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    Brad Stefanoni
    Procurement Visa Cards with Punchout Orders
    Topic posted March 23, 2018 by Brad StefanoniGreen Ribbon: 100+ Points, tagged Fusion, How-To, Orders, Payables 
    156 Views, 3 Comments
    Title:
    Procurement Visa Cards with Punchout Orders
    Summary:
    Procurement Visa cards and punchout orders create encumbrance issues
    Content:

    Our agency uses the Oracle Fusion Cloud Procurement/Purchasing module. Currently we place punchout orders then pay suppliers via check. We would like to design a model in which we would attach a Procurement Visa Card to pay punchout suppliers but the challenge that currently prevents this occurs with encumbrances on the expense/payables side.

    A more detailed explanation...Punchout orders in Oracle create an encumbrance transaction. Unless we pay the punchout via Invoice (write a check) for the payment, there is no way to reverse the encumbrance transaction. The attached flowchart shows the process. In a nutshell, the punchout process and the pcard process don't align.

    Does anyone have a viable solution for utilizing procurement visa cards with Oracle Fusion Cloud Procurement/Purchasing punchout orders, please?

    Thank you.

    Image:

    Comment

     

    • Ivan Pena

      Hi Brad,

      Have you considered using accrue at receipt? If so, the encumbrance will be relieved when the item is delivered to the final destination (regardless of whether it has been invoiced or not.)

      Ivan

    • Brad Stefanoni

      Thanks for your reply. I'm afraid I'm not familiar with "accrue at receipt?" Can you please share more details. Thank you, again!

      Brad

    • Ivan Pena

      Hi Brad,

      There is a flag on the PO schedule to indicate if the accrual should be created at receipt time. If so, the following accounting will happen:

      Actual - At Receipt

      DR PO Charge 

      CR AP Accrual

      Actual - At Invoice:

      DR: AP Accrual

      CR AP Liability

      Encumbrance - At delivery to final destination

      DR Reserve for encumbrance

      CR PO Charge - obligation encumbrance

      Ivan