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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 
    196 Views, 18 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.

        • Haydee Mercado

          Hi Ashok-

          I actually have the same scenario with this one. So our scenario is that, Our user Create a PR and process it till Purchase Order where the PO was process till Approved. Then later on they decided to Cancel this PO (as change order) with some reason, however when they cancel this PO they choose the "Cancelled Unfulfilled Demand = No" making the Requisition to be available to the Buyer Workbench. But they decided they no longer need this requisition and should be cancelled, so they decided to Return this to the Requester to cancelled, but as the requester cancelled the PR the same error ""You cannot perform the action because the record is canceled or finally closed." was encountered. And makes the PR no longer available for any update.

          Does this mean that when the Buyer - reassigned the PR back to requester the PR was treated as cancelled or what?

           

          thanks

          Haydee

          • Ashok

            Hi Haydee

            If the buyer cancels a Purchase Order with 'Cancel Unfulfilled Demand' set to value 'No', as you point out, the requisition lines corresponding to the original Purchase Order are canceled and new lines are instated (we call these reinstated lines). 

            Reading the details you have provided, it does seem that you are suggesting the following:

            a) Requisition had Lines 1 and 2

            b) These were converted to a Purchase Order

            c) Purchase Order Line 1 (for example) was canceled

            d) Value for Cancel Unfulfilled Demand was No

            e) This means Line 1 on the requisition will stay approved (but is in fact canceled) and a new line, say Line 3 ought to have been instantiated in the Process Requisitions queue

            f) Now buyer returns Line 3 (reinstantiated Line) to the requester

            Am I right so far?

            Now, are you saying that when the line is returned to the requester, this Line 3 cannot be canceled? This behavior I have only seen for Externally Managed Lines, i.e. for requisitions that are not created or managed through Self Service Procurement but through integrations. Not sure if that is your case.

            In other words, if you are creating this requisition and managing it through the Self Service Procurement application and this flow is as you have described, when the buyer returns the requisition line, it should simply assume status of Returned and ergo, be available for Cancel.

            Do provide screenshots for more clarity.

            • Haydee Mercado

              Hi Ashok-

               

              Please see attached file for the actual scenario and testing.

              Thanks

              Haydee

              • Ashok

                Hi Haydee

                Brilliant stuff! Thank you for taking the trouble and providing these detailed screenshots. What we did not discuss earlier was something I noticed in your screenshots: This is budgetary control enable requisition. I will need to dig a bit deeper to confirm if this is designed behavior for such cases. I was responding without that information from earlier details. For normal requisitions, I don't believe the line is automatically canceled upon return.

                I will revert hopefully today or latest tomorrow. Thanks for your patience.

                Regards
                Ashok

                • Haydee Mercado

                  Thanks Ashok. I will await for your further inputs on this one.

                   

                  Regards,

                  HAydee

                • Haydee Mercado

                  Hi Ashok-

                   

                  Any further inputs on this case?

                  Thanks

                  Haydee

                  • Ashok

                    Hi Haydee

                    I had responded on this a while ago. I did not reply to this as the readability is largely compromised the more indented the response is. Please read through the end of this post. You should find my response almost toward the end of the post.

    • 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.

    • Ashok

      Haydee and Stacee

      Both of you have reported similar, if not the same behavior. I just had to review it internally to ensure I was not missing anything before I respond. I have done that and here is my response:

      1. Your observations are correct and per designed behavior. i.e. A buyer returning a reinstated line (whether BCEA enabled or otherwise) constitutes a 'Cancel' operation to be invoked on the requisition line

      2. The fact that the original requisition line does not allow Cancel operation either is expected as that line is effectively replaced with the new reinstated line.

      Now, as to why this behavior is such:

      While I wait on some of the folks that were originally involved in this, I believe this is designed so because, what the buyer has done by canceling the Purchase Order line and retaining Unfulfilled Demand is simply expressed his/her intent to process this line again perhaps against a different supplier, different agreement etc. In other words, this line is alive and active only to be made available for a downstream procurement process. The functional assumption is that the line does not need inputs at this stage from the requester because if that was needed, the buyer would have perhaps returned the original line already and had the requester do the needful. So, when the buyer now returns this 'Reinstated' line to the requester, the system simply assumes this line is no longer needed and so cancels it. This explains the behavior you see which is that the error message is displayed when you try to cancel that line again. But then, that is also fairly clear already because the line is in status 'Canceled'.

      If I learn of any other functional reasoning on why this behaves as such, I will revert.

      Thanks

      Ashok