My Oracle Support - Knowledge Browser - 1265680

6/3/12 My Oracle Support | Knowledge Browser | 1265680.
How Are Purchase Orders Closed Automatically? Closed Status Rolled Up? PO's Are Not Closing? [ID 1265680.1]
Modified 30-NOV-2011 Type HOWTO Status PUBLISHED
In this Document
Goal
Solution
References
Applies to:
Oracle Purchasing - Version: 11.5.10.2 to 12.1.3 - Release: 11.5 to 12.1

Information in this document applies to any platform.
Goal
What are the key components for moving the approved purchase orders to a closed status?
Solution
There are various factors which must be considered that relate to the systematic closing of the Purchase Order Shipments, Lines and Headers.
Factor 1 - Matching
2 Way Matching - Approve/Invoice

3 Way Matching - Approve/Invoice/Receipt
4 Way Matching - Approve/Invoice/Inspect/Receipt
The level of matching (2, 3,or 4) defaults in the following order:

Level 1 - Item if not found then
Level 2 - Supplier - Receiving Tab Options Area - if not found then
Level 3 - Line Type - if not found then
Level 4 - Purchasing Options
Here is a quick link to the Purchase Order Defaulting Rules - Note 1067175.1.
________
If Receipt Required is Yes and Inspection Required is No

– this is 3 way matching – meaning Approve/Receive/Invoice
If Receipt Required is No and Inspection Required is No

– this is 2 way matching – meaning Approve/Invoice
If Receipt Required is Yes and Inspection Required is Yes

– this is 4 way matching – meaning Approve / Inspect / Receive / Invoice
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Take notice that Receipt Close Tolerance is also on the Item as well as Invoice Close Tolerance.
This is also the primary default for these values as well.
________
In the supplier screen – the match approval level can also be set. This is the second defaulting level in the hierarchy.
________
In the Line Type – there are two columns – Receipt Required and Receipt Close.
Receipt Required as Yes – serves as a 3 way match – No – would serve as a 2 way match.
You can name the line type anything – in this example 2 way match was given to help clarify.
Also, you see the receipt close tolerance – in this case is set at 100%. This will be explained in the tolerances section.
________
In the Purchasing Options – there are settings for Match Approval Level – Receipt Close – and Invoice Close tolerance. This is the last location that is checked
for values – when entering a Purchase Order.
________
Factor 2 - Receive and Invoice Close Tolerances
The Receive and Invoice Close tolerances are entered based on percentages.
The defaulting order of these tolerances is as follows:

Receipt Close Tolerance – Defaulting Hierarchy
Level 1 – Item in the Item Master – if not found then

Level 2 – Line Type – if not found then
Level 3 – Purchasing Options
Invoice Close Tolerance - Defaulting Hierarchy
Level 1 - Item in the Item Master - if not found then

Level 2 - Purchasing Options
The screen prints in Factor 1 also show the locations for entering the tolerance percentages.
Here is a quick link to the Purchase Order Defaulting Rules - Note 1067175.1.
________
The receipt close tolerance determines how much quantity must be received before a Purchase Order Shipment will move to the status of Closed For Receiving.
The invoice close tolerance determines how much quantity must be billed prior to moving to a status of Closed for Invoicing.
Once a purchase order/blanket release shipment has met both tolerance conditions for closing – as related to invoicing and receipt – the shipment will
automatically close. The Closure Status for the shipment will show – Closed with a reason of Status Rolled Up.
After all shipments have closed for a particular line – the closure status of the Line will become Closed as well. Finally, when all lines have closed on the
purchase order – the header level of the Purchase Order will become closed.
________
Here is an example of how the receipt close tolerance works.
Suppose that a purchase order line has a quantity of 100.

The receipt close tolerance is 10%. This is seen on the Purchase Order Shipment – More TAB
10% of 100 is 10. Deduct this from the shipment total as 100 – 10 = 90.
This means that in order for this Purchase Order Shipment to move to a status of Closed for Receiving, at least a quantity of 90 or greater - out of the total 100
would need to be received/delivered.
Now, for 2 way matching – the desire is to only have to approve and then create an invoice. For this to work – it is necessary to have the receipt close tolerance
come in as 100%. By putting in 100% - the system is being told that no receipt would need to be done – as 100% of the quantity is all quantity ordered.
By using 100% receipt close tolerance with 2 way match – the system will move the purchase order shipment immediately to Closed for Receiving. See below:
Here is a purchase order – that is having 2 way match – with 100% receipt close tolerance.
Notice the status tab – below – the shipment is already Closed for Receiving. This now sets up the system so that when the invoicing is conducted – and
reaches within the invoice close tolerance – the purchase order shipment will be closed. In this case – the invoice close tolerance is 0% which means that this
purchase order shipment would require the full amount to be invoiced. If the full amount is not billed – the shipment will remain in the Closed for Receiving status
– and not close (roll up) automatically.
________
Factor 3 - Receipt Close Point
The receipt close point is a key component when using 3 and 4 way matching. This determines when the closure process should be engaged for the
Receive/Inspection portion of the Purchase Order Receipt.
The receipt close point is set in the Purchasing Options.
When a Purchase Order Receipt is conducted - it consists of two transactions - Receive and Deliver.
The Receipt Close Point tells the system when to determine/consider the shipment for Closure.
Receive is completed - Receiving/Receipts

