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Can you please check what is the value set for the profile option "PO: Set Debug Workflow" . If this is set to Yes, then change this to No & try to approve the PO. Let me know if you are still facing any issue.
If encumbrance is ON the check whther U have sufficient fund available against that PO .
I had similar issue in Purcahse Requisitions where requistions get stuck in reserve status and get approved after clicking on retry.There is a bug.
Select for a particular item key.Click on activity history.Again select activity .And click on retry tab.P.O. will be approved.