7 Replies Latest reply on Jul 26, 2012 5:04 AM by prabhr03

    Invoicing Against Cancelled Orders

    Brian Levow Master

      As I'm sure many of you know, there are times when an end user will cancel an order in the system but decide to keep the goods if the vendor has already shipped them.  When the vendor invoices for those goods, the Ariba P2P system will not allow the invoice to be processed because it references a cancelled order.  Does anyone have any recommendations on how to get this invoice processed?  Ideally, we would like for there to be a way to "uncancel" an order to allow for the invoice to be entered and reconciled.  It should be similar to how "force ordering" something updates the status of a requisition, but doesn't actually affect the transmission of the order.  Any suggestions?

        • Re: Invoicing Against Cancelled Orders
          Deepak Sanghi Master

          Brian,  is reconciling these invoices as a non-PO invoice an option from business perspective?

            • Re: Invoicing Against Cancelled Orders
              Brian Levow Master

              Deepak,

               

              Thanks for the reply.  Unfortunately, non-PO invoicing through Ariba is not an option for us at this time.  We don't have it configured and we have no plans to in the near future.  In essence, that is the way that we are dealing with the issue now anyway.  The invoice has to be processed outside of the system which defeats the purpose.

            • Re: Invoicing Against Cancelled Orders
              Jimmy Hakkim Journeyman

              For future orders, why don't you configure P2P to not allow cancelled (or changed) order if the goods have been shipped.  There's parameter settings for this and can be configured with the help of Support.

                • Re: Invoicing Against Cancelled Orders
                  Brian Levow Master

                  Thanks for your response.  In my experience, there are a lot of suppliers who don't utilize the shipping notifications on the network. Furthermore, we have a lot of quick-enabled supplier accounts in which the suppliers haven't even taken ownership of their accounts yet.  Therefore, the vast majority of the time, we won't be receiving any shipping statuses back to make it worth while to investigate any functionality centered around this.  Any other possibilities?

                    • Re: Invoicing Against Cancelled Orders
                      Deepak Sanghi Master

                      Brian, you have an invoice in P2P that needs to be reconciled. Now it can get reconciled as a non-PO invoice or against a valid PO. There can't be a third option. Reconciling against a cancelled PO is not a good option bacause that will impact compliance. Right? So, if you can't reconcile the invoice as a non-PO, you will have to create a new PO and then manually match the invoice to the new PO.

                       

                      Not sure if I can think of another solution.

                       

                      Thanks,

                      Deepak Sanghi

                      • Re: Invoicing Against Cancelled Orders
                        Russ Stebbins Master

                        Brian,

                         

                        Create a new PO to invoice against or return the goods.  The PO represents approval for spending funds on those goods.  By canceling the PO, you have revoked the approval.  You have to make sure the supplier doesn't double ship; although it sounds like you have trouble communicating to your suppliers.

                         

                        Keeping the goods after canceling is not a good practice, IMHO.  Either you want/need the goods and shouldn't cancel or you don't and shouldn't pay for goods you don't need.  Seems like a waste of money.  What would be the impact of removing the ability to cancel orders?  Does the cancellation process work most of the time and you want to be able to handle the exceptions, or is this the norm, where goods are shipped after cancellation?

                         

                        Russ

                    • Re: Invoicing Against Cancelled Orders
                      prabhr03 Newbie

                      HI Brian,
                      iam not sure about this, does the process of  "cancel hook on PO" resolve the issue??

                      Ram