I would like opinion of our user community on how they deal with POs that they don't intend to receive fully. For example, the PO is for $100 and you have received goods worth $30 against it. You don't want to receive the rest of it. Do you change the PO to decrease the amount to $30 (suppliers would get the changed PO automatically)? Or do you just call up supplier and ask him to not ship anything more and leave the PO as it is?
When would you release excess budget reserved against this PO (it can potentially release $70 back to your budget pool)?
We would love to hear any opinion on this question I asked last week. Based on a customer request, we are thinking of release excess budget from a PO if it is marked as "Closed for Receiving". Continuing the same example, if a PO is for $100 and we have received goods worth $30 and have no intention of receiving more, then the user can mark the PO as "Closed for Receiving". This action would release $70 back to the budget reserved by this PO. When this happens, the user will not be able to reopen the PO since we can't receive more than $30. So closing the PO for receiving (and for all actions) will become terminal states.
This of course will be done under a parameter so that all our customers are not impacted. I would love to hear from customers on how they would like the problem to be solved.
Ally does not use the budgeting functionality but we do try to close 'finished' POs. We do not have a formal program or process but would be interested in automating some of the informal processes. As a Financial Services company, most PO are for service and not goods. the receiving functionality is not as useful as for goods.
I have just joined the community and have chanced upon your profile. Although this post is more than a year old, I hope the answer helps.
The customized version of Ariba Buyer 8.2 that we are currently using allows us to maintain partial receipts for partially received goods. This is an in-built feature I believe.
However, as far as I have worked on the product, sending a change order when all goods have not been received will reduce the PO amount to the amount of the goods received, provided the business requirements built in the customizations are taken care of.
If I get a chance, Ill browse through the customized files to check whether this is an in-built feature or not.
Hope it helps!!!!
After 12s2 goes live, you will be able to assign a user to a ne wuser group called "Close Order" and that will enable the user to close or reopen the POs (only the POs that are created by him/her). You could find the recorded demo of this feature in our connect pages. This user group is a small part of the larger feature called "Automatic and Bulk Closure of Purchase Orders".
The On-Premise 9r2 release will introduce Close PO enhancements, allowing users to close a PO and make the necessary PO adjustments based on receiving to date in a much more automated fashion than is present today. This will be compatible with your existing Change Order approval process, or you can update your approval rules to take advantage of this new functionality.
We have created a CustomCloseOrder Task in On-Premise which submits the last composing receipts and push it to SAP, as in our case we need to CloseOrder in SAP more importantly than in Ariba, because our Budget is managed in SAP.
However, This makes sense in On-Demand, to have the Order Closed in Ariba, such that the budget is released is Ariba, but I guess there should be a Configurable Scheduled Task in On-Demand, which does this closing Automatically if there was No Action in the PO for the past few num of days.
Not sure if i am correct, but we can't expect the end user to go ahead and close the order if he doesn't want to receive it, he will always want to keep it alive until he can.
In order to get this into process, end user needs to be forced to close Order after certain days, if he is not taking action on it,
I understand there are long running orders, I guess that needs to be handled using BPO's
Just a thought, not sure if this makes sense for other customers of Ariba.
Since Ally does not use the PO for budgeting commitments, most Open PO remain open indefinitely. If they are closed manually, the remaining balance would not change. We are looking at using the PO for IT budgeting through SAP project systems and are developing manual processes to create a change order to reduce the PO to the available balance and then close.