Troubleshooting Details
Purchasing Setup of Approval Hierarchies
There are three methods to route documents for
approval:.
· Approval Hierarchies (uses position hierarchies)
· Employee/Supervisor (uses employee/supervisor relationship)
· AME - Approval Management Engine (for requisitions only)
The first two methods Approval and Employee/Supervisor pertain to all Purchasing document types, including requisitions. This document will not include information on the 3rd method, Approval Management Engine (AME) for requisition approval.
Additionally this note will only review approvals for single business groups. Refer to Note 726618.1 'Unable to Allow Approver to be seen Across Business Groups' for information about approvals across business groups.
This document will include the following sections:
- Initial Setup: Basic setup you need to complete in order to use the Approvals functionality in Purchasing
- Employee/Supervisor Relationships: A narrative explaining the employee/supervisor relationship and examples.
- Position Hierarchy: A narrative explaining the position hierarchy and examples.
- Approval Setup: Basic requirements for setting up both the Approval and Employee/Supervisor Relationship. If you want a quick reference with screenshots of the setup go directly to this section.
Initial Setup
- Enable the Approval Method
The Human Resources zone on the Financial Options form has
an option called Use Approval Hierarchies. This option determines which type of
hierarchy is used for the approval process. When checked, the Approval
Hierarchy is used and when unchecked the Employee/Supervisor relationship is
used.
Go to the Financial Options form
Navigation: PO Responsibility -> Setup -> Organizations -> Financial Options
Go to the Financial Options form
Navigation: PO Responsibility -> Setup -> Organizations -> Financial Options
a. Select or deselect ‘Use Approval Hierarchies’.
b. Save your work.
b. Save your work.
- Define Jobs / Positions
Use the Job window to create each of the job titles in your
organization (for example: Buyer, Supply Base Engineer). If you are not using
positions, you assign one or more employees to each job. If you are using
positions, you assign one or more positions to each job, and later assign one
or more employees to each position.
Navigation if using shared HR: Purchasing Responsibility ->
Setup -> Personnel -> Jobs
If using a full install of HR: Human Resources Responsibility -> Work Structures -> Jobs -> Description
If using a full install of HR: Human Resources Responsibility -> Work Structures -> Jobs -> Description
Note: You assign authorization rules to jobs or positions based on
your approval method. If you are using employee supervisor method the
authorization rules are assigned to the jobs.
Use the Position window to create each of the positions in your organization. This step is required if you plan to use either security or position approval hierarchies.
Use the Position window to create each of the positions in your organization. This step is required if you plan to use either security or position approval hierarchies.
Navigation if using shared HR: Purchasing Responsibility ->
Setup -> Personnel -> Positions
If using a full install of HR: Human Resources Responsibility -> Work Structures -> Positions -> Description
If using a full install of HR: Human Resources Responsibility -> Work Structures -> Positions -> Description
Note: Refer to Representing Jobs and
Positions, Oracle HRMS Enterprise and Workforce Management Guide for more
information about setting up jobs or positions.
- Build Position Hierarchies
Use the Position Hierarchy window to build and administer your
position hierarchies. There are two distinct uses for position hierarchies in
Purchasing: Document approval routing and
Document security control. You can use a single position hierarchy for both purposes.
Document security control. You can use a single position hierarchy for both purposes.
Navigation if using shared HR: Purchasing Responsibility ->
Setup -> Personnel -> Position Hierarchy.
If using a full install of HR: Human Resources Responsibility -> Work Structures -> Position Hierarchy
If using a full install of HR: Human Resources Responsibility -> Work Structures -> Position Hierarchy
Note: Refer to Representing Jobs and
Positions, Oracle HRMS Enterprise and Workforce Management Guide.
- Security Hierarchies
Security Hierarchy is used to determine who can access the
purchasing document. If you want to specify a Security Level of Hierarchy for
any of your document types, you must first define all positions.
Important: Even if you are using jobs (i.e. Employee/Supervisor
relationship) to route documents, you must define positions before you can
enable this Security Level)
The Security Hierarchy is selected from a list of values in the
Control zone of the Purchasing Options form (Navigation: Purchasing
Responsibility -> Setup -> Organizations -> Purchasing Options). Here,
select a Security Hierarchy, which is a position hierarchy from the Position
Hierarchy window. When the Security Level is set to Hierarchy for a document in
the Document Controls window, this position hierarchy governs access security
for that document.
The Security Hierarchy field will only be enabled when the
Hierarchy option is selected for the Security Level on the Document Types form.
