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Purchase Cancellation

Cancel a Purchase Order or Transaction Before Goods Are Received

The Purchase Cancellation feature in PrismERP allows users to cancel purchase orders or related procurement transactions before any goods are physically received. This helps prevent unnecessary stock updates, avoid vendor billing issues, and maintain clean procurement records.

📌 What is Purchase Cancellation in PrismERP? Purchase Cancellation is the process of invalidating a Purchase Order or purchase transaction before the receipt of goods or services. It ensures that no inventory is updated and no financial obligations are created from canceled orders.

✅ Key Features of Purchase Cancellation

Cancel Before Goods Receipt Allows cancellation only if no Goods Receipt Note (GRN) or partial receipt has been processed.

Authorization Controls Cancellation rights can be restricted based on user roles and approval workflows.

Audit Trail Maintains a detailed log of canceled orders including user, time, and reason for cancellation.

Linked Document Updates Automatically updates related documents like Purchase Indents, Requests, and Quotations upon cancellation.

Notification System Sends alerts to relevant departments or vendors when a cancellation occurs.

💼 Why Use This Feature? Timely cancellation prevents order fulfillment errors, reduces administrative overhead, and avoids unnecessary vendor charges.

Business Benefits​

  • Prevents stock and financial discrepancies
  • Maintains accurate procurement records
  • Improves vendor communication and coordination
  • Enables quick reversal of mistaken or changed purchase decisions
  • Ensures compliance with internal policies

How to Perform Purchase Cancellation​

Navigate to Cancellation

Steps:​

  1. Search and select the Purchase Order to cancel
  2. Verify that no goods have been received against the order
  3. Enter a reason for cancellation
  4. Submit the cancellation request
  5. Await approval if configured in workflow
  6. Confirm cancellation to update system records

Optional Integrations

  • Approval Workflow: Enforce multi-level authorization for cancellations
  • Vendor Communication: Automated notifications sent to suppliers
  • Financial Module: Reverse any pending accounting entries linked to the order

🧾 Control Purchase Errors. Avoid Unnecessary Stock Updates. Keep Procurement Clean. The Purchase Cancellation module in PrismERP safeguards your purchasing process by enabling quick and authorized cancellation of purchase orders—before any inventory or financial impacts occur. Cancel smartly. Control accurately. Manage efficiently—with PrismERP.