In certain circumstances, cancellations of Purchase Orders may be necessary.

Cancellation of Purchase Orders represents an exception procedure and should not be an arbitrary act by either party. Commonly accepted considerations for the cancellation of Purchase Orders are:

• Year end cancellation of state funded obligations
• Extended lapse time without delivery
• Change in usage requirements
• Mutual agreement

Thirty days prior to the end of the fiscal year the Disbursements will review all open state funded obligations.  This review is necessary to preclude lapsing of these funds at the end of the fiscal year.

Questions regarding cancellations should be addressed to Accounts Payable, extensions 5146.