Employee/Supervisor Relationships
This type of hierarchy is defined by the employee/supervisor
relationship. The supervisor of an employee is defined on the Assignment region
of the Employee form. If the purchase order entered by the employee exceeds the
approval limits, the purchase order is forwarded onto the employees'
supervisor, as defined on the Employee form.
To implement this form of approval routing, you need only to define
jobs. The job will then serve as the tie to the approval group, and 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 and a notification will be
sent to the approving employee, stating – ‘No Approver Found’.
Employee/Supervisor Relationship Setup Example
For this example Senior Manager is the manager of Junior Buyer and
Group Manager is the manager of Senior Manager.
Employee
|
Is
Managed by
|
Approval
Limit
|
Junior Buyer
|
Senior Manager
|
50.00
|
Senior Buyer
|
Group Manager
|
100.00
|
Group Manager
|
Unlimited
|
Employee/Supervisor Example One:
The Forward Method is set to Hierarchy on the Document Type form.
a. Junior Buyer raises a purchase order that has a total
value of 150.00.
b. The purchase order is then submitted for approval.
c. As Junior Buyer does not have a high enough approval limits, the purchase order is automatically forwarded to Senior Manager (because Senior Manager is Junior Buyer's supervisor as defined on the Employee form)
d. Senior Manager responds to the approval notification for this purchase order.
e. If Senior Manager selects "Approve", the purchase order is automatically forwarded on to the Group.Manager as Senior Manager does not have a high enough approval limit.
f. The purchase order appears in the notification screen for Group Manager where it can be approved or rejected.
b. The purchase order is then submitted for approval.
c. As Junior Buyer does not have a high enough approval limits, the purchase order is automatically forwarded to Senior Manager (because Senior Manager is Junior Buyer's supervisor as defined on the Employee form)
d. Senior Manager responds to the approval notification for this purchase order.
e. If Senior Manager selects "Approve", the purchase order is automatically forwarded on to the Group.Manager as Senior Manager does not have a high enough approval limit.
f. The purchase order appears in the notification screen for Group Manager where it can be approved or rejected.
Employee/Supervisor Example Two:
The Forward Method is changed to Direct.
a. Junior Buyer raises another purchase order with a total
value of 150.00.
b. The purchase order is then submitted for approval.
c. As neither Junior Buyer or Senior Manager have a high enough approval limit, the purchase order is sent directly to Group Manager because Group Manager is Senior Manager's supervisor as defined on the Employee form and Senior Manager is Junior Buyer's supervisor.
b. The purchase order is then submitted for approval.
c. As neither Junior Buyer or Senior Manager have a high enough approval limit, the purchase order is sent directly to Group Manager because Group Manager is Senior Manager's supervisor as defined on the Employee form and Senior Manager is Junior Buyer's supervisor.
Position Hierarchies
Position Hierarchies are hierarchies that have a position relationship. Purchasing utilizes positions as a roadmap to determine how and where documents will be routed once the approval process has been initiated. It is first necessary to have created all positions that are going to be used in the system. Once all positions have been created, it is necessary to build the position hierarchy.Each position has approval limits, so when a purchase order exceeds the limits of the position, the purchase order is forwarded onto the next position in the Hierarchy.
The hierarchy for positions is defined on the Position Hierarchy form. Purchasing does not check for the primary checkbox on Position Hierarchy form. When this setup is complete or is changed, the Fill Employee Hierarchy concurrent program must be run for the new hierarchy to come into effect. You must set up Positions if you plan to use either security or approval hierarchies.
Position Hierarchy Setup Example
For the following two examples
we will use the following Approval Hierarchy. The name of the hierarchy is
"Buyer Approval Hierarchy".
Employee
Position
|
Manager
Position
|
Approval
Limit
|
Junior Buyer
|
Senior Buyer
|
50.00
|
Senior Buyer
|
Chief Buyer
|
100.00
|
Chief Buyer
|
Unlimited
|
Approval Example One
On the Document Type form Forward Method is set to Hierarchy
and Default Hierarchy is set to Buyer Approval Hierarchy.
a. Junior Buyer raises a purchase order that has a total
value of 150.00.
b. The purchase order is then submitted for approval.
c. As Junior Buyer does not have a high enough approval limit, the purchase order is automatically forwarded to Senior Buyer because it is the next position in the hierarchy.
d. Senior Buyer responds to the approval notification for the purchase order.
e. If Senior Buyer selects "Approve", the purchase order is automatically forwarded to Chief Buyer because Senior Buyer does not have a high enough approval limit.
f. The purchase order notification appears in the notification screen for Chief Buyer where it can be approved or rejected.
b. The purchase order is then submitted for approval.
c. As Junior Buyer does not have a high enough approval limit, the purchase order is automatically forwarded to Senior Buyer because it is the next position in the hierarchy.
d. Senior Buyer responds to the approval notification for the purchase order.
e. If Senior Buyer selects "Approve", the purchase order is automatically forwarded to Chief Buyer because Senior Buyer does not have a high enough approval limit.
f. The purchase order notification appears in the notification screen for Chief Buyer where it can be approved or rejected.
