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AnneMarie Viljoen

Purchase Orders - Partial Invoicing - Over Commits

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Purchase Orders - Partial Purchase Invoicing - Causing Over Commitment

Example

PO has Qty 3 at value 400,000 each = 1,200,000 total value (Comittment)

First Invoice Received value 450,000. Invoice created against PO

Result Commitment stays at 2 x 400,000 = 800,000 plus actual 450,000 = total 1,250,000 which represents an over commitment

How to set the partial invoicing to also look at the value of the PO, not just the qty i.e. on the commitment the qty is updated but not the remaining value of the commitment PO

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  • 0

    Commitments get their value when a  PO is created. When a receipt (full / partial ) is processed, the value of the receipt becomes an actual expense and passed on to the invoice. That is standard process flow,

  • 0 in reply to AndrewV

    Hi Andrew - I agree but my question is around the price/value on a PO with more than one qty. If you create a PO with 3 lines and 3 different values (each line there own value) You have a Total Commitment of the sum of all 3 lines. Now when you invoice the 1st line but the value is higher than the value of the PO line 1 then the invoice amount goes to actual BUT the PO/Committed balance does not adjust for the higher value of the invoice which results in a Commitment + Actual greater than the budget. My question is how do you get the PO to not just adjust the qty but also the remaining financial value on partial invoices. PO to PIH

    Thanks

Reply
  • 0 in reply to AndrewV

    Hi Andrew - I agree but my question is around the price/value on a PO with more than one qty. If you create a PO with 3 lines and 3 different values (each line there own value) You have a Total Commitment of the sum of all 3 lines. Now when you invoice the 1st line but the value is higher than the value of the PO line 1 then the invoice amount goes to actual BUT the PO/Committed balance does not adjust for the higher value of the invoice which results in a Commitment + Actual greater than the budget. My question is how do you get the PO to not just adjust the qty but also the remaining financial value on partial invoices. PO to PIH

    Thanks

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