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1) Purpose This article describes the basics of how Approval Hierarchies work in Oracle Purchasing. It is intended to help users to setup hierarchies for the purpose of routing articles to the proper authority for document approval. Last Review Date June 22, 2010 Instructions for the Reader A Troubleshooting Guide is provided to assist in debugging a specific issue. When possible, diagnostic tools are included in the document to assist in troubleshooting. 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.
There are two distinct uses for position hierarchies in Purchasing: Document approval routing and Document security control. 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 Note: Refer to Representing Jobs and Positions. Supply Base Engineer). Save your work.When checked. Go to the Financial Options form Navigation: PO Responsibility -> Setup -> Organizations -> Financial Options a.Build Position Hierarchies Use the Position Hierarchy window to build and administer your position hierarchies. . . Oracle HRMS Enterprise and Workforce Management Guide. Oracle HRMS Enterprise and Workforce Management Guide for more information about setting up jobs or positions. you assign one or more employees to each job.Security Hierarchies Security Hierarchy is used to determine who can access the purchasing document. Select or deselect ‘Use Approval Hierarchies’. the Approval Hierarchy is used and when unchecked the Employee/Supervisor relationship is used. If you are using positions. 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. you assign one or more positions to each job. . Navigation if using shared HR: Purchasing Responsibility -> Setup -> Personnel -> Jobs 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 not using positions. you must first define all positions.Define Jobs / Positions Use the Job window to create each of the job titles in your organization (for example: Buyer. If you want to specify a Security Level of Hierarchy for any of your document types. b. This step is required if you plan to use either security or position approval hierarchies. You can use a single position hierarchy for both purposes. . Navigation if using shared HR: Purchasing Responsibility -> Setup -> Personnel -> Positions If using a full install of HR: Human Resources Responsibility -> Work Structures -> Positions -> Description Note: Refer to Representing Jobs and Positions. and later assign one or more employees to each position.
and based on the approval limits from the Approval Group. Employee/Supervisor Relationships This type of hierarchy is defined by the employee/supervisor relationship. as defined on the Employee form. As Junior Buyer does not have a high enough approval limits. When the Security Level is set to Hierarchy for a document in the Document Controls window. 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). a. Employee Junior Buyer Senior Buyer Group Manager Is Managed by Senior Manager Group Manager Approval Limit 50.Important: Even if you are using jobs (i. stating – ‘No Approver Found’. this position hierarchy governs access security for that document.e. the document will either be approved or forwarded to the Employees’ Supervisor. the purchase order is forwarded onto the employees’ supervisor.00 Unlimited Employee/Supervisor Example One: The Forward Method is set to Hierarchy on the Document Type form. the purchase order is automatically forwarded on to the Group. c. e.00. The purchase order is then submitted for approval. which is a position hierarchy from the Position Hierarchy window. the purchase order is automatically forwarded to Senior Manager (because Senior Manager is Junior Buyer’s supervisor as defined on the Employee form) d. The Security Hierarchy field will only be enabled when the Hierarchy option is selected for the Security Level on the Document Types form. . If Senior Manager selects “Approve”. Senior Manager responds to the approval notification for this purchase order. To implement this form of approval routing. then the approving employee must enter a forward-to person. Employee/Supervisor relationship) to route documents.00 100. b. you need only to define jobs. If no supervisor is able to be located and the job assigned to the employee does not have approval authority. 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.Manager as Senior Manager does not have a high enough approval limit. The job will then serve as the tie to the approval group. select a Security Hierarchy. Junior Buyer raises a purchase order that has a total value of 150. Here. 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. or the Document will be returned to an Incomplete status and a notification will be sent to the approving employee.
Employee/Supervisor Example Two: The Forward Method is changed to Direct. a. The purchase order is then submitted for approval.00 100. the purchase order is automatically forwarded to Senior Buyer because it is the next position in the hierarchy. Purchasing utilizes positions as a roadmap to determine how and where documents will be routed once the approval process has been initiated. Once all positions have been created. Junior Buyer raises a purchase order that has a total value of 150. Position Hierarchies Position Hierarchies are hierarchies that have a position relationship. When this setup is complete or is changed. so when a purchase order exceeds the limits of the position. Employee Position Junior Buyer Senior Buyer Chief Buyer Approval Example One Manager Position Senior Buyer Chief Buyer Approval Limit 50. it is necessary to build the position hierarchy. If Senior Buyer selects “Approve”. As neither Junior Buyer or Senior Manager have a high enough approval limit. Junior Buyer raises another purchase order with a total value of 150. a. The name of the hierarchy is “Buyer Approval Hierarchy”. the Fill Employee Hierarchy concurrent program must be run for the new hierarchy to come into effect.00. You must set up Positions if you plan to use either security or approval hierarchies. It is first necessary to have created all positions that are going to be used in the system. c.00 Unlimited On the Document Type form Forward Method is set to Hierarchy and Default Hierarchy is set to Buyer Approval Hierarchy. e. 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.f.00. The purchase order is then submitted for approval. . the purchase order is automatically forwarded to Chief Buyer because Senior Buyer does not have a high enough approval limit. b. Each position has approval limits. the purchase order is forwarded onto the next position in the Hierarchy. Purchasing does not check for the primary checkbox on Position Hierarchy form. The hierarchy for positions is defined on the Position Hierarchy form. c. b. As Junior Buyer does not have a high enough approval limit. The purchase order appears in the notification screen for Group Manager where it can be approved or rejected. d. Senior Buyer responds to the approval notification for the purchase order. Position Hierarchy Setup Example For the following two examples we will use the following Approval Hierarchy.
