"This line was reinstated from line 1. The line amount is not included in the requisition total amount".

Questions

Hi Team,
I am having strange case for one requisition that requires your inputs on that. Kindly please give some insight on below case.
SR Number - SR 3-12938798379: Requisition created 2 PO's causing duplicate

We have an issue where Requisition number 539 for amount 94039.57 GBP has generated 2 PO's with the same amount 94039.57 GBP on each PO.
This could have allowed us to match and Pay both the PO's to the supplier casuing a Duplicate Payment.
Could you please check and suggest what has caused raising a Duplicate PO and how to stop this.
The Purchase Orders are: 229 and 1086
Please refer to the attached screenshot and data collection files.

My Finding on the given SR -
1. Requisition was created from Contract Purchase Order Number 611 with one line, total amount as 94039.57
2. Two lines are there in requisition with amount as 94039.57 indiviusally, where one line action stated as - "This line was reinstated from line 1. The line amount is not included in the requisition total amount".
Requisition header total amount is 94039.57
3. Two different POs are created with two different lines.

Client Expecatations -
How this duplicate lines are created in requisition and why requisition header amount is not being update.
Why this two duplicate POs are created.

Answere

Hi Pramod,

Reinstatement occurs when a PO is created (for a requisition) and the PO is canceled and the person canceling the PO still needs the items delivered/services fulfilled (the person chooses not to cancel the unfulfilled demand). In such a scenario, when the PO is canceled, a new requisition line with the balance of the unfulfilled demand is automatically created and added back to the Buyer's queue or automatically turned into a PO. This line will also appear in the requisition document and it will have an icon indicating it was a reinstatement. In addition, to avoid double counting, the amount from this reinstated line is not used in computing the requisition header amount

An example:
I ordered 10 pieces of an item (requisition with 1 requisition line of quantity 10) and this was sourced to Supplier 1 (i.e. a PO was created against Supplier 1). Supplier 1 then comes back to me and says - we are out of stock and new stock won't be available for another quarter. Because I need the items urgently, I decide to go with another Supplier (Supplier 2). To do this, I need to cancel the existing PO against Supplier 1 and create a new PO against Supplier 2. When I cancel the PO against Supplier 1, the Application will automatically create a new requisition line (which is a duplicate of the existing line i.e. Line 1). In the requisition document, the new line (Line 2) will show up with an icon indicating it is a reinstatement of Line 1. Because Line 2 is a reinstatement, the amount from the line will not contribute towards the requisition amount.