Self Service Procurement

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    How to resolve funds not released issues on canceled...
    Topic posted August 11, 2018 by AshokBlack Diamond: 60,000+ Points, tagged Budget/Encumbrance, FAQ, How-To, Public Sector, Requisition Processing 
    74 Views, 1 Comment
    How to resolve funds not released issues on canceled requisitions
    How to resolve funds not released on requisitions that are canceled

    Problem Statement:

    Today, you can cancel requisitions even if during the process, budgetary control fails to release funds reserved against the requisition. We allow this behavior because we do not want the requisitions to be placed on purchase orders that are no longer needed and reach the suppliers. 

    Solution proposal:

    1. As discussed in a previous article, the first step is to run the Cancel Requisition Lines in Spreadsheet from Fusion Self Service Procurement to see all open commitments that need to be liquidated in a given period

    2. You then have to decide whether to cancel these requisitions or place any approved ones on a purchase order.

    3. You can set the Budgetary control default date rule to 'System Date' as opposed to 'Current Transaction Budget Date'. This will ensure that any cancellations will have the funds released in the current period.

    NOTE: 3. is set up in the FSM Task 'Manage Budgetary Control'

    4. In the event that a requisition is canceled but the funds are not released because of a closed period, you can adopt the following process:

    a) Create a report using OTBI to see all requisition distributions with Fund Status of 'Failed'. (These are the distributions that are holding funds)

    b) Create a manual encumbrance commitment journal entry for Encumbrance Accounting reversals (If applicable)

    c) Manually fix the budget

    We do not expect that you will have too many of requisitions in this status but if you do, this is the recommendation.

    We are reviewing ideas to enhance these processes including a funds check warning upon cancellation of requisitions or other alternatives. Goes without saying these are merely ideas at this time not time bound proposals.

    Hope this article is helpful. Do let us know with your comments and ratings.