00. When choosing the action of ‘Approve’ for a document. Default Hierarchy In the screenshot above we additionally see the ‘Default Hierarchy’ set to Materials. the default hierarchy is first searched by the employee attempting the approval. the hierarchy can only be changed on the Approval Modal form if the attribute ‘Can Change . Approval Setup Document Types Forwarding Method: The forwarding method is set under document types. if a Forward-To person is not defined and the person taking action does not have sufficient approval authority. As neither Junior Buyer nor Senior Buyer has a high enough approval limit. Navigation: Purchasing Responsibility -> Setup -> Purchasing -> Document Types a. 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.f. But. b. Direct: the document will pass to the next position or supervisor in the hierarchy who has enough authority to approve the document. a. the purchase order is sent directly to Chief Buyer for approval. 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. 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. From the list of values choose the purchasing document you want to assign the forwarding method to. In the field ‘Forward Method’ choose Hierarchy or Direct and save your work. The Default Hierarchy field has a list of values. The purchase order is then submitted for approval. c. Junior Buyer raises another purchase order with a total value of 150. 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. The purchase order notification appears in the notification screen for Chief Buyer where it can be approved or rejected. This field has two options that apply regardless as to whether you use an Approval Hierarchy or an Employee/Supervisor relationship. Approval Example Two On the Document Type form The Forward Method is changed to Direct and the Default Hierarchy remains unchanged. b.
Step 2: Create the User record: Go to the Users form Navigation: System Administrator -> Security -> User -> Define a. Navigation if HR is shared: Purchasing Responsibility > Setup > Personnel > Employees a. If the user has not been entered fill in the required information and link the human resources record in the Person field. Assign a Job if using Employee/Supervisor or Job and Position if using Approval Hierarchies. e. 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. If e-mail notifications are to be sent ensure that the e-mail field is populated. section ‘Define Human Resource key Flexfields (Required)’. 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. Save your work. b. Either query the employee by name or if the employee record has not been entered. Step 3: Setup the user as a Buyer: Go to the Buyers form: Navigation: Purchasing Responsibility -> Setup -> Personnel -> Buyers . Note: For information on creating jobs or positions see the Oracle Purchasing User’s Guide. Choose the Assignment button d. enter the required detail. c. User Setup Regardless if Approval (Position) or Employee/Supervisor hierarchies are used. This information will default from the e-mail address entered in the human resources record above. Add the responsibilities needed for the user. If e-mail notifications are to be sent then enter the users email address in the Email field in the Office Details tab. If Employee/Supervisor is used the Supervisor must be assigned (unless this approver is the last approver in the hierarchy chain). If the user has already been entered then query the user in the User Name field. c. Save your work. b.Approval Hierarchy’ (additionally shown in the screenshot above) is checked on the Document Type form.
Step 4: Run the Fill Employee Hierarchy process if using Approval Hierarchies: Go to the Submit Requests form: Navigation: Purchasing Responsibility -> Reports -> Run a. It is not required to run this report if using Employee/Supervisor hierarchy. b. Go to the Approval Groups form: Navigation: Purchasing Responsibility -> Setup -> Approvals -> Approval Groups a. What articles. For more information on assigning approval rules see Note 1107338. or manuals should I read for more information on Approval Hierarchies in Oracle Purchasing? . Assign at least one Document Total and one Account Range. Save your work. Save your work. In the screenshot below we see there is an unlimited Amount Limit and account range for approval.1 ‘How to Verify that Document Charge Account and Approval Groups Setup is Valid in Order to Prevent no Approver Found’. Note: It is required to run this report if creating or making changes to the Position hierarchy. There are 6 document types which can be assigned to approval groups. white papers. From the list of values choose the Approval Group seen in the previous Approval Assignment form. b. It is also possible to assign multiple approval groups for document types if different approval limits are needed. Save your work. Approval Groups: Next it is necessary to set the rules for the Approval Groups. From the list of values choose the position (Approval Hierarchies) or job (Employee/Supervisor). Note: If the user is an off-line approver it is not required to enter the user as a Buyer here. Go to the Assign Approval Groups form: Navigation: Purchasing Responsibility -> Setup -> Approvals -> Approval Assignments a. Choose the Single Request ‘Fill Employee Hierarchy’. if necessary. In this example the same Approval Group is assigned to all document types. Submit the request and make sure it completes successfully from View -> Requests.a. b. Category and Ship-To are not required. b. Enter the Buyer name and Effective From date. 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.
Release 11.5.Note 293315.5.10 FAQ for Approvals Management (AME) Integration For iProcurement and Purchasing Note 396808. Release 12 Oracle Purchasing User’s Guide.1 Oracle Approvals Management Documentation Resources. Release 12 Note 395405.1 11.x Oracle Purchasing User’s Guide.1 Oracle HRMS Documentation Resources. Release 12 Oracle Human Resource Management Systems User’s Guide .
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