Approval Example Two
On the Document Type form The Forward Method is changed to
Direct and the Default Hierarchy remains unchanged.
a. Junior Buyer raises another purchase order with a total
value of 150.00.
b. The purchase order is then submitted for approval.
c. As neither Junior Buyer nor Senior Buyer has a high enough approval limit, the purchase order is sent directly to Chief Buyer for approval.
b. The purchase order is then submitted for approval.
c. As neither Junior Buyer nor Senior Buyer has a high enough approval limit, the purchase order is sent directly to Chief Buyer for approval.
Approval Setup
Document Types
Forwarding Method:
The forwarding method is set under document types. This field has two options that apply regardless as to whether you use an Approval Hierarchy or an Employee/Supervisor relationship.
Direct: the document will pass to the next position or supervisor in the hierarchy who has enough authority to approve the document.
Hierarchy: the document will pass to the next person in the hierarchy regardless as to whether that position or supervisor has enough approval authority to approve the document.
Navigation: Purchasing Responsibility -> Setup -> Purchasing -> Document Types
The forwarding method is set under document types. This field has two options that apply regardless as to whether you use an Approval Hierarchy or an Employee/Supervisor relationship.
Direct: the document will pass to the next position or supervisor in the hierarchy who has enough authority to approve the document.
Hierarchy: the document will pass to the next person in the hierarchy regardless as to whether that position or supervisor has enough approval authority to approve the document.
Navigation: Purchasing Responsibility -> Setup -> Purchasing -> Document Types
a. From the list of values choose the purchasing document
you want to assign the forwarding method to.
b. In the field ‘Forward Method’ choose Hierarchy or Direct and save your work.
b. In the field ‘Forward Method’ choose Hierarchy or Direct and save your work.
Default Hierarchy
In the screenshot above we
additionally see the ‘Default Hierarchy’ set to Materials. When choosing the
action of 'Approve' for a document, if a Forward-To person is not defined and
the person taking action does not have sufficient approval authority, the
default hierarchy is first searched by the employee attempting the approval.
The Default Hierarchy option will only appear on the Document Type form if the option Use Approval Hierarchies is selected as shown in the section Enable the Hierarchy Method above. The Default Hierarchy field has a list of values. This list is derived from the hierarchies created using the Position Hierarchy form which will be discussed under the Position Hierarchies section of this document.
The Default Hierarchy is the one that will be used by the approval process unless the person who submits the document for approval changes it in the Approval Modal form. But, the hierarchy can only be changed on the Approval Modal form if the attribute ‘Can Change Approval Hierarchy’ (additionally shown in the screenshot above) is checked on the Document Type form.
Note: it is imperative that the low-end users (those with little approval authority) be present in this default hierarchy so the next Forward-To approver can be found.
The Default Hierarchy option will only appear on the Document Type form if the option Use Approval Hierarchies is selected as shown in the section Enable the Hierarchy Method above. The Default Hierarchy field has a list of values. This list is derived from the hierarchies created using the Position Hierarchy form which will be discussed under the Position Hierarchies section of this document.
The Default Hierarchy is the one that will be used by the approval process unless the person who submits the document for approval changes it in the Approval Modal form. But, the hierarchy can only be changed on the Approval Modal form if the attribute ‘Can Change Approval Hierarchy’ (additionally shown in the screenshot above) is checked on the Document Type form.
Note: it is imperative that the low-end users (those with little approval authority) be present in this default hierarchy so the next Forward-To approver can be found.
User Setup
Regardless if Approval (Position) or Employee/Supervisor
hierarchies are used, there are some basic setups required for the approvers:
Step 1: Create the employee record:
Go to the People form
Navigation if HR is fully installed: HR Responsibility > People > Enter and Maintain.
Navigation if HR is shared: Purchasing Responsibility > Setup > Personnel > Employees
Step 1: Create the employee record:
Go to the People form
Navigation if HR is fully installed: HR Responsibility > People > Enter and Maintain.
Navigation if HR is shared: Purchasing Responsibility > Setup > Personnel > Employees
a. Either query the employee by name or if the employee
record has not been entered, enter the required detail.
b. If e-mail notifications are to be sent then enter the users email address in the Email field in the Office Details tab.
b. If e-mail notifications are to be sent then enter the users email address in the Email field in the Office Details tab.
c.
