Quantity Blocks
The P2P Steering Group on the 13th of July 2011 agreed the following:
A new PO is required for goods where a quantity difference exists between the
original PO and the invoice. This applies no matter how small the difference. If the
value of a goods invoice matches the PO value but the item that is being bought is
split into component parts on the invoice (e.g. a computer or microscope) then a new
PO is not required.
A new PO will be required if the original PO is for quantity 1 but the invoice is for
multiple separate items.
Quantity blocks on service orders will not require a new PO to be raised. The AP
team will use a process called ‘subsequent debits’ to deal with multiple invoices
relating to a single PO. Subsequent debit values are above £25k will be routed to
Procurement Services to release. Values under £25k will be routed to Units to
release. Procurement Services will run periodic reports to identify situations where
PO values have been exceeded.
The relevant processes are outlined below.
Quantity Difference on Goods
This may occur in the following scenarios;
Scenario 1: Quantity differs but price matches.
The PO quantity is 1 and the value is £200. The invoice is received with quantity 2
but the value remains at £200. The price of the goods matches the PO and so is
assumed to be correct. The quantity entered at the invoice entry by AP will match
the PO quantity.
Scenario 2: Both Quantity and Price are different.
The PO quantity is 1 and value is £200. The invoice is received with quantity 2 and
value £400. The procedure is:
Extra Goods are valid:
1. AP team will send this to the School Nominee as a ‘Query’, asking if the
extra item is valid.
2. If the extra goods are OK the school will need to raise an extra PO for
these items, and re-assign the Query back to the AP team, ensuring that
the new PO number is stated within the notes field.
3. The transaction will appear as QRD in APW back within the “To be
Processed” tab
4. The AP team will then process the invoice as normal, pulling through
BOTH purchase order numbers.
Extra Goods are not valid:
1. AP team will send this to the School Nominee as a ‘Query’, asking if the
extra item is valid.
2. If the extra goods are not valid, the school must contact the Vendor to
arrange a credit, and reassign the transaction back to AP team, stipulating
in the notes that a credit is required.
3. The AP team will then process the invoice as normal, which will WIA out
with a price and quantity block.
4. The School Nominee will then withhold the invoice in their portal until the
credit note is work-flowed to them by the AP team.
5. On receipt of the credit, the invoice can be approved and the credit note
reassigned for processing by the AP team.
Quantity Difference on Services
Scenario 1—Quantity matches but value is LESS than PO value
The PO Value is £200 and the Quantity is 1. Invoices are received in stages
as follows:
Invoice 1 is received: Value is £50, Quantity is 1. Input invoice which would
then WIA to shopping cart creator as normal.
Invoice 2 is received: Value is £150.00, Quantity is 1. The AP Team will input
the invoice as a “subsequent debit” to avoid quantity block. The price is within
the PO limit and so the invoice will WIA out to shopping cart creator.
Scenario 2— Quantity matches but value is MORE than PO value, and
exceeds tolerances
The PO Value is £200, Quantity is 1. Invoices are received in stages as
follows:
Invoice 1: Value is £50, Quantity is 1. Input invoice which would then WIA to
shopping cart creator as normal.
Invoice 2: Value is £250.00, Quantity is 1. Input the invoice as a subsequent
debit which eliminates a Qty block, but the invoice will WIA out to shopping
cart creator with a price block since the tolerances are exceeded.
Scenario 3— Quantity matches but value is MORE than PO value, and is
within tolerances
The PO Value is £200, Quantity is 1. Invoices are received in stages as
follows:
Invoice 1: Value is £50, Quantity is 1. Input invoice which would then WIA to
shopping cart creator as normal.
Invoice 2: Value is £180.00, Quantity is 1. Input the invoice as a subsequent
debit which eliminates a Qty block, and is sent via WIA out to shopping cart
creator. A price block will not prevail as the tolerances are not exceeded.