When to close purchase order requistions

September 4, 2019

Recently, Yale Procurement has noticed an marked increase in purchase order (PO) closure requests. These “Close Purchase Requisitions” are submitted to close issued POs. Not all issued POs need to be closed. This action should only be taken when the PO is fully received and invoiced and there is still an outstanding obligation.

To determine whether there is an outstanding obligation on a specific PO, individuals may view the PO and click the Balances tab above the PO lines.  If the Obligation Amount Remaining is $0.00, there is no need to close the PO.

To review the department’s list of POs and their balances, individuals can run the report named “Find Purchase Order by Cost Center – Yale.” This will include the obligation information for review. PO’s that  meet the below criteria should be sent to Procurement for closing.

Purchase Orders that meet all the following criteria are eligible to be closed by Purchasing Services:

  • All goods are received and/or services are complete; and
  • the PO has a remaining balance (obligation); and
  • all anticipated invoices have been received and paid.

An exception to this is if you have replaced a fully -invoiced, service-line PO with a new PO. In that case, individuals can submit a close request for the original PO to prevent the supplier from invoicing the obsolete PO. The column named “Is Service Order Line” next to the line description on the report identifies service lines.

To reduce non-value-added work, please note that POs with a status of ‘Issued’ and a zero-remaining balance (obligation) will not be closed by request. These purchase requisitions will be returned to the requisitioner.

For any questions or inquiries, please contact Yale Procurement purchasing.helpdesk@yale.edu.