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Accounting Disconnect when Contract is Awarded from Solicitation

edited Aug 9, 2024 2:51PM in Purchasing 2 comments

Summary:

When using a Requisition to source a Negotiation/Solicitation, the system will pre-encumber or "reserve" the funds in the budget as a commitment. In a normal scenario (with or without a soliciation), that Requisition commitment turns into an obligation/encumbrance once that requisition is converted into a Purchase Order.

What we have seen with our clients is, when a req gets converted into a solicitation, then a PO is awarded directly from that solicitation - the req commitments turns into PO obligation/encumbrance as normally expected. BUT when a requisition gets converted into a solicitation, then a CONTRACT is awarded from that solicitations and POs are created from the contract lines - the requisition and PO both book/reserve funds in the budget.

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