Procurement

Welcome to Fiscal Year 2018!

We've completed the annual rolling of the University's POs. Approximately 5,000 POs were rolled into the new fiscal year. These POs may now be received and vouchered against. Please follow the steps below to determine which POs, if any, need to have further action taken on them.

Step 1 Clusters must resolve budget errors by July 13 or the PO will be closed

Look at the spreadsheet below to see whether any of your POs rolled into the new fiscal year in budget error status. POs in budget error status cannot be received or vouchered against.

List of POs that closed, rolled, or have budget errors (xlsx)

If you have a PO in budget error status, you will need to work with your department to either:

  • create a budget journal for the ChartField string to make it valid in the new fiscal year, or
  • have your procurement specialist enter a PO change order to charge the remaining PO's balance to a different, valid ChartField string. These change orders will route for approval.

Purchasing Services will force close any POs in budget error that are not resolved by July 13 to prevent these POs being trapped in permanent budget error status when period 913 closes.

Step 2

Look at the spreadsheet below and see if any of your POs were closed during the cleanup. No U Market POs are listed on this spreadsheet, since the orders should all have been fulfilled. If you have questions about U Market orders, please contact U Market Services.

List of POs that closed, rolled, or have budget errors (xlsx)

If a PO was closed and you want to know why, look to the spreadsheet's "Reason" column. The reasons why we close POs are grouped into two primary types: volume reduction and ineligible to roll criteria.

Why Did My PO Get Closed?

Every year the University closes thousands of POs at fiscal year-end to eliminate POs that are ineligible to roll due to errors on the PO or its related receipts or vouchers, and to reduce the volume of activity in the system that would quickly close in the due course of business.

Closing POs at the end of a fiscal year is standard practice at all universities and businesses. Most places close all of their POs at the end of a fiscal year. To meet the needs of our community, the University of Minnesota chooses to roll certain orders over into the new fiscal year. This is a time consuming and cumbersome process that takes days to complete, even when rolling over just a small percentage of our activity.

PO Closure Logic

Each year the volume of open purchase orders at the U is reviewed. This is done to help clean up orders that appear to be no longer needed and eliminate some of the time and resources it takes to maintain and monitor these POs.

Reason/Criteria for Closure

Why These POs

U Market POs (excluding equipment orders using Account codes 85101 or 85104). U Market POs are our highest volume and are typically paid within 30 days. We eliminate them to reduce the volume of POs that need to be rolled.

Remaining encumbrance is less than $2,500.

Since they are low dollar amounts below the asset threshold ($5,000), we eliminate them to reduce the volume of POs we need to roll.

Blanket orders totaling less than $50,000 and are 3+ years old. Clusters were sent a spreadsheet of POs meeting these criteria prior to the FYE cleanup deadline.)

Departmental blanket orders less than $50,000 should not exceed three years (University business process).

POs created before April 1, 2016 with no voucher activity on them within the last 15 months. A spreadsheet of POs with these criteria was sent to procurement specialists prior to the FYE cleanup deadline.)

There are too many old, forgotten POs that roll from year to year and are never vouchered. We are taking action on them since it's likely they are no longer needed.

"Ineligible to Roll" Criteria Closures

PeopleSoft Financials (EFS) enforces various criteria for PO rolling. These criteria have been the same since EFS' inception in 2008 and cannot be overriden by the University. These POs will not roll, there is no choice but to close them.

Reason/Criteria for Closure

Why These POs

PO line(s) with a $0 amount.

The preparer entered a $0 line (e.g., a free item) in the requisition or the procurement specialist reduced the line down so that it totals $0. PeopleSoft does not know how to relieve $0 encumbrances when crossing fiscal years. As a result, it does not allow these POs to roll.

POs with partially vouchered receipts

Since the PO is tied to a voucher that is tied to a fully received PO line in this fiscal year it will lock down that PO line(s) to the old fiscal year, making them ineligible to receive or voucher against in the new year. This makes the PO ineligible to roll.

POs with match exceptions.

Since the PO is tied to a voucher that is "stuck" in error in this fiscal year it will lock down that PO line(s) to the old fiscal year. This makes the PO ineligible to roll.

POs with unposted vouchers

Since the PO is tied to a voucher that never posted, it will lock down that PO line(s) to the old fiscal year, making them ineligible to receive or voucher against in the new year. This makes the PO ineligible to roll.

