Advanced Purchasing Training in Core-CT Financials

1. State of ConnecticutCore-CT Continuing Education Initiative Intermediate Purchasing

2. Welcome to Advanced Purchasing! • Instructor Introduction • Participant Introduction • Training Facility Orientation • Ground rules

3. Course Goals • To give students a greater understanding of their place in Core-CT, an integrated financial system. • To instruct students in the Core-CT recommended approach to Purchasing. • To help students maximize the capabilities of Purchasing and use their work time efficiently.

4. Agenda • Overview • Core-CT Financials • Purchasing Roles/Responsibilities • Purchasing Process Flow • Purchase Order Review • Review an On-line PO • Review Amount/Quantity PO • Distributions • PO Change Orders • Change an Amount Only PO • Change a Quantity PO • Schedules

5. Agenda • Canceling a PO/Line • Sourcing Workbench • Buyer’s Workbench • Requester’s Workbench • PO Reports

6. Handout • The handout has the same screen shots as the in-class presentation, but has been designed as a Step by Step guide that you can use back at your office. • You will also receive Job Aids and information you can use as references.

7. Core-CT Financials Overview

8. General Buyer: This role is responsible for the full range of purchasing activities of an agency. Tasks include; correcting purchasing authority, confirming orders, defining PO schedules and distributions, saving and correcting POs, and creating PO change orders. Program Buyer: This role is responsible for contracting with POS/PSA, MOUs, Construction, RLs, Rights of Way and Grant providers for agency run programs. Tasks include entering contracts, allowing contract releases, creating online POs and creating PO change orders. PO Amount Approver 1,2 : This role is responsible for approving POs for all amounts (Approver 1 authorized up to $10,000, Approver 2 authorized for any amount under $1,000,000. If your PO Obligation is over $1,000,000.00, OSC Approval will be inserted after the agency Amount Approvers as a NEW Step in the approval process. PO Budget Approver: This role is responsible for approving the purchase order and the budget Chartfield in workflow. General Receiver: This role has access to receive on all ePro and PO transactions in their business unit including inspection functionality, penalty assessment and Chartfield information. Casual Receiver: This role is responsible for receiving goods only on requisitions they created. Roles and Responsibilities

9. Online (Manual) PO: Purchase Order Created in the Purchasing Module Status: “Open” PO Closed and Reconciled: Closing a PO sets the status of the PO to “Complete” and signals that the PO is completely processed. Reconciling a PO releases any unused encumbrances associated with the PO. Agencies should perform this weekly. Status: “Complete” PO Submitted for Approval: Initial Status: “Pending Approval” Resulting Status: “Approved” Amount: Amt 1 (<$10,000) Amt 2 (<1,000,000) OSC Approval – If PO Obligation over 1,000,000 Chartfield: PO Budget Approver PO Budget Checked: Validates sufficient funds are available for the proposed purchase by coding string. If sufficient funds exist, an encumbrance is created for the PO. Batch Frequency: 10am, 12pm, 2pm and once overnight. Budget Status: “Valid” Start Invoice Processed by AP and Payment Issued to the Vendor: The vouchers are created, approved and “Matched”. Additionally, the Pay Cycle Runs and payments are issued to the vendor. End PO Dispatched to the Vendor: PO delivered to the vendor by fax, email, or print method. Batch Frequency: 10am, 12pm, 3pm and once overnight. Status: “Dispatched” Return to Vendor: Currently Not Used – If items delivered by the vendor do not meet State expectations, the items can be returned to the vendor. Order delivered by vendor and received in Core-CT: Both Goods and Services are received and keyed into Core-CT. Resulting Status: “Received” PO Life Cycle

10. Purchasing Process Flow ePro Requisition Budget Check Dispatch Purchase Order Receiving Amount Approval ChartField Approval Payables Budget Check Exceptions PO Change Orders Sourcing Workbench Buyer’s Workbench Requester’s Workbench

11. Steps for Creating a Purchase Order PO Form page: Select a Vendor, select a Buyer Header Details page: Select PO Type PO Defaults page (if applicable): Set up PO Defaults – Category, UOM, Ship To, Distribution (quantity or amount), Chartfields, Asset information Lines: Description, PO Quantity, UOM, Category, Price Line Details page: PO Authority, Receiving, Physical Nature Schedule page: Ship To information Distribution Lines page: Chartfields, Asset information, Item information (if you did not set them up on the PO Defaults page) PO Obligation Tab: Enter total obligation if greater than PO Total Amount 9. Click the green check mark icon, click the Save button. The Purchase Order is ready to be approved.

