Reducing Purchase Order Commitments to Zero (SAP Library

Reducing Purchase Order Commitments to Zero

Use

The system reduces purchase order commitments to zero according to goods or invoice receipts and converts them into actual costs. As the quantity (down to zero) determines the reduction of a purchase order commitment to zero, you need quantity-based commitment management.

If values for purchase orders, goods to be delivered, and invoices are to determine the reduction (to zero) of a purchase order commitment, then you need value-based commitment management. To set up value-based commitment management per unit of measurement, choose General Settings ® Check Unit of Measurement in Customizing.

Unlike purchase orders for materials, those for services are monitored on the basis of value, not quantity.

Features

When the Commitment is Reduced

The goods receipt indicator in the purchase order determines when the commitment is reduced and actual costs are set up (that is, in the detail screen for the purchase order item).

GR indicator set: Commitment is reduced when goods are received.

GR Indicator is not set: Commitment is reduced when invoices are received.

Reducing Commitments to Zero

You can reduce the purchase order commitment proportionally. To do this, you need to enter a goods receipt or invoice receipt for a purchase order.

The system reduces purchase order commitments completely:

If you indicate the business transaction as closed, with a goods receipt for a purchase order item.
It could be that the total quantity for a purchase order item has not been delivered, but you expect no further deliveries. In this case, you must set the "Delivery completed" indicator when you post the goods receipt.

If you indicate the business transaction as closed, with an invoice receipt for a purchase order item.
when you post the invoice, you can set the indicator in the purchase order item to indicate that you do not expect any more incoming invoices

If you set the "Delivery completed" indicator in the purchase order item.
Assuming that you ordered six pieces of a given item and only five were delivered, and if you agree with the vendor that the missing item no longer need be supplied. If you end the business transaction by setting the indicator in the purchase order item.

If you lock a purchase order item to prevent goods receipt for that item.
This is possible providing no goods or invoices have been received.

If you delete a purchase order item.
The purchase order item is marked for deletion but initially stays inactive in the system You can only delete completed purchase order items (for example, there can be no deliveries or invoices outstanding, either for the quantity ordered or for the quantity which appears in the invoice). If you wish to delete outstanding items, you need to set the "Delivery completed" indicator in the purchase order item first.