What is closing PO or SO mean?
There are various reasons why a Purchase Order or a Sales Order may be closed. One of the most common reasons would be the PO/SO quantity of items cannot be fulfilled in full.
What Happens When a PO/SO is Closed:
- When you close a Purchase Order, the remaining incoming quantities will be removed. This is because once you create a Purchase Order, your inventory has noted the indicated quantity from the PO as incoming quantity. However, by closing the PO, the incoming quantities will be removed.
- When you close a Sales Order, the remaining allocated quantities will be removed. This is because once you create a Sales Order, your inventory will allocate the indicated quantity for the SO.
- Once a PO or SO is closed, users can no longer also create a Delivery, Invoice, Sales Return, Bill, Purchase Return. However, users can still pay or collect anytime.