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.