EPIC Credit Memo Processing Reopens POs

If you see an open PO when you expected to see a closed PO, check to see if the last payment document processed was a credit memo. 

Step 1.  Click “Search for Documents”

 

Step 2.  Select the Purchase Order tab, enter a Purchase Order number, and click “Search”

Step 3.  Click on the PO Number

Take a look at the line items in PO.  If all transactions are complete and there will be no future invoices, it is okay to close the PO.  Please add a note explaining that you closed the PO because all transactions are complete. 

You can see on the Payment/Credit tab if it was a Credit Memo approval that reopened your PO.

So what happened?

The EPIC system presumes that an invoice will follow a credit memo and, as such, reopens the PO when the credit memo is AP Approved.

When does this occur?

Let’s run through an example of when a credit memo might occur.

  • You order 10 reams of paper.

  • When the paper arrives, two of the 10 reams are water damaged, so you return them to the vendor.

  • Although you returned two reams of paper, IU will pay the full invoice as billed and then receive the vendor’s credit to offset a future payment.

  • When the credit is processed, all of the accounting is even.  You have possession of eight reams of paper and you’ve paid for eight reams of paper.  If the vendor reships two reams, the vendor will invoice for two reams and the PO is open and ready. If you asked the vendor to not ship the two reams, then the PO is complete and can be closed. There are no further transactions expected.

Please direct any questions regarding the credit memo process to Charlie Sinex at csinex@indiana.edu.

Source:  Charlie Sinex

July 2009 Newsletter

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