Oracle Applications

Release12.1.3

Payables Invoice Approval

White Paper

GreenChain Software Solutions Pvt. Ltd.

www.greenchain.biz

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 Contents

Payable Invoice Approval Introduction.................................................................................................... 3

Structure of AME ........................................................................................................................................ 3
1. Transaction Type ............................................................................................................................... 3
2. Attribute: .............................................................................................................................................. 3
3. Condition: ............................................................................................................................................ 3
4. Action Type: ........................................................................................................................................ 4
5. Approver Group:................................................................................................................................. 4
Approver Group – Voting Regimes.................................................................................................. 4
6. Rule ...................................................................................................................................................... 4
Requisition Approval .................................................................................................................................. 6
Payable Invoice Approval Test Workbench ........................................................................................... 7

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 Payable Invoice Approval Introduction

Payable Invoice Approval is a workflow process that enables you to automate the approval process. It
helps in customizing and setting approval methodology based on
o Approver
o Sequence of approval
o Criteria for approval

In what cases Invoice Approval workflow will not apply

• When the Expense Report is imported
• In the case of Recurring invoices, if approval is not required as per the template
• For those invoices before this feature is enabled

Structure of AME
AME is a framework of well-defined approval rules constructed using the following 5 components for a
given

1. Transaction Type
2. Attributes
3. Conditions
4. Actions
5. Approver Groups
6. Rules

1. Transaction Type:
Transaction Type is a distinct set of approval rules used by certain category of transactions in an
integrating Application

2. Attribute:

Attributes in AME are placeholders for transaction data elements. They are basic elements of an AME
rule.

Attributes can be static (fixed value) or dynamic (SQL Query based). AME comes with several seeded
attributes for each of the transaction types in the system. If the seeded attributes cannot be used for
approval rules, then organizations can define their own attributes.

Attributes can be shared across various transaction types. Attributes can be defined at 3 different levels
Header, Line Item and Cost Center level.

3. Condition:

The “Condition” component is used to tell AME engine to trigger an AME rule if the result of the condition
is TRUE.
One or more attributes are used to define a condition. In the condition setup, an attribute is associated
with a value or range of values. At runtime, the transaction type value is evaluated against the attribute
value. If the value transaction type value qualifies with the attribute value, the outcome of the condition is
TRUE and the AME rule is eligible to trigger. Otherwise, the condition will yield FALSE and the rule shall
not apply.

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Ex: This condition states if the payable Invoice Total is > 0 and < 10000 and the currency is “INR”, then
tell AME to enable the rule associated with this condition to fire.

4. Action Type:
An Action Type is a collection of one or more Actions having similar functionality. An Action tells AME how
to modify a transaction’s approval process in a certain way.AME provides several seeded action types or
one may define a custom action type. The seeded Action Types available in AME can be used to ascend
organization hierarchies. Seeded Actions Types available in AME cannot be used with any transaction
type.

5. Approver Group:
Approver Group is used to fetch approvers from Oracle Applications (HRMS). Approver Group can be
static or dynamic in nature.

Static approver group, the approvers are constant, added at the time of Approver Group setup and will be
listed as Group Members.

Dynamic approver group, the approvers are generated at run time using an SQL Query in the approver
group setup and are later identified as Group Members at run time.

Approver Group may have a voting method assigned such as Consensus, First Responder Wins, Order
Number and Serial. The voting method assigned to an approver group determines the order in which the
Group Members are notified and also how the decision of the group’s approval.

Approver Group – Voting Regimes

• Serial – Members are notified one after the other according to their member order (ties broken
arbitrarily). All members must approve.

• Consensus – Members notified in parallel. All must approve.

• First-Responder-Wins - Members notified in parallel. First responder = group’s decision.

• Order-Number – Members notified according to order, ties notified in parallel. All must respond.

6. Rule

A Rule (also called as “Approval Rule”) in AME is used to transform the business rules into approval rules
to specify approvers in the transaction’s approval list.

Rule is the last component step in AME configuration process. A rule is constructed using the following
components: Rule Type, Item Class, Category, Conditions and Actions

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List-Creation

If invoice amount > $1000 INR (condition), THEN require approval one job levels above requestor.

List-Creation Exception

If invoice amount > $500 INR and pay group = Employee, THEN require approval two job levels above
requestor.

List-Modification

If any approver = Sam Clark, THEN grant final authority.

Pre and Post

If expenditure category = Computers, THEN require approval from IS department.

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Requisition Approval

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 Payable Invoice Approval Test Workbench

Setting up Responsibilities

1. Login as SYSADMIN user (or a user that has full User Management functionality.
2. Create a New user account and give an appropriate effective date. Do NOT add any Approval
Responsibility.
3. Save the record.

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4 Switch the responsibility to User Management and Navigate to the Users function

5. Query for the newly created user.

6. Click on the update action from the result table.

7. Click on the Assign Roles button

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8. Change the “Search By” field from “Roles and Responsibilities” to “Roles”
9. in the search window, query for Approval%
10. Following five roles will be displayed.
11. Select only the “Approvals Management Administrator” and “Approvals Management Business
Analyst” roles.

12. After selecting the Roles, provide the Justification for the role and the effective date.

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13. Now switch the responsibility to Functional Administrator.
14. Click on create grants under the grants sub-tab.

15. Enter a Grant Name and provide an effective date.

16. Navigate to the security Context region and select the Grantee Type as ‘Specific User’
17. In the Grantee field select the newly created User
18. In the Data Security region select ‘AME Transaction Types’ as the Object.

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19. Clicking Next will take you to the ‘Select Object Data Context’ page’.
20. You have a default value of ‘All Rows’ in the Data Context Type, leave it as it is, and navigate further.

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21. In the ‘Object parameter and Select Set’ page, enter ‘AME calling applications’ as the value in the Set
field.

22. Clicking Next will take you to the Review page.

23. Verify the information and submit the transaction.
24. Now Switch the responsibility to System Adminstrator and Navigate to System Profiles.
25. Query for the profile ‘AME: Installed’ at the required level and set the value to ‘Yes’.
26. Save the data.

27. Now you can login as the newly created user.

28. You should be able to see the following responsibilities:

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a. Approvals Management Administrator
b. Approvals Management Business Analyst

29 Select Payable Invoice Approval as Transaction type

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Condition: Select “is greater than or equal to “0” and less than equal to “10000””

Fill in the required info included the name of the group

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Create Rules with the help of condition and action.

Go to Payables Option select Approval (T), should be enable “use Invoice Approval workflow” and enable
“Require validation before Approval.

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Enter supplier invoice details and amount should be “>0 and <10000” and select Requestor name.

->Before validate the invoice Approval status as “Required”

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->After validate the invoice Approval status as “Initiated”

Once Invoice validates and create accounting completed, invoice goes to supervisor whom approves this
invoice.

Go to Reports(M)->select View Invoice Approval History. Here we can see Approval date, Action,
Approver name and Amount Reviewed.

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Supervisor will approve/reject/reassign based on the terms.

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->Once Approver has approved the invoice then invoice Approval status has changed to “Workflow
Approved”

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