Choose the Assignment button
d. Assign a Job if using Employee/Supervisor or Job and Position if using Approval Hierarchies.
d. Assign a Job if using Employee/Supervisor or Job and Position if using Approval Hierarchies.
Note: For information on creating
jobs or positions see the Oracle Purchasing User’s Guide, section ‘Define Human
Resource key Flexfields (Required)’.
e. If Employee/Supervisor is used
the Supervisor must be assigned (unless this approver is the last approver in
the hierarchy chain). Save your work.
Step 2:
Create the User record:
Go to the Users form
Navigation: System Administrator -> Security -> User -> Define
Go to the Users form
Navigation: System Administrator -> Security -> User -> Define
a. If the user has already been
entered then query the user in the User Name field. If the user has not been
entered fill in the required information and link the human resources record in
the Person field.
b. If e-mail notifications are to be sent ensure that the e-mail field is populated. This information will default from the e-mail address entered in the human resources record above.
c. Add the responsibilities needed for the user. Save your work.
b. If e-mail notifications are to be sent ensure that the e-mail field is populated. This information will default from the e-mail address entered in the human resources record above.
c. Add the responsibilities needed for the user. Save your work.
Step 3: Setup the
user as a Buyer:
Go to the Buyers form:
Navigation: Purchasing Responsibility -> Setup -> Personnel -> Buyers
Go to the Buyers form:
Navigation: Purchasing Responsibility -> Setup -> Personnel -> Buyers
a. Enter the Buyer name and
Effective From date. Category and Ship-To are not required.
b. Save your work.
b. Save your work.
Note: If the user is an off-line approver it is not required to enter the user as a Buyer here.
Step 4: Run the
Fill Employee Hierarchy process if using Approval Hierarchies:
Go to the Submit Requests form:
Navigation: Purchasing Responsibility -> Reports -> Run
Go to the Submit Requests form:
Navigation: Purchasing Responsibility -> Reports -> Run
a. Choose the Single Request ‘Fill
Employee Hierarchy’.
b. Submit the request and make sure it completes successfully from View -> Requests.
b. Submit the request and make sure it completes successfully from View -> Requests.
Note: It is required to run this report if creating or making changes to the Position hierarchy. It is not required to run this report if using Employee/Supervisor hierarchy.
Approval Assignment:
Once the Approver’s position or job is assigned in the HR
record it is necessary to assign the Approval Group for the document type.
Go to the Assign Approval Groups form:
Navigation: Purchasing Responsibility -> Setup -> Approvals -> Approval Assignments
Go to the Assign Approval Groups form:
Navigation: Purchasing Responsibility -> Setup -> Approvals -> Approval Assignments
a. From the list of values choose the position (Approval
Hierarchies) or job (Employee/Supervisor).
b. Save your work.
b. Save your work.
There are 6 document types which can be assigned to approval groups, if necessary. It is also possible to assign multiple approval groups for document types if different approval limits are needed. In this example the same Approval Group is assigned to all document types.
Approval Groups:
Next it is necessary to set the rules for the Approval
Groups.
Go to the Approval Groups form:
Navigation: Purchasing Responsibility -> Setup -> Approvals -> Approval Groups
Go to the Approval Groups form:
Navigation: Purchasing Responsibility -> Setup -> Approvals -> Approval Groups
a. From the list of values choose the Approval Group seen in
the previous Approval Assignment form.
b. Assign at least one Document Total and one Account Range. Save your work.
b. Assign at least one Document Total and one Account Range. Save your work.
In the screenshot below we see there is an unlimited Amount Limit and account range for approval. For more information on assigning approval rules see Note 1107338.1 ‘How to Verify that Document Charge Account and Approval Groups Setup is Valid in Order to Prevent no Approver Found’.
What articles, white papers, or manuals should I read for more information on Approval Hierarchies in Oracle Purchasing?
Note
293315.1 11.5.10 FAQ for Approvals Management (AME) Integration For
iProcurement and Purchasing
Note 396808.1 Oracle Approvals Management Documentation Resources, Release 12
Note 395405.1 Oracle HRMS Documentation Resources, Release 12
Oracle Purchasing User's Guide, Release 11.5.x
Oracle Purchasing User's Guide, Release 12
Note 396808.1 Oracle Approvals Management Documentation Resources, Release 12
Note 395405.1 Oracle HRMS Documentation Resources, Release 12
Oracle Purchasing User's Guide, Release 11.5.x
Oracle Purchasing User's Guide, Release 12
