deliver and the Deliver transaction has not yet been
accomplished.
Now, in the above scenario - had the Receipt Routing on the Purchase Order Shipment - Receiving Controls - been Direct Delivery - then at the time the user
conducted the Receive portion of the Receipt - the Deliver would also have been done - which satisfies the Receipt Close Point of Deliver. This would move the
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shipment to Closed For Receiving.
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Reference:
Note 1067175.1 - What Are The Purchase Order Defaulting Rules?
Known Issues:
Note 465068.1 - Generic Datafix For Closing PO Shipments Which Are Eligible To Be Closed State And Are Not In Closed State
Note 403170.1 - Quantity billed in shipments and distributions does not match
Bug 9682212 - PO LINE SHIPMENT STATUS CANCELLED BUT NOT CLOSED
Note 359151.1 - Closed Po Lines Are Reopened After Invoice Matching
Note 252751.1 - POXPOEPO - Closed Purchase Order is Automatically Reopening
Note 736669.1 - When Updating Prices On A Blanket Agreement And Approving, Closed Blanket Releases Are Reopened Unexpectedly
Bug 7664893 Generic script to correct closed code on PO shipments,lines and headers.
References
Attachments
Related
Products
Oracle E-Business Suite > Procurement > Procurement > Oracle Purchasing
Keywords
APPROVE INVOICE; APPROVE PURCHASE ORDER; CLOSED STATUS; DYN_PO_MASS_CANCEL; DYN_PO_MASS_CLOSE; INVOICE; MATCH
APPROVAL LEVEL; PURCHASE ORDER; RECEIPT REQUIRED
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