Closing POs related to finished Projects

  • Closing POs related to finished Projects

    Posted by Melissa Villeneuve on December 17, 2024 at 6:33 pm

    We are using Projects to track CIP for Fixed Assets. Once the asset can be placed into service as a Fixed Asset it is Finalized in Projects. We are now discovering there are open POs related to the finished projects. Are we able to change project status to close the open POs? Or should part of the “finalizing” process be closing out open POs?

    Paul Pollock replied 1 month, 3 weeks ago 2 Members · 4 Replies
  • 4 Replies
  • Paul Pollock

    Member
    December 17, 2024 at 6:41 pm
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    When a project is finalized, it’s essential to address any open POs linked to it. Finalizing a project without resolving open POs can lead to discrepancies in financial records and hinder procurement processes.

    Best Practices:

    1. Close Open Purchase Orders Before Finalizing the Project:

      • Review and Close POs: Ensure all POs related to the project are either fully received, invoiced, or canceled if no longer needed. This practice prevents issues such as budget encumbrances and ensures that financial commitments are accurately reflected.
      • Utilize the Finalize Function (optional): In D365FO, the ‘Finalize’ function on a PO prevents any further changes and releases any remaining budget reservations. This is particularly useful for locking the PO and ensuring no additional modifications are made.
    2. Implement Change Management Processes:

      • Enable Change Management: Activating change management for POs ensures that any modifications undergo an approval workflow, maintaining control over procurement activities. This is especially important in project scenarios to manage changes systematically.
    3. Regularly Monitor Purchase Order Statuses:

      • Utilize Workspaces: D365FO provides workspaces like ‘Confirmed purchase orders with changes’ to monitor and manage POs effectively. These tools help in identifying and addressing any pending actions on POs, ensuring they are appropriately closed or finalized.
  • Paul Pollock

    Member
    December 17, 2024 at 6:48 pm
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    Changing a project’s status to “Completed” or “Closed” does not automatically cancel or close associated open Purchase Orders (POs). Project status changes primarily affect project accounting and reporting, but they do not directly impact the status of related POs.

  • Melissa Villeneuve

    Member
    December 18, 2024 at 12:03 pm
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    Thank you so much for your reply, is there a one-time work around to close the POs for projects that are finalized?

  • Paul Pollock

    Member
    December 19, 2024 at 3:24 pm
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    From my knowledge, you can cancel remaining quantities on partially invoiced POs or finalize the PO. Finalizing releases any associated budge reservations, which is useful if you’re utilizing budget control for example.

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