Closing the purchase order period

Note: The frequency that you send purchasing and inventory activities to the general ledger is determined by your organization.

You close the Purchase Order period to make sure that all purchase order activity has been updated to the General Ledger application. The following procedure shows you how to close the Purchase Order period.

Procedure flow: Closing the Purchase Order period

To close the Purchase Order period

  1. Optional. Run Unreleased Receivings Listing (PO230).
  2. Access Receiving Approval and Release (PO35.1).
  3. Enter and release receivers.
  4. Send journal entries for inventory items to the general ledger using General Ledger Interface (IC130).
  5. Send RNI journal entries for all purchases to the general ledger using Received, Not Invoiced Report (PO135).
  6. Optional. Run Invoiced, Not Received Report (MA236).
  7. Optional. Standard cost companies can run Standard Cost Calculation (PO139) to create reversing journal entries for the difference between purchase order cost and standard cost for inventory items. For information, see Standard Cost Calculation.
  8. Report on invoice details that were processed without a received quantity using the Matched, Not Received Report (PO136).
  9. To report on received, not invoiced receipt lines (and the invoice lines tied to them), run the RNI Aging Report (PO278). Receiving staff, buyers, and Accounts Payable staff can run PO278 throughout the month to resolve these receipts and reduce the RNI amount for the next period.
  10. If you want to close historic purchase orders, run the history report for purchase orders using Close Purchase Order Header (PO190).
  11. If you are using subsystem control as defined in the General Ledger application, close the Purchase Order application using Subsystem Close (PO199).

    When you run the program, indicate whether you require inventory receipts be released before closing the subsystem and whether PO135 must be run in Update mode for the period being closed.

Related reports and inquiries

To Run
Audit posted transactions by period for a specific accounting unit and account Departmental Procurement Expense Inquiry Selection (MM80)
List general ledger postings broken down by accounting unit and account Departmental Procurement Expense Report (MM280)
Related topics