Introducing Declining Balance PO in UShop!
Prior to UShop, paper requisitions generated “cost-based” Purchase Orders (POs).
Cost-based, or “Declining Balance POs” are used to approve a specified dollar amount for purchase – against which the supplier can invoice one or more times. This type of PO is helpful when paying for services like monthly maintenance, recurring deliveries or equipment that is delivered and billed in more than one piece.
Now all UShop POs for non-catalog orders are “Declining Balance POs” – based upon total cost rather than quantity.
Users do not have to do anything to select this option – it is the default for all non-catalog UShop orders. This is a wonderful simplification in the system that will streamline the use of forms for ordering goods or services.
What do I need to know about Declining Balance POs?
Orders placed via UShop non-catalog forms:
- POs placed for either goods or services via a UShop form will be based on a dollar amount or cost.
- If a receipt is required for invoices on these Purchase Orders, it will be a Cost Receipt.
- PO will remain open until the balance reaches $0.00, or the department submits a request to close the PO. (same PO close procedures as pre-UShop POs)
Orders placed via UShop punch-out or hosted catalog supplier:
- Purchase Orders placed via a punch-out or hosted catalog supplier will continue to be based on quantity.
- If a receipt is required for invoices on these Purchase Orders, it will be a Quantity Receipt.
- PO will remain open until the full quantity has been invoiced, or the department submits request to close the PO. (same PO close procedures as pre-UShop POs)
