Keeping POs Clean: Best Practices in RealSource
We’ve all been there: you’re reviewing your department’s accounts and notice a lingering $1.50 balance on a closed PO from an early payment discount, or you realize an index code was entered incorrectly on a line that has already been paid.
In the procurement world, we call the practice of keeping these records accurate and up-to-date “Financial Hygiene.” Keeping your POs and encumbrances “clean” prevents small messes from turning into big headaches later.
1. The Golden Rule: RealSource First The most common hygiene mistake is trying to “fix” a PO in Banner without updating RealSource.
- Why it matters: Using a Journal Voucher (JV) in Banner while leaving the RealSource PO open leaves “zombie” encumbrances and can prevent the university from receiving correct eVA fee adjustments.
- The Fix: Always try to cancel (if no invoices exist) or process a Change Request in RealSource first. If a Change Request is not possible, process an encumbrance removal in Banner and then use the PO Close Request form.
2. Changing an Index? Think “Zero and Add” Need to update an index or account code that can only be done for non-catalog PO’s? Don’t just overwrite the code—that often leads to integration errors.
- The Right Way: Modify the unit price of the “old” line to zero. Then, add a new line item with the correct index.
- If you’ve already paid invoices: Simply reduce the old line item to reflect the amount already paid, and create a new line for the remaining balance.
3. The Return Rule: No Receiver, No Credit We’ve updated our guidance on Credit Memos. In the past, credits were sometimes handled informally, but to keep our books auditable, we needed a clear paper trail.
- The Step You Can’t Skip: When you return an item, you must complete a ”Receipt” in RealSource.
- Why? Accounts Payable cannot apply a credit memo to your account until that receiver is in the system. Skipping this step keeps the credit from being processed and leaves your PO balance incorrect.
4. Managing the “Small Change” (Discounts & Freight)
- Early Payment Discounts (EPD): Banner automatically runs a script at the start of every month to liquidate small balances from discounts (in the form of a small JV). If you see a tiny balance mid-month, don’t worry—the “cleanup crew” is scheduled!
- Note: If the PO has multiple discounts in the same month (or it’s a declining balance PO with invoices spanning months) and the balance remains after the cycle, you may need a manual JV.
- Surprise Freight: If a PO is closed but a freight invoice arrives later, you can pay via P-Card or create an After-the-Fact PO for the specific freight amount.
5. Avoiding the “Declining Balance” Trap Declining balance POs have a strict rule: You cannot add a Declining Balance form to an existing PO via a change request.
- The Fix: If you need to change an index on a one-line declining balance PO, it is usually best to create a new PO and close the old one.
How to Avoid Problems Before They Start
- Check the Guide: Our RealSource New User Help-Guide is your best friend. Page 70 covers Change Requests, and page 88 covers the PO Close process.
- Watch for the yellow stars in RealSource. They can guide you through a process or provide you guidance on how to use a form.
- Watch for eCatalogs: You cannot submit Change Requests on eCatalog orders. If no payments have been made, please proceed to the Close PO Request form. If payments have been made, an encumbrance removal in Banner will be required instead.
- Vendor Name Changes: If a vendor changes their TIN (Tax ID), reach out to [email protected] immediately. This requires a new vendor profile and a new PO.
Need a Hand? We’re Here! Financial hygiene is a team sport. If you’re staring at a PO and aren’t sure which button to click, don’t guess!
- Email Us: Reach out to the experts at [email protected].
- Submit a Ticket: Use the VCU IT Support portal at go.vcu.edu/itsupport.