We are a trading company and have many service contracts with our vendors. In our business, we are getting credit notes frequently from our vendor(s) and we are posting them against to the respective purchase order. The issue is that the credit note value is updating to purchase order not to contract! Due to this we are finding issue in creating new purchase orders.
Let me explain you with an example for your better understanding. Contract ‘A’ is having target value of 1000 USD, with reference to the same we have created 6 purchase orders with value 100 each, meaning the open contract value is 400 USD (1000-600=400 USD). Now we have received 3 credit notes for the 1st two purchases for 50 USD each, and we have posted them against to the respective purchase order. Now we are trying to create a new purchase order for 500 USD, but system is throwing up an error as ‘Target value of contract ‘A’ exceeded by 100 USD’.
As per our business users, the system should allow them to create the new purchase order with value 500 USD as they have already posted two credit notes which in tern increase the contract value by 100 USD, thus the open contract value should be 500 USD.
Regarding this issue I’ve gone through the SDN and understand that the credit note will be applied at purchase order level, and there will not be any impact to contract. I’ve informed this to my business users as well, but now they are asking what is the way to procure new services as theoretically there is left out value in contract.
Kindly help me to provide the right solution to the above scenario.
Thanks & Regards,