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In this Document
Goal
Solution
References
APPLIES TO:
Oracle Purchasing - Version 11.5.10.2 to 12.2 [Release 11.5 to 12.2]
Information in this document applies to any platform.
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
2 Way Matching - Approve/Invoice
3 Way Matching - Approve/Invoice/Receipt
4 Way Matching - Approve/Invoice/Inspect/Receipt
The level of matching (2, 3,or 4) defaults in the following order:
Level 1 - Item if not found then
Level 2 - Line Type - if not found then
Level 3 - Supplier - Receiving Tab Options Area - if not found then
Level 4 - Purchasing Options
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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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Factor 2 - Receive and Invoice Close Tolerances
The Receive and Invoice Close tolerances are entered based on percentages.
The defaulting order of these tolerances is as follows:
Receipt Close Tolerance Defaulting Hierarchy
Level 1 Item in the Item Master if not found then
Level 2 Line Type if not found then
Level 3 Purchasing Options
Invoice Close Tolerance - Defaulting Hierarchy
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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Factor 3 - Receipt Close Point
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.
The receipt close point is set in the Purchasing Options.
- 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 shipment to Closed For Receiving.
Note: If receipt close point is set to 'Accepted' try changing to 'Receive' or 'Deliver' for automatic
close.
Known Issues:
Note 465068.1 - Generic Datafix For Closing PO Shipments Which Are Eligible To Be Closed
State And Are Not In Closed State
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.
NOTE:465068.1 - Generic Datafix For Closing Open PO Shipments Which Are Eligible To Be
Closed
NOTE:736669.1 - When Updating Prices On A Blanket Agreement And Approving, Closed
Blanket Releases Are Reopened Unexpectedly
BUG:5745439 - DATAFIX: 1900 PO LINES HAVING PO SHIPMENT STATUS AS OPEN OR
CLOSED FOR INVOCING
BUG:9682212 - PO LINE SHIPMENT STATUS CANCELLED BUT NOT CLOSED
NOTE:252751.1 - POXPOEPO - Closed Purchase Order is Automatically Reopening