• Skip to Content
  • Skip to Main Navigation
  • Skip to Search

Indiana University Indiana University IU

Open Search
  • Training
    • Training Paths
      • Accounts Payable
      • Accounts Receivable
      • Approvers
      • Financial Processing In KFS
      • P-Card or Meeting Card
      • Payroll
      • Purchasing
      • Reporting
      • Travel
    • Handouts
    • Course Catalog
  • Documentation
    • Accounts Payable
      • Credits and Refunds
      • Invoice Review
      • Invoice Submission
      • Payment Details
      • Reimbursements
      • Stop Payments
    • Accounts Receivable
      • Credit Memos
      • Customers
      • Document Searches
      • Invoices
      • Receiving Payments
      • FAQ
    • Capital Assets
      • Configure
      • Inventory
      • Manage
      • Purchase
    • Kuali Financial System
      • IU Foundation
        • IUF Account Management and Reimbursement FAQ
      • System Overview
      • Administrative Documents
      • Financial Processing Documents
      • Balance Inquiries
    • P-Card
    • Purchasing
      • System Overview
      • Catalog Orders
      • Change Requests
      • Check Requests
      • Contracts and Signatures
      • Non-Catalog Orders
      • Order Building and Management
      • Searches & Dashboards
      • Receipts
    • Reporting
      • Emburse Enterprise Reporting
    • Suppliers
      • Edit
      • Request
      • Review
      • Search
    • Travel
      • System Overview
      • Approving Reports
      • Booking IU-Prepaid Travel
      • Reimbursing Travel
      • Trip Authorization
  • News & Events
    • Articles
      • Accounts Payable
      • Accounts Receivable
      • Capital Assets
      • Kuali Financial System
      • P-Card/Meeting Card
      • Purchasing
      • Suppliers
      • Travel
    • Subscribe
  • About Us
    • Meet the Team

Financial Training & Communications

  • Home
  • Training
    • Training Paths
    • Handouts
    • Course Catalog
  • Documentation
    • Accounts Payable
    • Accounts Receivable
    • Capital Assets
    • Kuali Financial System
    • P-Card
    • Purchasing
    • Reporting
    • Suppliers
    • Travel
  • News & Events
    • Articles
    • Subscribe
  • About Us
    • Meet the Team
  • Search
  • Home
  • News & Events
  • Articles
  • Purchasing
  • When to Close POs

When to Close POs

Friday, March 17, 2023

When is it appropriate to close your purchase order (PO)? The list below summarizes when a PO should be closed. Read on for additional details on each and tips for fiscal year-end.

  • The wrong supplier was used when creating the PO.
  • All expected invoices have been paid but the PO remains open.

The wrong supplier was used when creating the PO

Unfortunately, it’s not possible to swap suppliers on a purchase order. If you find the wrong supplier was selected when building the order, close the existing PO and submit a new requisition using the correct supplier record. Be sure to notify the supplier that a replacement PO is headed their way so they know to use it for future invoices.

All expected invoices have been paid, but account encumbrances remain

Depending on how invoices were applied, a PO may remain open after all invoices have been received and paid. If this is the case, fully close the PO by navigating to the three dots (next to the help icon at the top of the PO) and select Close PO from the menu. This releases account encumbrances.

Fiscal year-end tips

Existing PO encumbrances roll forward to the next fiscal year automatically. This is a good thing! This means that orders that haven’t been fulfilled can remain open and continue to receive invoices and make payments into the new fiscal year.

Do not close a PO if you’re expecting additional shipments or services to be performed. The PO should remain open until all invoices are received, regardless of the fiscal year.

Closing a PO prematurely can delay the supplier’s payment and affect other IU department’s ability to place new orders. If you need assistance determining whether a Purchase Order should be closed, you can log a comment to the PO and tag the Purchasing Helpdesk.

  • Articles
    • Accounts Payable
    • Accounts Receivable
    • Capital Assets
    • Kuali Financial System
    • P-Card/Meeting Card
    • Purchasing
    • Suppliers
    • Travel
  • Subscribe

Additional links and resources

INDIANA UNIVERSITY
Financial Training & Communications

Cyber Infrastructure Building (CIB)
2709 E 10th St
Bloomington, IN 47408
Email:
estc@iu.edu

RELATED SITES

  • Finance
  • Office of Procurement Services
  • Insurance, Loss Control, and Claims
  • Office of the Treasurer
  • Office of the University Controller
  • Purchasing
  • Supplier Diversity
  • Travel Management Services
  • University Budget Office

Indiana University

Accessibility | College Scorecard | Privacy Notice | Copyright © 2025 The Trustees of Indiana University