Oracle EBS Purchasing Requisition Approval 101

1. 1. Oracle Purchasing Requisition Approval Workflow Desk
2. 2. •Requisition Approval Process Methods • It is an example of a workflow process • It gets initiated when you create a new requisition to purchase an item. Two methods to route document approval: 1. Approval Hierarchies (uses job/positions) 2. Employee/Supervisor Relationships An accent, click to edit the text inside. An accent, click to edit the text inside.
3. 3. •Approval Hierarchies Using job/position relationships • These have a job/position relationships • Purchasing utilizes jobs and positions as a roadmap to determine how and where documents will be routed once the approval process has been initiated • Create all positions that are going to be used in the system. • Build the position hierarchy. • Each Position has an approval limit • When a purchase order exceeds the limits of the POSITION, the purchase order is forwarded onto the next POSITION in the Hierarchy An accent, click to edit the text inside. An accent, click to edit the text inside.
4. 4. •Approval Process Flow Process • the process sends a notification to the next manager in the approval hierarchy to approve the requisition. • If the spending limit of the approving manager is less than the requisition amount, the process forwards the requisition to the next higher manager in the approval hierarchy • The process repeats until it finds a manager with the appropriate spending limit to approve the requisition. • Each intermediate manager must approve the requisition to move it to the next higher manager. • Once a manager with the appropriate spending limit approves the requisition, the process ends with a result of approved. An accent, click to edit the text inside. An accent, click to edit the text inside.
5. 5. •Reject Requisition Rejection Process The process can end with a result of rejected if: • Any manager rejects the requisition. • The requisition amount is greater than the highest spending limit. • The requisition's requestor does not have a manager. An accent, click to edit the text inside. An accent, click to edit the text inside.
6. 6. •Approval Hierarchies Tables Job/position Tables • The hierarchy for JOB/POSITIONS is defined on the Position Hierarchy form. • Run Fill Employee Hierarchy concurrent process after each change The Requisition Approval process is based on two tables: • One that stores approval hierarchy WF_REQ_EMP_HIERARCHY • Other stores spending authority information. WF_REQ_EMP_AUTHORITY An accent, click to edit the text inside. An accent, click to edit the text inside.
7. 7. •Approval Hierarchies Set ups Job/position set ups Navigation • You must set up Positions if you plan to use either security or approval hierarchies. • PO Navigator -> Setup -> Personnel -> Position Hierarchy An accent, click to edit the text inside. An accent, click to edit the text inside.
8. 8. •Approval Example Workflow . • Premise User Reports to Approval Limit Junior Buyer Senior Buyer $5000 Senior Buyer Chief Buyer 100000 Chief Buyer VP Unlimited
9. 9. •User approval Example Junior Buyer Raises a PO of 150,000 PO submitted for approval via workflow Senior Buyer Approves or rejects If approved PO forwarded to next level Chief Buyer Approves or Rejects
10. 10. •Forward Method Direct Junior Buyer Raises a PO of 120,000 PO amount exceeds Senior Buyer’s limit Chief Buyer Approves or Rejects
11. 11. •Employee/Supervisor Hierarchy HR Employee/Supervisor relationship • This type of hierarchy does not use the Approval Hierarchy form, but is defined by the employee /supervisor relationship. • The supervisor of an employee is defined on the Assignment zone of the Employee form • If the purchase order raised by the employee exceeds the approval limits, the purchase order is forwarded onto the employees' supervisor, as defined on the Employee form An accent, click to edit the text inside. An accent, click to edit the text inside.
12. 12. •Employee/Supervisor Hierarchy Pre-Requisites • Define jobs. The job will then serve as the tie to the Approval group • Based on the approval limits from the Approval Group, the Document will either be Approved or Forwarded to the Employees Supervisor. • If no Supervisor is able to be located and the Job assigned to the employee does not have Approval Authority, then • The Approving employee must enter a forward to person, or • The Document will be returned to an Incomplete status • A notification will be sent to the Approving employee, • No Approver Found - Please Select a Forward To Employee. An accent, click to edit the text inside. An accent, click to edit the text inside.
13. 13. •APPROVAL ROUTING METHOD Set ups with Document Types 2. Document Types • PO -> Setup -> Purchasing Options -> Document Types • Two attributes on this form: • Attribute Forward Method: Direct: The document will pass to the next position or supervisor in the hierarchy who has high enough limits to approve the document. • Forward Method: Hierarchy: The document will pass to the next person in the hierarchy regardless to whether that position or supervisor has high enough limits to approve. • Attribute Default Hierarchy: The Default Hierarchy option will only appear on the Document Type form if the option "Use Approval Hierarchies" is checked on the Human Resources zone on the An accent, click to edit the text inside. An accent, click to edit the text inside.
14. 14. •Employee Supervisor Another case • Junior Buyer Reports to Senior Buyer But • Managed by Senior Manager • Senior Manager is managed by Group Manager An accent, click to edit the text inside. An accent, click to edit the text inside.
15. 15. •Approval Example Workflow . • Premise User Is managed by Approval Limit Junior Buyer Senior Manager $5000 Senior Manager Group Manager 100000 Group Manager VP Unlimit ed
16. 16. •Forward Method Direct Junior Buyer Raises a PO of 130,000 Buyer reports to Senior Buyer but is managed by Group Buyer’ Group Buyer Approves or Rejects
17. 17. •Approval Management Engine Steps to configure user for AME Prior to R12, there was a responsibility Approval Manager. You could assign it to user and user could access AME using that responsibility .Now in R12 , there is Role Based access for AME responsibility: • 1.Login as SYSADMIN • 2. GO to Responsibility User Management >> User Management • 3. Search for user account for which AME is to be used say amesample • 4. When search shows a record then click update • 5. Go to Assign Roles section • 6. Search for value approval • 7. Assign 5 roles to the user • 8. Enter justification : “for PO purpose" • 9.Apply An accent, click to edit the text inside. An accent, click to edit the text inside.
18. 18. •Approval Management Engine Create Grants Functional Administrator responsibility • Create grant • Name: amesample grant , description : PO purpose • Grantee type : specific user , grantee: amesample • Data Security : AME transaction type • Set : AME calling application An accent, click to edit the text inside. An accent, click to edit the text inside.
19. 19. •Approval Management Engine Create Profile option AME installed Functional Administrator responsibility • Sysadmin responsibility • Menu : profile: • Application level • Search AME installed Human resources module • Look for ‘YES’ at Application level and ‘No’ for Site level An accent, click to edit the text inside. An accent, click to edit the text inside.
20. 20. •Approval Management Engine Test AME sample user Functional Administrator responsibility • Login as amesample user • Create transaction type • Oracle self service HR • Ensure you select transaction type before accessing the AME approvals set up An accent, click to edit the text inside. An accent, click to edit the text inside.