About Novations

Novations allow an agency to change the responsibility of a PO from one vendor to another through a PO upload. IPP automates the novations process for agencies and reduces the error rate on POs associated with manual, multistep processing.

To novate a PO from one vendor to another, ensure the following:

• The PO Status field in the PO upload file contains the value of N (novation).

• One or more of the values in the PO upload file, which identify the vendor, must differ from the original PO.

• • VendorID

  • SiteID

  • SetID

• The PO number in the Disburser module must already exist in IPP.

• All invoices associated with the PO must be inactive or settled. The invoices must have a status of:

• • Draft

  • Exception

  • Paid

  • Paid Returned

  • Rejected

  • Void

  • Denied

If a novated PO upload contains active invoices, IPP changes the PO to the new vendor, but assigns the PO with the status of “Hold”. When IPP processes the invoices through payment, rejection, or voiding, the agency can release the PO from the Hold. Once released, the PO is available for invoicing by the new vendor. To release a PO on Hold, you must have the Purchase Order/Blanket PO – Hold/Release Hold permission assigned to one of your roles.

The original vendor loses access to the PO once the PO novates. Original vendors can only view and access invoices and payments up to the point of novation. The new vendor can view and access related documents that apply post novation.

Note: Active credit memos do not affect the agency’s ability to novate a PO.

To ensure you receive notifications related to successful novations, contact your Disburser Administrator to subscribe you to the PO Novation Notification.

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