12. Entering a Purchase Order • Add comments link (Header Comments) should contain comments that will pertain to the entire PO. The comment balloon is for line comments as they pertain to each of the lines in the PO. If you are adding an attachment it would be added in the comments section. • Enter Line Information • Description – give a concise but accurate summary of what is being purchased. DAS uses this field to analyze purchases, so when you’re entering the info, think in terms of how meaningful it will be to someone else down the road. • Enter PO Qty, UOM, Category and Price. • Help Desk Tip: Category 00000000 (all zeros) is not acceptable. If you are Purchasing an item that is an asset DO NOT use comma’s in the description of the item. This has caused interfaced files to error. (This is covered in depth in the Asset Training classes) • Go to the Line Details - There are two ways to enter most of the information – clicking on the line details icon or using the tabs. Enter specific information pertaining to each line on the PO.

13. Status Tab The Statuses tab displays the status of the purchase order line. The status defaults to active. The other status types are Canceled and Closed. Once the PO is saved, approved and budget checked, a blue change order triangle and a red X to cancel the line will appear on the status tab.

14. Contract Tab The Contract tab. If the item is being purchased from a contract, a Contract ID must be entered in order for the PO to save. If the contract is for personal services, OPM requires that the contract have a line for each service. If the contract has lines you must enter a line number. Usually a Buyer will copy a personal services contract into the PO and the line number will populate automatically. Help Desk Tip: If you click the lookup and can’t find the contract, compare the Vendor ID on the PO to that on the Contract. The vendor may have two IDs, and the contract you are searching for may be associated with the other ID.

15. PO Obligation The Total Obligation amount should equal the total funds for the total length of the Purchase Order and term of the contract. If you are not sure of the total obligation use past history and estimate. The start and end date should also be completed for the total length of the purchase order and/or term of the contract. REMINDER: If you don’t enter an amount, the PO Obligation amount will save as the amount of the PO. The Start Date will be the first day of the fiscal year and the End Date will be the last day of the fiscal year. The PO Obligation will NEVER update again when saved unless you manually change the amount and save. **When doing a change order make sure to update the PO Obligation link before saving your purchase order**

16. Online PO (Amount Only) • This is an Amount Only PO for Services. This particular PO can be set up as both an Amount Only or a Quantity PO. They accomplish the same thing but will be treated differently by Purchasing and Accounts Payable. Follow your agency’s business processes to determine which type will work best for your Agency. • You must think of what will work best for not only the Buyer, but also for those involved in the receiving and vouchering functions of the PO. • Tip: You can tell that this PO has the Amount Only Checkbox checked in the Line Details right from the Main Page by looking at the lines. If the quantity is a quantity of 1, the field is grayed out and the unit price and amount fields are open then it is amount only. You would still need to look at the distribution lines to verify how it is distributed.

17. Distributions by Amount It is much easier to do split funding when distributing by amount because it is done by dollar amount or percentage. It is more difficult to do split funding when you have a quantity of 1 and you need to split that quantity of 1 into 5 different distribution line quantities. If the quantity of 1 is distributed evenly for 5 lines, for example .20 (5 X.20=1). But if the 5 distribution lines had quantities of .20, .20, .20, .2208, and .1791 (these quantities equal 1) and you had to do a change order to increase the PO, it would be a lot more difficult to figure out how to increase these quantities.

18. Online PO (Quantity) • This is the same scenario as the previous screenshot but the PO is set up as a quantity. Notice in this case the quantity and the unit price field is open for changes.

19. Quantity PO Distributed by Amount The distribution in this screenshot is by amount. Again, it is much easier to use distribute by amount when using split funding and different dollar amounts for each distribution line. If you had a Quantity PO distributed by Amount and you need to do a change order to increase the PO, you could just change the dollar amounts in the distribution lines based on the funds you were adding to the PO and the system would re-calculate the percentages for you. We will see this in later screenshots when doing change orders. If you have a Quantity PO which has split funding and the distribution lines are easily distributed by a quantity of 1, then it is easy to distribute by quantity. For example your PO is a quantity of 5 and you have 4 distribution lines-you distribute a quantity of 1 on 3 of the distribution lines and a quantity of 2 on the 4th distribution line. See the next screenshot for distribute by quantity where the quantities are not so easily distributed when distribute by quantity is chosen.

