12 Replies Latest reply: Nov 16, 2013 8:12 PM by nareshk RSS

How do you deal with POs that you don't intend to receive fully?

Deepak Sanghi Ariba Contributor
Currently Being Moderated

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)?

 

Thanks,

Deepak Sanghi

  • Re: How do you deal with POs that you don't intend to receive fully?
    Deepak Sanghi Ariba Contributor
    Currently Being Moderated

    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.

  • Re: How do you deal with POs that you don't intend to receive fully?
    Russ Stebbins Master
    Currently Being Moderated

    Deepak,

     

    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.

     

    • Close a PO for all actions if the PO has less than 10% of value remaining and no invoices posted in last X months (currently 6 but would like to move to 3)
    • Close a PO for all actions if the PO is greater than 12 months old and no invoices posted in the last X months. (the CFO policy is that PO should only be created NTE 12 months)  There are exceptions where the same PO is updated annually, for some reason vendors don't want to update their systems to reflect new PO number.
    • Zero a PO that uses WBS (SAP only) through the change order process.  That updates the SAP budgeting system.  Automation could make this easier.
  • Re: How do you deal with POs that you don't intend to receive fully?
    Sohail Sodhi Journeyman
    Currently Being Moderated

    Hi Deepak

     

    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!!!!

  • Re: How do you deal with POs that you don't intend to receive fully?
    Gerlof Borger Apprentice
    Currently Being Moderated

    In our company we teach the requesters to lower the PR/PO.

    It would be nice if the requester could close it by a simple button.

    I know that this feature is available but the related authorization is to much to give the related ariba role to the end user.

  • Re: How do you deal with POs that you don't intend to receive fully?
    Pranesh Mehta Expert
    Currently Being Moderated

    Hi Deepak,

     

    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.

  • How do you deal with POs that you don't intend to receive fully?
    Russ Stebbins Master
    Currently Being Moderated

    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.

  • Re: How do you deal with POs that you don't intend to receive fully?
    Amit Gupta Expert
    Currently Being Moderated

    Please refer to enhancement request1-BFX4JJ in connect which will provide an ability to mass close Purchase Orders by uploading a file. Probably this will help.

     

    Amit

More Like This

  • Retrieving data ...

Legend

  • Correct Answers - 10 points
  • Helpful Answers - 4 points