11 Replies Latest reply on May 30, 2013 1:09 PM by Amit Gupta

    Closing Orders and Accruals

    Asif Bhanwadia Apprentice

      Within Ariba Procure-to-Pay only the Purchasing Manager group can manually close purchase orders. The Purchasing Manager group also comes with many other permissions which we don't want a typical end-user to have. The only action the end-user creating the order can do is close it for receiving, but not for invoicing. Since we have a large volume of orders it would be a full-time job for someone with the Purchasing Manager group to close POs on a daily basis. The inability for the end-user to close their own PO causes a massive increase in the number of rows within Ariba's accrual report (Received not Invoiced report). This also causes a significant amount of work for our finance and end-users as it requires them to manually strike out which purchase orders they should not accrue for line-by-line within the report on a monthly basis. Has anyone else run into this situation? Is there a workaround to managing the large volume of POs and the accrual process?

       

      Ideally it would be beneficial if end-users were able to get a special permission or group to manually close their own orders since they would have the most knowledge of it. Another idea would be to have the system automatically close orders if for example the order has been fully received, fully invoiced, and fully reconciled. Any suggestions/recommendations are greatly appreciated.

        • Re: Closing Orders and Accruals
          vadlapatla Newbie

          We ended up closing and tracking the PO's in our financial systems, rather than Ariba. Not using Ariba for Payments makes it easier for us though and dont think thats the case with you.

           

          But if you want to close the PO's in Ariba, I am sure the technical team will be able to help you by manually updating the Invoiced amounts on the PO's to the PO's amount.

           

          Hope this helps!

           

          Hari

          • Re: Closing Orders and Accruals
            Russ Stebbins Master

            I suggest you submit an enhancement request on Ariba Connect.  I would prefer to see a separate group rather than add this to the P2P user group.  Your point stands that this action is not one that should be limited to manager level groups.

             

            We are still trying to come up with a workable process to zero out (reduce to availible funds) the PO before closure.  Closing without going to zero leaves obligated funds in the budgets in our financial system.

             

            We also don't use the finanacial report for accruals.

              • Re: Closing Orders and Accruals
                Bert Riediger Novice

                I agree with the need for a user group that allows the requisitioner to fully close their own purchase orders. In addition we would also request the following (I will be submitting an enhancement request in Connect):

                 

                We also capture and track our Ariba accruals in our ERP system.  We developed a tool in our ERP system that provides numerous selection criteria including selection using amount-based tolerances, ability to select PO's that have not had activity posted in X number of days and then en mass close the PO (in the tool only) and reverse any accruals to the original accounting string. This mirrors a similar transaction within our ERP system for our ERP-based purchases (raw materials).

                 

                Ideally we would like this tool to be in Ariba for a simpler automated en mass closure process that also reverses the accruals. This functionality would require its own user group because of its potential large impact.

              • Re: Closing Orders and Accruals
                Jenny Zuehlke Journeyman

                Hi.  We have a similar problem but our enhancement request was to allow mass closing of Open PO's.

                • Re: Closing Orders and Accruals
                  Deepak Sanghi Master

                  Closing POs automatically is on our roadmap for 12s2. As always, these plans are tentative and they keep changing due to the more critical enhancement requests that come in late. All the suggestions made in this thread are good ones and have already been captured in the enhancement requests submitted by you all and many others.

                   

                  When we start working on this feature, we will reach out to you to confirm the requirements once more and run our design by you for your feedback.

                   

                  Thanks,

                  Deepak Sanghi

                  P2P - Solution Manager, Ariba

                  • Re: Closing Orders and Accruals
                    nareshk Expert

                    We had this very same requirement and when we checked with Ariba, they told it probably would be a candidate for future releases, but definitely not in 9r1. So, we opted to go for a custom solution as summarized below.

                     

                    1. Gave Close Order permission to all people. But wrote a custom validation to let the users close only their own purchase orders.

                    2. Have Created another custom permission that would be assigned to super users to let them close some one else's POs which is helpful in cases when the PO owner changed their department or left the company.

                    3. A scheduled job is built to poll for POs not modified in the last x days, which are completely invoiced and paid and close them.

                    4. The same Scheduled Task will also check for POs not modified for the past y days, and close them even if they are not totally consumed. This would ensure that we don't accrue for something for a long period of time.

                    5. We have built an integration with our ERP also, so that once the POs are closed in Ariba, they get closed in ERP too so that our ERP and Ariba reflect the same statuses.

                     

                    We found that the close functionality is extremely useful to maintain accurate accurals in the organization and gives a better control on the purchases done too.

                      • Re: Closing Orders and Accruals
                        Michele Williams Novice

                        I now work on the procure to pay pro version and many options we had in the installed version are absent from the SAS model. Most specifically around financial reporting and custom permissions. We have a similar problem with who can see what. In order to grant access to view or report on more than your and your direct report documents, we must give people a group that allows them to see everything. We struggle with our accruals each month and are working on a custom report, but the access limitation is also causing us problems.

                        Update:

                        We are pleased that the RNI report that is now in onDemand has improved. We still see room for improvement and have an enhancement request to get the remaining changes that would make this report indespensible. Several SR's were entered about this report and the subsequent report we tried to create to address the deficiencies. We have since written this up in a clear, concise manner and sent it to our Account manager. I have copied

                         

                        it here so that other customers can use it. The RNI report issue is critical for us, we appreciate the support and information other clients have provided on how they deal with it. Ariba seems responsive to working with their clients to correct the issues. We look forward to testing any reporting improvements.

                        RNI Report

                        AP and IT took the time to sit side by side this month during year end close and run the old report (AGCO’s customized the RNI report) and the Ariba canned RNI report. We were able to confirm the Ariba RNI report works and were able to get to a matching amount. However, we still did manual manipulation and did things that just don’t make sense for a financial reporting tool.  I would certainly hope that Ariba does not expect all of their clients to import the PO and Receipts into their ERP system just to make accruals. If we do that, we have very little incentive to use Ariba for invoice processing.

                        Issues with the canned RNI report:

                        1. No Receipt Date (or filter for that) - why AGCO created the custom report in the first place. It allows us to filter out any receipts with dates in the new month. We do not want to accrue for these receipts. (over accrual)     
                        2. No Invoice Date (or filter for that) – report uses the billed amount from the PO, so if an invoice was dated 1/1/12, but the product is received on 12/31/11, the report will show $0 for RNI (it was billed), but we should accrue it. (under accrual)
                        3. AP is still tasked with creating the RNI Amount formula in the DATA tab of the spreadsheet. We can not use the Pivot Table Tab because it does not have the required information for accounting (the accounting fields).      
                        4. Plus, the excel export trims our account numbers (they end in zeros) making the report nearly useless. We use the CSV export so our account numbers export properly. May not be an issue if report is run automatically not manually.
                        5. We still filter out negative and zero dollar amounts. This seems to be very unproductive when the report is called RNI (especially the $0 amounts) I only expect records with something other than $0 in the RNI Amount column. I am getting everything.     
                        6. Generally, report selection criteria are not adequate. We need to be able to filter by cost center, account, etc.

                         

                        Message was edited by: Michele Williams

                      • Re: Closing Orders and Accruals
                        Lou Valdes Journeyman

                        There is also an issue with the RNI netting amounts.  Say $100 PO has been fully invoiced for $100 then a credit is issued for $100 then the $100 will be in the RNI.  RNI needs to be improved.

                        • Re: Closing Orders and Accruals
                          Amit Gupta Master

                          Hi Debbie,

                           

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

                           

                          Amit