PO Invoice Cancelled – Obligation Not Credited Back

Summary:

We have a scenario in Oracle Fusion Budgetary Control and Payables, and we’re trying to determine if there's a missing ESS job or process that would credit back the obligation after an invoice cancellation.

Scenario Overview:

• Budget allocated: $400
• Purchase Requisition created for $400
• PO created and approved for $400
• Invoice created, matched to PO, and posted for $300
• Payment made and posted
• Invoice is later cancelled

Accounting Flow:

Purchase Requisition Approved – Commitment created:

• Dr Expense Account: $400
• Cr Reserve for Encumbrance (Commitment): $400

PO Approved – Obligation created:

• Dr Reserve for Encumbrance (Commitment): $400
• Cr Expense Account: $400
• Dr Expense Account: $400
• Cr Reserve for Encumbrance (Obligation): $400