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    Stacee Patterson
    Cancel Purchase Order or Cancel Requisition First | Which...
    Topic posted September 5, 2019 by Stacee PattersonRed Ribbon: 250+ Points, tagged Orders, Requisition Processing 
    74 Views, 10 Comments
    Title:
    Cancel Purchase Order or Cancel Requisition First | Which Order is Recommended?
    Summary:
    Cancel Purchase Order or Cancel Requisition First | Which Order is Recommended?
    Content:

    What is the recommended order to cancel Purchase Orders and Requisitions?

    Our Buyer has canceled the PO (not the lines) and the Requestors try to cancel the Requisitions, but the Cancel Requisition option is grayed out under Actions button. When Requestors try to cancel the Requisition lines, they receive the error message "You cannot perform the action because the record is canceled or finally closed." The PO status = Canceled, but the Requisition status = Approved.

    Is there a preferred 'order' of events that should take place when trying to cancel both the PO and the Requisition? Will the Requisition lines ever show as canceled or will they continue to show approved even after the PO is fully canceled?

    Thanks for your response.

    PS - Our team has already reviewed this Oracle document: When Requestor Cancels The Requisition, The Related PO Will Be Auto Cancelled? (Doc ID 2268907.1)

    Version:
    19C (11.13.19.07.0)

    Comment

     

    • Abdul Karim OMAR

      Who is cancelling the requisition Buyer or requester? 

    • Babu Chalamalasetti

      While Buyer Cancelling the PO, He gets an option whether to cancel the Requisition or not ( Unfulfilled Demand').

      If User selects 'Yes' then Req also will be cancelled. Sometimes User may not get an option as it depends on Attribute value "Cancel Unfulfilled Demand'  of Req BU.

      It has 3 values.

      a) Always : When PO is cancelled Req gets Cancelled

      b) Never: When PO is cancelled Req will not be cancelled

      c) Optional.: Buyer to decide whether to cancel or not the Req.

       

      Hope it helps.

       

    • Ashok

      Hi Stacee

      Typically, the Cancel Requisition action happens if the requester out of his/her own volition decides the items requested are not needed. Also, typically, this decision is made prior to an order being processed. Once a requisition line is converted into a Purchase Order, there is no concept as such of canceling the requisition line. You are in effect canceling the Purchase Order Line. The impact of doing this flow from either page (Requisitions page or the Purchase Order page) is dependent on who initiates said cancellation. 

      Obviously, if a buyer is canceling an order line, those are mostly related to circumstances beyond the requester's control. Perhaps the supplier does not supply the item any more. Perhaps there has been a change in procurement policy that necessitates this change, etc. In such cases, the buyer initiates said cancellation.

      Now, if a requester changes his / her mind after a purchase order has already been processed or there are other extenuating circumstances, they may do so from the Requisition flow. As long as the purchase order line is not already canceled or otherwise unavailable for cancellation, that flow will go through and create a change order to in fact, cancel the order line. 

      Long story short: It depends on why the cancellation sought that determines who initiates the flow from where. 

      Hope that helps.

    • Stacee Patterson
      Ashok - Helpful, thank you!
      
      A follow up question - In our situation the buyer canceled the entire PO document (not just the requisition lines that had been associated with this PO). The Change Order to Cancel the PO was activated and approved. Once these steps are completed, is there any additional action required by the Requester to ultimately cancel the Requisition that was associated with the now canceled PO? I'm wondering if the Requisition lines will be 'junk' in the system or if the intended behavior is to have the Requisition to remain in Approved status, even though the Buyer has cancelled their PO for whatever reason. Appreciate your reply.
      
      • Ashok

        Very good question. Canceling a purchase order line or an order has the same effect as far as requisition lines associated with that order are concerned. They stay in status 'Approved'. This is based on the design philosophy that once an order has been created, the source of truth shifts to that document and the requisition is more of an archived reference point. We don't change the status of the requisition line to Canceled. But we enforce enough control to ensure the user cannot accidentally transaction on that requisition line again and so in effect, it is 'canceled'. 

        I would prefer to called the requisition line in such events 'archived' and not 'junk' because it cans still reflect partial order fulfillments should they have occurred, partial receipts etc. Basically downstream transaction flows could have been initiated partly as well and this is reflected in the requisition's life cycle.

        Hope that answers the query.

        • Stacee Patterson

          Ashok - Another question for you regarding this same theme. We have a Requisition ABC with 6 'Approved' lines. Our buyer used lines 1,2 and 3 from ReqABC to create PO123.

          PO123 was subsequently cancelled, which leaves requisition lines 1,2 and 3 in archived state (status = Approved). However, requisition lines 4,5 and 6 still appear for the Buyer to select and ultimately create a new Purchase Order from. 

          I tried to have the Requester of ReqABC cancel lines 4,5 and 6, but the Cancel Lines option is grayed out and we are getting a 'line reinstated' message. Should our Requester be able to cancel requisition lines 4,5 and 6? Please see attached.

    • Stacee Patterson
      Abdul Karim OMAR - In this example, the Buyer canceled the PO after it had already been sent to the Supplier.
      
    • Stacee Patterson
      Babu Chalamalasetti - Kindly advise which Oracle Cloud version you are on. I don't see these options for our Buyers. We are on 19C. Thanks!
      
    • Ashok

      Hi Stacee

      To this question below:

      ==========================================================================================================================================

      Ashok - Another question for you regarding this same theme. We have a Requisition ABC with 6 'Approved' lines. Our buyer used lines 1,2 and 3 from ReqABC to create PO123.

      PO123 was subsequently cancelled, which leaves requisition lines 1,2 and 3 in archived state (status = Approved). However, requisition lines 4,5 and 6 still appear for the Buyer to select and ultimately create a new Purchase Order from. 

      I tried to have the Requester of ReqABC cancel lines 4,5 and 6, but the Cancel Lines option is grayed out and we are getting a 'line reinstated' message. Should our Requester be able to cancel requisition lines 4,5 and 6? Please see attached.

      ======================================================================================================================================

      Response:

      1. The lines reinstated ought to be able to be canceled from the Requisition.

      2. I would ask if you are in the right user login that created this requisition. Can you confirm?

      3. If the answer to 2 is yes, can you try this once again with a different flow and let know if the same issue occurs?

      4. If yes, it would be advisable to triage this through an SR.