POs with unapproved vouchers

The PO is associated to a voucher that has a non-PO voucher line that was not approved by the approver at the cutoff. Since the PO is tied to a voucher that is "stuck" in pending status (an unposted voucher) in this fiscal year it will lock down that PO line(s) to the old fiscal year. This makes the PO ineligible to roll.

POs with inactive supplier records (location, address, etc).

A PO was created and the supplier record was inactivated thereafter. Since the PO will be unable to be vouchered against, this makes it ineligible to roll.

POs in an ineligible status for rolling

POs must be in dispatched status to roll. If a PO was in the following status it was force closed because it was ineligible to roll: approved, pending approval, sent back, or open.

PO in budget error status prior to the roll.

POs with budget errors should have been cleaned up before the FYE. They were ineligible to roll. Since they will forever be trapped in this fiscal year, we force close them. Not only did these POs close, unfortunately the encumbrances cannot be relieved either.

If a PO Closed Unexpectedly

If a PO closed unexpectedly and a supplier still needs to be paid for delivered goods or services, use the process below that pertains to your PO's situation.

A. Determine how to pay the supplier for the PO's unpaid services or goods.

Criteria Remaining amount is $0 - $9,999.99 Remaining amount is $10,000 - $49,999.99 Payment is $50,000 or Greater
Is this a U Market PO? (Supplier ID on PO begins with "SQ-") Do NOT re-create the order. No further action is needed! If the PO was received by the U Market supplier by the deadline, the order was placed. U Market Services will pay the supplier. Questions? Contact U Market Services: umarket@umn.edu or 612-624-4878.
Is the good or service on the Non-PO Payments list? Items on this list may be paid for by a voucher (preferred), or use the PCard. If using a PCard, it must comply with PCard policy and departmental practices, or create a voucher. State that the original PO was closed during the fiscal year-end process and reference the original PO number in the PCard transaction's justification or the voucher's justification. Items on this list may be paid for by a voucher (preferred), or the PCard. If using a PCard, it must comply with PCard policy and departmental practices. Reference the original PO number in the voucher's justification. Anything on this list may be paid by a voucher. Reference the original PO number in the voucher's justification. Vouchers will route to Accounting Services for approval.
Were any items on the PO for equipment (Account codes 850101 or 850104)? Create a new requisition/PO. Reference the original PO number in the requisition's justification. Create a new requisition/PO. Complete the special year-end version of the UM 1819 Form (docx) and attach it to the requisition's header comments. Reference the original PO number in the requisition's justification. Create a new requisition/PO using the following instructions from Purchasing Services.
Is this the only or last payment? Create a voucher (preferred), or use the PCard. If using a PCard, it must comply with PCard policy and departmental practices, or create a voucher. State that the original PO was closed during the fiscal year-end process and reference the original PO number in the PCard transaction's justification or the voucher's justification. Create a voucher. State that the original PO was closed during fiscal year-end and reference the original PO number in the voucher's justification. Create a voucher. State that the original PO was closed during fiscal year-end and reference the original PO number in the voucher's justification. Vouchers will route to Accounting Services for approval.
Are there multiple payments that still need to be made? Create a new requisition/PO. Reference the original PO number in the requisition's justification. Create a new requisition/PO. Complete the special year-end version of the UM 1819 Form (docx) and attach it into the requisition's header comments. Reference the original PO number in the requisition's justification. Create a new requisition/PO using the following instructions from Purchasing Services.
Do additional items or dollars need to be added? Create a new requisition/PO. Reference the original PO number in the requisition's justification. Create a new requisition/PO. Complete the special year-end version of the UM 1819 Form (docx) and attach it into the requisition's header comments. Reference the original PO number in the requisition's justification. Create a new requisition/PO using the following instructions from Purchasing Services.

Conditional: Determine whether to send a copy of the new PO to the supplier.

If a new requisition/PO must be created, determine whether to send the new PO to the supplier. If you are unsure, ask the supplier whether they would like the new PO sent to them. If the supplier does not need it, the requisition preparer, approver(s), and procurement specialist must work together to expedite the requisition to a PO. Once the PO is created, the procurement specialist must manually change the PO's dispatch method to "phone".