How does Vendor Overage work?
There are three options available for the Vendor Invoice Overage:
- "Limit" will stop you from posting a vendor invoice that exceed your PO amount.
- "Don't Limit" will not stop you from posting any vendor invoice even if they exceed your PO amount.
"PO Fund. Cap Adj." will allow you to post your vendor invoice but will put in an "at risk" GL account any amount that exceed your PO amount. When your PO funding is increased, your at risk amount will automatically be reversed by the system on your next vendor invoice. The PO funding cap adjustment account is configured under the Posting Groups.
The Vendor Invoice Overage feature is available at the PO Summary level and the PO Line level and they work with each other.
As an example, your the VI Overage on the PO Summary could be set to "Limit" and the VI Overage on the PO Lines could be set to "Don't Limit." That would mean that each line could go above the PO line amount but as a whole, the PO could not exceed the Approved PO Amount.
You also could have your Vendor Invoice Overage set to "PO Fund. Cap Adj." at the PO Summary level and have some of your PO Lines set to "PO Fund. Cap Adj." and others to "Don't Limit." The "PO Fund. Cap Adj." is calculated at the line level first. The system consider the outcome of those calculations to calculate the PO Funding Cap Adj. at the PO Summary Level.
The PO Fund. Cap Adj. calculated for PO Line 2 is: $200 - $300 = -$100.
The PO Fund. Cap Adj. calculated for the PO Summary is: $800 - ($600+$300+$100+-$100) = -$100. As mentioned before, the PO Fund. Cap Adj. calculated at the line level is considered in the PO Fund. Cap Adj. calculation of the PO Summary.