20. Distributions by Quantity Here you can see how the system handles a Quantity PO Distributed by Quantity. The quantity forces the system to split the quantity into decimals. Very confusing when it comes time to do a change order. Tip: If you need to create a PO that will have several distribution lines—best way would be to distribute by Amount. Note: You CANNOT have an Amount Only PO and distributed by Quantity. Whereas, you CAN do the following: Amount Only PO distributed by Amount Quantity PO distributed by Quantity Quantity PO distributed by Amount Important: If you use the Quantity PO, with distribute by Amount, the system will treat the PO as a Quantity PO insofar as receiving and vouchering is concerned. Example: You have a quantity of 1 on the Main Page and 5 distributions by amount. When you receive this PO there is only a quantity of 1 so the PO is fully matched once the first receiver is entered. The same applies to vouchering, you will only be able to voucher once. If the quantity were 12 you could receive and voucher up to the quantity on the PO

21. Entering a Purchase Order - Key Points • Make sure the Contract Type, PO Type, PO Authority match. • Receiving is required for all purchases. • You cannot delete a distribution line if the PO has been budget checked. • You cannot cancel a distribution line that has been vouchered. • Make sure you use the appropriate Profile ID when purchasing assets. • PO Obligation is not automatically updated. • When you are copying from a contract or another PO and you are not using all the distributions, you can zero out/or delete the unneeded distribution line or lines prior to saving. • When you are creating an amount only PO, the Distribute By field must be Amount. If you are creating a quantity PO you can distribute by quantity or amount.

22. Change Order- Amount Only PO There are different ways to do a change order based on how your PO is set up from the start and what exactly it is that you want changed. Depending on what you change also changes the status of the PO and whether it needs approval and from whom. The PO must be dispatched for the change order icon to appear. This applies to the Schedules and Line Details pages as well. The only fields on the Main page that can be changed in the line itself would be the Price or the amount. Since the quantity on an amount only PO is one it doesn’t matter which one you change. 99% of change orders are changing the line values. If you need to change the vendor address, info from the header details or the PO defaults they can all be done from the Main Page. Note: If you change a Buyer on the Purchase Order after the PO is dispatched, the system will give you a Message that asks if you want to change certain fields (pre-defined fields Dept ID, location, ship to) to those values that are associated to the Buyer you are changing to. You must answer NO to this question if the PO has been vouchered. The Buyer is tied to the Dept ID which is a chartfield value and the basis for the encumbrances and expenditures against the PO. If you do, this could cause an error when the PO goes through budget check again and when AP creates another voucher against this Purchase Order. We will first take a look at an amount only PO and see how changes should be made to this type of Purchase Order. Help Desk Tip: If the Buyer on a PO is no longer at your agency, you SHOULD change the Buyer name to the new Buyer that will be handling this Purchase Order. Please refer to the Job Aid on the CORE Website called “ Fields that Trigger a Change Order.”

23. Change Order - Amount Only PO

24. Change Order - Amount Only PO There are several ways you can begin your change order. You can select the blue change order icon at the top of the page if you are going to change more than one line of the PO, or you can click into the status’ tab on the Main Page, the schedule or the distribution line depending on what you need to change and select one of the lines and select the blue change order icon. CORE recommends clicking the blue triangle icon as part of standard procedure for any changes to a PO. In some cases the change order icon will open fields that may originally appear as though they can’t be changed. If the field you need to change is not grayed out and If you choose to not select the blue change order icon at all you will get a message letting you know that your action will trigger a change order as some fields can be changed without clicking on the change order icon. So lets change the amount on the lines and see what messages come up and the appropriate answers for those messages.

25. Change Order - Amount Only PO I increased line #1 adding $1000.00 making it $3794.00 and clicked refresh. The yellow refresh box on the bottom of the page updates the screen with the change. You should get in the habit of using this refresh key as a regular practice when using CORE. When I make changes here on the Main Page, the system automatically updates the amount on the schedule page. When I click refresh I get this message (go to next slide)

26. Change Order - Amount Only PO This message is referring to the distributions for this line. It is asking you if you want the system to allocate the additional funds to the distribution lines based on the percentages that are already set up on your distribution lines. It is recommended that you select YES to this question if the percentages are not changing and NO if you need to change your percentages on your distributions. You should always check your distribution lines whenever adding or reducing the amounts on the lines. You should make sure that the distribution amounts are what you want them to be. If you changed more than one line on the PO, this message will display for each line that has been changed. You then want to go to the distribution lines and make your changes by allocating the additional funds to the distribution lines.

