Purchase Order Changes (10.25.21)
What is a Purchase Order Change and when Do I Need the Purchase Order Change Form (POCF)?
A Purchase Order change is necessary anytime something with your transaction has changed; whether it be changes, additions, or cancellation of items, or budgetary changes – you will want the Purchase Order (PO) to reflect those changes.
PO Changes come in several different varieties and may take different forms depending on what exactly is changing. Let’s consider the basic varieties of the PO change:
- The Purchase Order Increase: This change occurs because you have decided to add products or services to the original PO. It may be an increase in quantity of items or completely new items that require the PO to be increased in value. In order to do this type of PO change, a new Shop OnLion Shopping Cart should be submitted to add the items. Please refer to Resource #2 below.
- Note: SIMBA is designed to allow an increase through the use of a new Shopping Cart referencing the original PO. When processed, this new shopping cart will create new, separate lines on the PO for the additions. Best practice is to allow those separate lines to appear on the PO and not to combine them with existing lines. This allows for a cleaner addition for auditing purposes.
- The Purchase Order Decrease or Cancellation: This change occurs because you have decided to order less product, need an item removed from the PO, were invoiced less than what the value of the item was listed for on the PO, or have decided to cancel the order all together. To make these types of changes to the PO a PO Change Form (POCF) needs to be submitted to Purchasing for these changes to be implemented. Please refer to Resource #1 below for a link to the POCF information.
- Note: There is no option to “close” a PO in SIMBA as there was in prior systems. Instead, Purchasing can decrease or cancel the PO (depending on the situation) which will release any remaining encumbered funds. A POCF should be submitted for this action.
- The Purchase Order Requires Budgetary Modifications: These changes occur when there is a budgetary or accounting change that needs to be made on a PO. In cases where budgetary modifications need to be made, a POCF should be submitted to Purchasing that outlines the exact modifications that need to happen.
- Note: In instances where follow-on documents (Goods Confirmations or Invoices) are present on the PO, Purchasing is not able to perform budgetary modification and a Journal Entry should be performed by the department in order to alter the accounting for the expense. A POCF submitted on a PO with follow-on documents will be rejected in favor of the department doing a Journal Entry. Purchasing will not back out follow-on documents to allow for budgetary modifications - backing out those documents should only be done when there needs to be a correction made to the document (Goods Confirmation or Invoice).
If you come across a situation where you are unsure how to proceed with a PO change -the Procurement team is here to help you. Please reach out to the Purchasing Agent or Assistant that processed the PO and they can help you with the right steps to make your PO change a success. Contact information can be found in Resource #3 below.