Deliver is completed - Receiving/Receiving Transactions
Receipt Routing is set in the Purchase Order Shipment - Receiving Controls. There are three different types of Receipt Routing:
- Standard Receipt - The Receive and Deliver will be done separately
- Direct Delivery - The Receive and Deliver transaction are done at the time of Receive
- Inspection Required - The Receive - Inspect - and Deliver are done separately
Here is an example:
- Purchase Order - Line 1 - quantity 100 - and shipment is having Receiving Routing - Standard Receipt
- The Receive Close Tolerance is set to 0% - meaning that the quantity will need to be fully Receipted
- The Purchasing Options - Receive Close Point is set to Deliver
The user enters Receiving/Receipts - and conducts the first portion of the Receipt.
- The user does not conduct the Delivery of the receipt
- The shipment will still be open - it will not goto Closed For Receiving - as the receipt close point is Deliver and the Deliver transaction has not yet been
accomplished.
Now, in the above scenario - had the Receipt Routing on the Purchase Order Shipment - Receiving Controls - been Direct Delivery - then at the time the user
conducted the Receive portion of the Receipt - the Deliver would also have been done - which satisfies the Receipt Close Point of Deliver. This would move the
shipment to Closed For Receiving.
________
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Reference:
Note 1067175.1 - What Are The Purchase Order Defaulting Rules?
Known Issues:
Note 465068.1 - Generic Datafix For Closing PO Shipments Which Are Eligible To Be Closed State And Are Not In Closed State
Note 403170.1 - Quantity billed in shipments and distributions does not match
Bug 9682212 - PO LINE SHIPMENT STATUS CANCELLED BUT NOT CLOSED
Note 359151.1 - Closed Po Lines Are Reopened After Invoice Matching
Note 252751.1 - POXPOEPO - Closed Purchase Order is Automatically Reopening
Note 736669.1 - When Updating Prices On A Blanket Agreement And Approving, Closed Blanket Releases Are Reopened Unexpectedly
Bug 7664893 Generic script to correct closed code on PO shipments,lines and headers.
References
BUG:9682212 - PO LINE SHIPMENT STATUS CANCELLED BUT NOT CLOSED

NOTE:1067175.1 - What Are The Purchase Order Defaulting Rules?
NOTE:252751.1 - POXPOEPO - Closed Purchase Order is Automatically Reopening
NOTE:359151.1 - Why are Closed Purchase Order Lines Reopened After Invoice Matching?
NOTE:403170.1 - Quantity billed in shipments and distributions does not match
NOTE:465068.1 - Generic Datafix For Closing PO Shipments Which Are Eligible To Be Closed State And Are Not In Closed State
NOTE:736669.1 - When Updating Prices On A Blanket Agreement And Approving, Closed Blanket Releases Are Reopened Unexpectedly
Attachments
image1.jpg (85.13 KB)

Related
Products
Oracle E-Business Suite > Procurement > Procurement > Oracle Purchasing
Keywords
APPROVE INVOICE; APPROVE PURCHASE ORDER; CLOSED STATUS; DYN_PO_MASS_CANCEL; DYN_PO_MASS_CLOSE; INVOICE; MATCH
APPROVAL LEVEL; PURCHASE ORDER; RECEIPT REQUIRED
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6/3/12 My Oracle Support | Knowledge Browser | 1265680.

Modified 30-NOV-2011 Type HOWTO Status PUBLISHED

Oracle Purchasing - Version: 11.5.10.2 to 12.1.3 - Release: 11.5 to 12.1

2 Way Matching - Approve/Invoice

The level of matching (2, 3,or 4) defaults in the following order:

If Receipt Required is Yes and Inspection Required is No

If Receipt Required is No and Inspection Required is No

If Receipt Required is Yes and Inspection Required is Yes

Factor 2 - Receive and Invoice Close Tolerances

The defaulting order of these tolerances is as follows:

Level 1 – Item in the Item Master – if not found then

Invoice Close Tolerance - Defaulting Hierarchy

Level 1 - Item in the Item Master - if not found then

Here is an example of how the receipt close tolerance works.

Suppose that a purchase order line has a quantity of 100.

Factor 3 - Receipt Close Point

The receipt close point is set in the Purchasing Options.

Receive is completed - Receiving/Receipts

BUG:9682212 - PO LINE SHIPMENT STATUS CANCELLED BUT NOT CLOSED

image1.jpg (85.13 KB)

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