27. Change Order - Amount Only PO Above are the distributions as they are before I added the funds from my change order to the lines on the Main Page. I increased line 1 on the Main Page to $1000.00 so I would need to allocate the additional funds ($1000.00) to the distribution lines as required based on the percentages on each distribution line. Below are the distributions after allocating the funds.

28. Change Order - Amount Only PO The Status of the PO changes to Pending Approval and Budget Status of Not Checked. Notice that the change order appeared and now shows Change Order #2 shown under the PO id. All changes made to a PO through a change order require both Amount Approval and Chartfield Approval. Once the approval is done, the system will budget check the PO and provided it is Valid Budget Checked the PO will then need to be dispatched. While we are on this screen I want to show you the “Go To” drop down box and what information can be obtained from this area: Next slide

29. Change Order - Amount Only PO When you select the drop down box from the Go To line you can see the Activity Log and the dispatched History of the PO. The first screenshot is the Activity Log. In this case you can see the Buyer BalfourM created this PO on 11/14/2016. COREBryantK modified this PO on 09/05/2017 at 3:24 pm. (This is the change order that we saw in the previous screenshots) In the Approved section you can see that the PO was approved by DavidJ on 06/15/2017 but the PO is Pending Approval. This approval was the 1st change order approval of the PO. Once the change order is approved, the By User name will change (to the last approver that approved the change order) along with the date the change order was approved. The system only records the most recent activity and overwrites the older information. The second screenshot is the PO Dispatched History. This screen will show you all Dispatch activity for this PO. As you can see it will show the Date and Time of Dispatch, the Method and the User that dispatched the PO. If the Method is email or fax the user id field will show BATCH meaning the system dispatched the PO. In the scenario where we did a change order in the previous screens, this particular PO will show a second entry once the change order is dispatched. This area does not overwrite the previous information it will just add an additional entry to the list showing it was dispatched again. (In this case you have Original Dispatch on 11/15/2016 change order 1 on 5/30/2017. Change order 2 dispatch will add on once the change order is approved and dispatched.)

30. Change Order - Amount Only PO You can add Attachments in both the Header Comments and the Line Comments on the PO. If you want the attachment to go to the Vendor with your Dispatched PO (provided the Dispatch Method is Email), you need to check off the Email and Send to Vendor check boxes. If the Dispatch method is Fax or Print you will need to Print and send it to the vendor manually. Reminder: One attachment per comment. If you have 5 attachments you will need 5 comments (using the + sign to add additional comment boxes.)

31. Change Order - Quantity PO Distributed by Amount We now have a quantity PO and we will see how changes should be made to this type of Purchase Order. Look at PO #11460 for OTTM1. As I mentioned before the only fields on the Main page that can be changed in the line itself would be the quantity or Price (unit price). You CANNOT change the price on the line once the line has been received or vouchered. You can, however increase or decrease the quantity as long as it is not received or vouchered. A lot of users get confused when trying to change a quantity PO because there is so much emphasis on reducing PO’s to what was expended and in most cases this is referred to by the dollar amounts. Yes you can reduce the dollar amount but when you have a quantity PO you must do so by reducing the quantity which in turn will reduce the dollar amount. Just to reiterate this point If you need to change the vendor address, info from the header details or PO defaults they can all be done from the Main Page.

32. Change Order - Quantity PO Distributed by Amount Looking at this screen, I have increased the quantity on line 1 from a quantity of 12 to a quantity of 13. I also want to reduce the quantity on line 2 from 9000 to 8000 but will wait until I complete the changes to line 1 before making the changes to line 2. Click refresh. This will trigger the same questions that we saw when doing a change order to an amount only PO about allocating the funds on the distribution lines. Remember to answer NO and change the distributions yourself. The changes made on the Main Page will automatically update the schedule page. Proceed to the distributions.

