Concepts

Tasks

Settings

Setting up Document Approvals

Before APM users can use the approval process, the following tasks must be performed for each site:

•	Define the site’s approval settings, which includes selecting the document types that require approval, setting options for the different document types, and assigning default approval routes to the site.

For information about defining your site’s approval settings, see Approvals Settings.

•	Set up employees to be approvers, which involves selecting the types of documents each approver is responsible for and selecting their notification options. You can also set up substitute approvers to fill in when an approver is not available for an interval of time.

•	Create approval routes, which includes selecting document types, approvers, and options for the different document types.

The following sections explain the policies for work orders, requisitions, purchase orders, invoices, and invoice lines.

Work Order Approvals

Work order approval can consist of a single- or two-step process, depending on your organization’s policies. Work orders can be approved as a single document, or they can require a separate approval step for requirements.

If a single-step process is used, approving the work order approves both the work order and all of its requirements: both the work that is being done and any requirements that have to be purchased to complete it.

If the two-step process is used, the work and purchases are approved separately. The first step is approving the work. Once the work has been approved, a separate approval request is created for each of the work order’s requirements with a fulfillment method of purchase. If you select the two-step process for work orders, APM automatically sets requisitions as requiring approvals.

Work Order Approvals by Work Type

For work orders, you have the additional option of controlling approvals by work type so that only work orders of the work types you specify are subject to the approvals process.

On a work order, each task can have a different work type. If any of the work order’s tasks have a work type that requires approval, the work order and all the tasks are sent for approval.

When a work order has tasks with work types that do not require approval, the work order’s approval status remains always as “Approval not required” and the work order (and requirements) cannot be sent for approval.

Standard Job Work Types and Routes

You can specify a standard job’s work type so that work orders created from the standard job use the work type entered on the job. If approval is based on work types, the work type entered here controls whether or not the work order can be sent for approval.

Planners can indicate the approval route to be used with the work orders created from a standard job. If an approval route is entered on the standard job (or PM route), the work order is sent for approval as soon as it is created to the route entered on the job. If an approval route is not entered on the standard job, one can be entered when the resulting work order is sent for approval.

TOP

Requisition Approvals

Requisitions can be approved as a single document or by requisition line. If requisitions are approved as a single document, one approval request is sent that approves all of its lines.

If requisitions are approved by line, a separate approval request is created for each line on the requisition. Approving a line approves only that line. The requisition’s remaining lines must also be approved.

You can choose to approve only requisitions that are entered manually, only requisitions that originate from the replenishment process, or requisitions from both sources. If the two-step approval process is selected for work orders, APM automatically selects requisitions as requiring approvals.

Requisitions are approved based on the GL account selected for the requisition or requisition line. When a user sends a requisition for approval, the system filters the list of available approval routes to include only those routes that include the GL account being charged. If there is no approval route for that GL account, the system selects the default purchasing route for the site. If there is no default purchasing route, the list includes all approval routes able to approve requisitions.

TOP

Purchase Orders Approvals

When approvals are enabled for purchase orders, buyers can create purchase orders for suppliers that are identified as “bidders”. Bidders are suppliers that buyers actively request prices from, but with which they have not yet placed regular orders. They might want to use the supplier for emergency orders or trial orders. However, before you can place an order with a supplier listed as a bidder, the purchase order must be approved by an appropriate approval route. For this reason, when approvals are disabled for purchase orders, buyers cannot select bidder suppliers when fulfilling a purchase order.

You can set the system to select approval routes for purchase orders by one of two methods: GL accounts or Buyers.

When the GL accounts option is selected, the system filters the list of approval routes to include only those routes for the GL account being charged on the purchase order.

When the Buyer option is selected, the system filters the list of approval routes to include only those routes for the buyer responsible for the purchase order.

If there is no appropriate approval route for either the GL account or buyer, the system selects the default purchasing route for the site. If there is no default purchasing route, the list includes all approval routes able to approve purchase orders.

TOP

Invoice and Invoice Line Approvals

Invoice approval approves the invoice as a whole for payment. Typically, an invoice is approved by the person responsible for the account to which the invoice costs are charged.

Most invoices do not require approval. The costs were approved when the requisition and/or purchase order was created. However, invoice approvals can be used to:

•	Approve invoices that do not refer to a purchase order

•	Approve credit memos (by selecting credit memo invoice types for approval)

•	Approve high value invoices

Invoice approval can be activated by invoice type. Because the invoice type defines whether the invoice is a regular invoice or credit memo, you could require that credit memos be approved, while not requiring approval for invoices.

For invoices, approval route selection is based on the GL accounts charged. The approval route’s automatic approval threshold amount is used to automatically approve low value invoices.

Invoice line approval is used to approve the individual lines on an invoice. Line approval is used when the invoicing clerk cannot accept an individual line because the price difference exceeds the defined tolerances. This situation requires an additional level of approval.

If an invoice line is entered and its price difference exceeds the tolerances, the following behavior occurs:

•	If line approval is being used:

•	The invoicing clerk is warned that the price exceeds the price tolerances.

•	The invoice line status is set to unapproved. The invoice’s post method is disabled; the invoice cannot be posted until the line is approved.

•	The invoice line is sent for approval.

•	The line is approved.

•	If there are no other lines that require approval, the invoice can now be posted.

•	If line approval is not being used:

•	The invoicing clerk is warned that the price exceeds the price tolerances.

•	The invoice’s post method is disabled; the invoice cannot be posted until the line is made acceptable.

Approval route selection is based on the purchase order line’s buyer.

Approver limits are based on the value of the difference between the purchase order line and invoice line. For example, if the purchase order line value is $1,000 and the invoice line value is $1,500, the line must be approved by an approver with an approval limit of $500 (the difference between the purchase order line and the invoice line).

When both invoice and invoice line approvals are being used together, the workflow is as follows:

•	Any invoice lines that require approval must be sent for approval and be approved.

•	Once all of the lines have been approved, the invoice is sent for approval.

TOP