An Introduction to the

Invoice Approval Workflow

Jeannie Dobney, EduSource
&
Karen Brownfield, Solution Beacon
Agenda
• Introduction
• Business scenario and context
• Implementation Overview
– Document Business Logic
– Check Patching Levels
– Payables Set Up
– Oracle Approvals Management set up
– Workflow modification
– Testing
• End-notes
Business Scenario
Oracle Purchasing
Goods Inspection
(Receipting
PO Header Transaction) Oracle Payables
PO Lines Receipt of Goods

Shipments
Standard non-PO
Requisition related Invoice
Distributions

Matching:
Supplier Invoice
2 way - Invoice to PO
3 way - Invoice to PO & Receipt
Approval processed in Oracle Purchasing
4 way - invoice to PO, Receipt &
ensure that organisational approvals are
inspection
obtained before the Purchase Order is
issued.
Recurring Employee
Invoice Expenses
Business Scenario
Oracle Payables

Invoice Payment

Payables Processes:
Ÿ Invoice Validation
Ÿ Invoice Approval Workflow
Ÿ Create Accounting (uses Account Generator)

Excluded from the Approval Process:

Ÿ Expense Reports
Ÿ Recurring invoices
Ÿ PO Matched invoices
Ÿ Invoices for which OAM rules determines approval is not required.
Implementation Steps

• First document your business logic!

– Which invoices are going to be included /
excluded?
– Which values require approval / are some
invoice amounts not material?
– Are there special cases for which additional
approvers may be required e.g. IT, legal work.
– What determines who are the appropriate
approvers?
2. Check Patching Levels

• At least 11.5.4 or later

• Payables mini-pack I
• Workflow 2.6
• Various individual patches…
• Recommendation:
Alicia Hoekstra’s paper: “To Patch or Not to
Patch”
3. Payables Set Up
4. Oracle Approvals Management
• Use this Application to set up the rules
which the workflow will use
• Format: If <Condition> Then <Approval>
e.g. If Invoice Total > $100 NZD
Then Send to Supervisor for Approval
• Documentation from MetaLink (HR or AP)
• Application short name OAM or AME
• Check Site Profile Option: AME:Installed
• Required Responsibility:
AME Application Administrator
(with securing attributes)
Using OAM: Select Trans. Type
OAM Attributes Tab
OAM Setting Attributes
OAM Creating Conditions
OAM Create Condition (2)
OAM Create Condition (3)
OAM Create Condition (4)
OAM Approvals
Edit or Create New Approval Types
Create Approval Rule
Create Approval Rule (1)
Description, Type, Date
Create Approval Rule (2)
Approval Type
Create Approval Rule (3)
Approval
Create Approval Rule (4)
Attributes
Create Approval Rule (5)
Condition
Create Approval Rule (end)
5. Modify the Workflow
Modify the Workflow (2)
WF: Check if Matched to PO
Uses This Attribute
WF: Identify Approver
WF: Send Notifications
WF: Update History
 Test the Workflow

• Create a business case

• Enter an invoice (note it’s invoice ID)
• Validate the invoice
• Initiate Approval using Invoice Actions
• WF Admin: check the WF_Deferred queue
• Start the Workflow listener
• Review the notification & approve the invoice
• In Payables, query back the invoice & review
Test the Workflow
Test the Workflow
Testing in OAM
Testing in OAM (2)
 End-Notes
• Invoice Approval and Validation are not
alternatives, they work together
• Consider mod’s for Cancelled invoices
– Modify the WF notification to show invoice status
– In OAM set a rule to exclude cancelled invoices
• Inquiry and Reporting:
– Invoice Approval History window
– Invoice Approval Status report
• Force Approval option allows manual
approval through Invoice Actions window
 Workflow Administration
• Set up and test email notifications
• Schedule the Workflow Agent Listener
• Identify a user to monitor WF & OAM errors
• Review and set Workflow profile options
• Decide a purge schedule for WF & OAM
• And in Payables:
schedule the Approval Workflow Program
Conclusions & Questions