33. Change Order - Quantity PO Distributed by Amount These are the distributions for Line 1 of the PO. As you can see I now have to increase them to a total of $5443.75 The percentages are very important at this point because we need to increase the amount on each of the distribution lines based on the increased amount of $418.75 which is the value of 1 quantity. Distribution line 1 is .04975% of $5443.75 which is $27.08. Distribution 3-6 have the same dollar amount because they share the same percentage. 19.9005% of $5443.75 is $1083.33. Line 2 picks up the slack .02 because the percentages do not mathematically calculate evenly to all 6 lines. Yes this is very confusing it is even more confusing if you have it distributed by quantity, split funded and try and do a change order. Remember, as I mentioned before: If you have split funding but the distribution lines are easily distributed by a quantity of 1 then it is easy to distribute by quantity. For example your PO is a quantity of 5 and you have 4 distribution lines-you distribute a quantity of 1 on 3 of the distribution lines and a quantity of 2 on the 4th distribution line. Go to the next screenshot to see the final entries.

34. Change Order - Quantity PO Distributed by Amount As you can see the percentages stayed the same it was just the dollar amounts that have changed. Click OK We now need to look at line 2 to reduce the quantity of the line.

35. Change Order Quantity PO These are the distributions for line 2. To do the change order for line 2 we will START at the distribution level. Explanation: If this PO had only one distribution we would follow the normal pattern and reduce from the Main Page. In this particular case we have 5 distribution lines. If we started at the Main Page and reduced the line and schedule and then went to the distribution line to make reductions manually, the system would issue you a message that would read: Total distributed amount exceeds the scheduled amount (see next screenshot of message). When you change the distribution lines the system processes the change between each entry. For example: you reduce distribution line 1 to $147.50 and then you will see PROCESSING in the right corner of your screen, immediately you would get this message because if you added up all the distribution lines it is greater than the schedule amount) you can’t even get to change line 2 because the system will not process the first reduction for line 1. So, due to this you are forced to start from the distributions (making them lower than the schedule first). Remember the schedule amount is automatically updated when you make your change to the Main Page. So, in order to make a reduction when you have several distribution lines start at the distribution level. We need to reduce these distributions to total $1340.00 which is the amount we want line 2 reduced to. Again it would be based on the percentages on each of the distribution lines Look at the percentages and calculate the reduction accordingly. Reduce line 1 by $18.61,Line 2 by $37.22, Line 3 by $55.83, Line 4 by $27.92 and Line 5 by $27.92.

36. Change Order Quantity PO This is the message you would receive had you made your change to the Main Page first and then tried to reduce the distribution lines manually.

37. Change Order Quantity PO I have made the necessary changes to the distribution lines and clicked refresh. Be sure you entered the correct figures and click OK. You will be returned to the schedule. Select Return to Main Page and change the quantity on the line and click refresh You will receive the message about allocating the funds and again answer NO. Important:You should always check your distribution lines whenever adding or reducing the amounts or quantities on the lines. You should make sure that the distributions are what you want them to be. Click save. Provided you have calculated the distributions correctly and the total amount matches the amount on the Main Page. You will be successful in creating your change order

38. Change Order Quantity PO The Status of the PO changes to Pending Approval and Budget Status of Not Checked. Notice that there is now a Change Order #1 shown under the PO ID. The PO will require Amount and Chartfield Approval. Once the approval is done, the system will budget check the PO and provided it is Valid Budget Checked the PO will then need to be dispatched.

39. Practice Exercises #1 • Create an Amount Only PO • Create a Quantity PO • Change the Vendor Address • Increase the Amount • Decrease the Quantity • Change Account #, Change Buyer

40. Canceling in the Purchasing Module In Purchasing you can cancel the line, the schedule or the distribution separately or you can cancel all of them in one action by canceling the entire PO. This is dependant on what status the PO is in at the time and what your needs are for this action. In most cases the PO has dispatched to the vendor and you now need to cancel. For this action the Red X is the cancel icon and you can find it in several different places on the PO. Lets take a look at those and what they will do for you.

