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Currently, when a purchase order is created from an approved purchase requisition line, the Approval status on the PO is set to "Approved" even when the Activate change management parameter is set to "Active" and an active Purchase order workflow configuration exists.


This is incorrect as the purchase order Approval status should be set to "Draft" awaiting submission and review via the configured Purchase order workflow.


This design could result in purchase orders being confirmed and sent to vendors without ever being approved. Below is ascenario where this could happen.



  1. Purchase requisition is created. The Vendor account and unit pricing is entered by the requester without confirmation with the vendor (based on previous purchases, estimate, etc.).

  2. Purchase requisition is reviewed and approved by operations staff (e.g. Project Foreman or Project Superintendent). Their focus is determining whether or not the items are required, not how much they cost.

  3. The approved purchase requisition lines are transferred to a purchase order either manually or automatically based on the Purchasing policies.

  4. Since the purchase order is "Approved", Purchasing assumes that the details have been vetted with the vendor and the necessary reviewers have approved. Accordingly, they confirm the purchase order and send it out.


This is extremely risky as the reviewers in the Purchase order workflow who are responsible for approving financial commitments never even looked at the purchase order. Consequently, the organization now has a legally binding agreement with the vendor without proper internal approvals.

STATUS DETAILS
Under Review
Ideas Administrator

Thank you for your feedback. Currently this is not in our roadmap; however, we are tracking it and if we get more feedback and votes, we may consider it in the future.

 

Sincerely,

Mai Kirknel

PM, Microsoft

Comments

C

Look at procurement and sourcing parameters > General > under section "Setup".

Category: Procurement and sourcing

C

This has been implemented. I see it in my 8.1.3 environment Procurement Parameters "Give purchase orders Draft status"

Category: Procurement and sourcing