Process to CLOSE-OUT Purchase orders.

[Former Member]

Hi,

Would anyone be able to share the process they follow to close-out Purchase orders which are open ?

Thanks,

RB

[Former Member]

Rajeshree

In our SRM 550 system once the last delivery indicator is checked during confirmation the PO cannot be opened in SRM for editing, and as Mike pointed out, the PO should be closed for editing in the backend system as SRM has the master copy.

We haven't tried the method you proposed in item 4 but this may be the way to go.

Some additional information on Last Delivery indicator is that we have found that if you enter another invoice or credit note into the backend system the PO is re-opened for editing and any previously closed commitments are re-instated.

Hope this helps

Allen

Edited by: Allen Brooks on Mar 16, 2010 8:42 AM

[Former Member]

Rajeshree

To close open PO's in SRM.

1. Goods receipt the total quantity for all lines - this would be the normal way that the PO is closed.

2. If lines are partially confirmed and no further goods are expected, reduce each of the PO line quantities to match the confirmed quantities. This will remove any remaining commitment in the backend system and prevent further confirmations for the lines.

3. If no more goods are to be received delete the line on the PO

4. It is also possible to check the last delivery box on the confirmation document when a delivery is confirmed. This has the effect of closing the PO for all further confirmations and PO changes. It removes the budget commitment in the backend for all open lines on the PO. We advise our users not to use this because inevitably they then want to change the PO price, typically to unblock an invoice, and after checking the last delivery box no further changes to the PO are allowed so invoice unblocking by changing the PO price becomes an issue.

Hope this answers your question.

Regards

Allen

[Former Member]

Allen,

Thanks for your inputs. Below

1. Goods receipt the total quantity for all lines - this would be the normal way that the PO is closed - Agree with you on this.

2. We do not use the last delivery checkbox on the confirmation document because eventually if a PO needs to be opened for some reasons we cannot later on.

3. Incase of partial confirmations and closing open PO's there have been issues in the past with deleting the line. For some reasons, the PO had to be opened again, line item had to be undeleted and this did not seem to work quite well.

4. Another way to close a PO is -Go to the PO line items and flag the 'No further confirmations expected' indicator for every line and re-order the PO.

This will remove the commitments in backend. If a PO needs to be re-opened later (for some odd reasons) it is just a matter of unchecking the indicator (for that line) 'No further confirmations expected'. Would be nice to get your inputs on this.

Thanks

RB

Edited by: Rajeshree Bhatiya on Mar 15, 2010 5:17 AM

Edited by: Rajeshree Bhatiya on Mar 15, 2010 5:20 AM

[Former Member]

Hi Raj,

What SRM scenario was implemented?

[Former Member]

Customer is on SRM_SERVER 550 SP14 with ERP ECC6 (Extended classic scenario).

[Former Member]

Hi Raj,

in that case, POs are readonly in R/3 and hence only editing done in SRM. You can do change versions in POs in order to delete the items for close out. Either that or fully confirm the PO (tag the confirmation as final) and reverse the vendor payables once it gets in (if applicable). What is the purpose of the close out anyway?

[Former Member]

Hi Mike,

Thanks for your inputs. Did you happen to read point 4 in my previous post ? Any inputs on that would be much appreciated.

Also, the reason to close PO's is to be able to retrieve all OPEN PO's report via BW.

Thanks

RB