41. Canceling in Purchasing Lets look at OTTM1 PO #11459. What information can you tell me about this PO? Some answers should be: (It is a quantity PO because the quantity and the price fields are open fields, it is sourced from a requisition because it has requisition link. It is available to cancel or change because of the icons on the top right. It has been approved, budget checked valid and dispatched, the items have not been received, there have been no change orders, the vendor Suburban Stationers Dispatch method is EDX. Payment will be P card (Use Procurement card is checked), the order was placed using Punchout (only Punchout orders dispatch by EDX). Lets take a look at canceling the distribution line first,

42. Canceling a PO or PO Line I have selected the statuses tab on the lines from the Main Page of the PO to display the status of the lines of this PO. You can see the red X for each of the lines. If you wanted to cancel only one line from this PO select the corresponding red X at the line level. If your PO has not been received nor vouchered and you wanted it to be cancelled all together you would use the red X in the top right hand corner of your PO. If you have reduced the lines on the PO to zero because you want to cancel the PO, you DO NOT need to cancel each of the lines before canceling the entire PO.

43. Canceling a Purchase Order To cancel the entire PO you will click the red X on the top right and you will receive this message just reconfirming that you are canceling this PO. Answer as needed. I answered YES. I then receive this box about re-sourcing the requisition. The default is NO and 99.9 percent of the time you wouldn’t Re-Source but if you needed to you would answer yes and this would source to another PO. Select Continue.

44. Canceling a Purchase Order This is the final message that again reconfirms that you are canceling the PO and the status that the system is assigning is Pending Cancel and the PO will need to be budget checked and then dispatched again to finalize the cancellation process. Once dispatched the Pending Cancel Status will change to cancelled. Help Desk Tip: PO’s that have been Dispatched to the vendor and then canceled go to the Pending Cancel status. The system is configured with the idea that you need to notify the vendor that the PO has been canceled. Dispatching the Pending Cancel PO would be used to notify the vendor.

45. Canceling a Purchase Order As you can see when you cancel the entire PO the PO status changes to Pending Cancel and this process changes the status to cancelled on the lines, the schedule and the distributions. REMEMBER: The Pending Cancel status is used when you have canceled a dispatched PO. A PO must be re-dispatched from this status in order for the cancellation to be complete. The system will not allow you to Cancel PO’s or lines that are in Budget Error. You must get them out of error. Cancelled PO’s must be closed just like any other PO through the Buyers Workbench. Do not leave them until the end of the fiscal year to close them. They should be included in your Monthly Reconciliation of Closing PO’s.

46. Canceling a PO Line When selecting to cancel a line of the PO from the Main Page this message will be displayed just to confirm that this is what you want done. Answer yes or no as needed, I am answering yes and the line is now cancelled. If you attempt to cancel a line that has already been received you will receive message #2 advising you that you cannot cancel a received line and offering information about creating a change order.

47. Canceling a PO Line The status of Line #1 is now cancelled. The PO will now have to be approved and budget checked. Note: You cannot cancel a line that has been vouchered or received.

48. Canceling a Distribution Line The Buyer wants to get rid of distribution line 2. We will use the Statuses Tab. Note: The Chartfield Value Fields are open which immediately tells you that the lines of the PO have not been vouchered yet and are available for you to make changes if needed. Once the line gets vouchered the fields are grayed out and cannot be changed. Important: Do not use the Minus Sign to delete lines. This action is used mainly to delete lines when creating the PO prior to saving the PO. This functionality applies to both lines on the Main Page of the PO and distribution lines. Canceling is the safest way and the system won’t let you cancel if certain conditions have not been met. We have seen many problems with budgets etc when buyers have used the minus sign to delete lines.

49. Canceling a Distribution Line You can see the red X for each line. You cannot cancel a line that is not valid budget checked. You will get a message telling you this if you attempt to do so. I selected the red x for line 2. See next screen shot for the error message because line 2 is not valid budget checked.

50. Canceling a Distribution Line The message is pretty self explanatory. I only want to explain one issue that seems to create confusion for users. If you are trying to cancel a line, but, before you cancel it you want to reduce it to zero. That is all fine and well except that if you try and perform this during the same transaction you will get this message. Explanation: Once you reduce the line to zero the system processes this and knows that it now needs to re-budget check this PO. So, although you can only see that it is budget checked valid the system knows you made a change to an amount that will need to be re-budget checked and then you try to cancel it will give you this message once again. So, the clean way to perform this task would be to reduce the line to 0 (if you must) get the change order approved and budget checked and then come back and cancel the line. There are two reason for wanting to bring the line down- One would be to return funds to your contract and the other would be that your agency uses the PO balance report. We will talk about these two issues later on in this training class.