2 Replies Latest reply on Jun 23, 2014 12:01 PM by Kris Compton

    PO change orders are not making encumbrance entries

    Kris Compton

      We're using R12.1.3 and I found an error a few weeks ago with encumbrances. When a change order is done on a PO in Procurement, the encumbrance for the change order is not transferring to the GL. The Subledger Period Close Exception report shows the status as "draft." I can View Accounting on the PO and see the change order accounting entry sitting in Draft status. Because the PO amount is increased, we can match and pay invoices up to the amount of the PO. This results in encumbrances being reversed (invoices) which were never recorded and several GL funds and accounts have a year to date negative balance.

       

      For example:

      PO  is issued for $40,000 in September.  Obligation is recorded in the GL for $40,000.

      Change order is done in February, increasing the PO by $50,000. No encumbrance entry is sent to the GL - journal is in draft status in Procurement.

      Total PO balance is $90,000 but only $40,000 is recorded as an obligation.

       

      AP matches invoices to the PO totaling $90,000. Obligations are relieved in the GL for each invoice amount.

       

      The GL effect is:

      $40,000 encumbered

      ($90,000) relieved

      ($50,000)  Year-to-date fund encumbrance balance

       

      I'm waiting for our technical team to open an SR with Oracle Support but has anyone experienced this? Any ideas what is causing this and how to get the "draft" status entries transferred to the GL as "final."

      Kris

        • 1. Re: PO change orders are not making encumbrance entries
          2669031

          Dear Kris, We are also facing the same issue.Did you get a suggestion or solution from oracle?

           

          Thanks,

          Thanigaivel

          • 2. Re: PO change orders are not making encumbrance entries
            Kris Compton

            No, I’m still waiting for our Help Desk technicians to open an SR with Oracle about this. I first reported it on May 5 but they haven’t opened an issue yet. We’re meeting today so I can find out what they’re waiting for.

             

            We currently have 41 pages of Procurement transactions in “draft” status that our Procurement dept reported to Oracle a few months ago. Oracle closed that original SR and said those transactions weren’t needed in the GL and they would just stay in draft forever. In May, I discovered most of the drafts are from change orders and those ARE needed in the GL.

             

            When we get a response and a fix from Oracle, I’ll update this message with the results. I hope it’s a quick fix!

             

             

            Kris Compton