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Approving Documents

Using the APM document approval function, you can specify the types of documents your organization requires to be approved electronically and the employees who are authorized to approve the documents. You can set approval limits and create approval routes that define the sequence of approvers. The approval function allows for automatic approvals, approver substitutions multiple approval routes for the same GL account or asset, and separate approvals for the purchased requirements on work orders.

The topics in this section explain the concepts you need to know in order to set up and use the APM document approval functions in your organization.

Documents With Approval Support

The following APM documents support electronic approvals.

Asset management:

•	Asset transfers

•	Asset health reports

•	Asset activity reports

•	Asset change requests (AWEIS)

Strategy development:

•	Asset prioritization analyses

•	Strategy development analyses

•	RSS analyses

•	RCA analyses

Inspection management:

•	Checksheets

•	Inspection reports

Fluid condition:

•	Lab fluid samples

Work management when AWEIS is not active

•	Work requests

•	Work orders

Work management when AWEIS is active

•	Requests for work

•	Work order change requests

•	Work request change requests

Projects

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Projects

Safety management:

•	Safety provisions

•	Override incidents

Purchasing:

•	Requisitions and requisition lines

•	Purchase orders

•	Orders to a bidder-type supplier

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Contracts

Invoicing:

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Invoices

•	Invoice lines

 

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Work Order Approval Policy

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.

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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.

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Requisition Approval Policy

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.

Purchase Orders Approval Policy

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.

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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 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 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.

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Automatic Approvals

You can specify that low-value requests be automatically approved. Any request that is equal to or less than a specified threshold amount is automatically approved when it is sent to the route for approval. The route’s approvers do not have to review and approve it. Alternatively, you can set the route so that all requests must be reviewed by an approver, regardless of the amount of the request.

Note: Approval requests with a zero or no value estimate are not eligible to be automatically approved. Zero or no value requests are always routed for approval.

The approval route’s threshold amount is recorded in the site currency and automatically converted to the enterprise currency. If an approval request comes from another site (with a different currency), APM uses the enterprise currency to compare the request and threshold amounts.

If an approval route will be used to approve work orders, work requests, or asset transfers, you must add one or more assets to the route before it is considered a valid route. If the route will be used to approve purchasing documents, you must add one or more GL accounts before the route is considered a valid route.

If you use an approval route that is not valid for the asset or the GL account on the document being approved, automatic approvals (based on the threshold amount) will not work. The document must then be approved manually.

You can define PM work orders (created from standard jobs) so that they are automatically approved. You can do this in one of two ways:

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Create separate work types to be used only for PM work orders. In the approval settings for the site, do not include your PM work types in the list of work types that require approval. With this approach, all of the work orders created with a PM work type have an approval status of “Approval not required.”

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On the standard job, pre-select the approval route to be used to approve the work order. To have the work order automatically approved, select an approval route with an automatic approval threshold value that is higher than the standard job’s planned cost. When the work order is sent for approval, as long as the estimated cost is not above the route’s threshold value, the work order’s approval status is automatically set to “Approved.”

You can also define PM work orders so that the work order is automatically approved, but the purchase requirements require approval. To do this, use the two-step work order approval process and the approval route’s automatic approval feature:

•	On the site’s approval settings, indicate that the “PM” work type requires approval and select the two-step approval process for work orders.

•	Define an approval route for the “PM” work type. On this route, enter an automatic approval threshold that is high enough to accommodate all (or most) of your standard jobs.

•	Add at least one approver to the route with an approval limit that is higher than the threshold amount. The approver is a safety net used to catch any work orders that happen to exceed the approval threshold.

•	When the PM work order is sent for approval, the work order is automatically approved unless the estimated value is higher than the threshold value. However, the purchase requirements is still sent for individual approval.

You can also use this approach with other types of work orders that do not normally require approval. For example, you could use the same approach for emergency work.

 

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Approval Routes

Approval routes are made up of one or more employees in your organization who have been set up as approvers: people authorized to handle requests for document approval. When you set up an approval route, you identify the approvers who review certain types of documents, such as work requests or purchase orders, and stipulate the maximum value these employees are authorized to approve.

One approver on the approval route must have an approval limit that is high enough to accommodate the approval requests sent to the route.

You can give each approval route a unique name. When users send documents for approval, they are presented with a list of routes from which to select. A descriptive name can help the user select the appropriate approval route. For example, the name for an approval route used for approving purchases in the castor department might be “Castor department purchases” or “Purchases Castor department”.

GL Accounts

If you use an approval route to approve purchasing documents (requisitions, requisition lines, or purchase orders), you must identify one or more GL account numbers for which the route is authorized to approve purchases. When you send a purchasing document for approval, the route can only be used if the GL account being charged is listed on the route. For example, if you send a requisition for approval, the system filters the list of available routes so that only routes that list the GL account charged on the requisition can be selected.

Only whole GL accounts, not segments, can be associated with an approval route.

If a purchasing document is created for an account that is not listed on any route, the default purchasing route for the site is selected. If there is no default purchasing route for the site, any route that approves that type of purchasing document can be selected.

Note: For purchase orders, depending on the setting for your site, approval may be based on buyers rather than on GL accounts.

Buyers

By default, all buyers are available for an approval route when that route is created. However, if a route is used to approve purchase orders, contracts, or invoice lines, you can restrict the route to a specific buyer or buyers. Adding a buyer to an approval route means that only purchase orders, contracts, or invoice lines that are the responsibility of that buyer can be sent to the route. Objects assigned to other buyers cannot be sent to the route.

When you send a purchase order, contract, or invoice line for approval, the system filters the list of available approval routes so that only appropriate routes can be selected. For purchase orders and invoice lines, the system can be set to choose routes based on either the buyer responsible or on the GL account being charged. If the site has been set up for approvals based on the GL account, selecting buyers on the approval route does not affect the route selected by the system.

In other words, if the site is using GL account approval routing for purchase orders and invoice lines, selecting buyers on an approval route only affects route selection for contracts.

Maintenance and Inspection Work

You can create an approval route to approve work management documents (work orders and work requests) or inspection management (checksheets and inspection reports) for a specific asset and its descendants. When you add assets to an approval route, the route can only be used if the document is linked to the assets listed on the route. For example, if you send a work order for approval, the system filters the list of available routes so that only routes that are linked to the work order’s asset to work on or the asset to charge can be selected.

If a route does not exist for an asset, the system looks up the hierarchy for routes on parent assets. If no route is found on a parent asset, the default maintenance route for the site is selected. If there is no default maintenance route for the site, any route that approves that type of document can be selected.

You can associate more than one approval route with the same GL account or asset. For example, you could create two approval routes and associate both of them with the same asset. Either of the routes could be used to approve a work request or work order for the asset.

Projects

Your site’s approval settings determine if projects require approval. When a project is sent for approval, the route selected is based on the project that is being approved. Each approval route for projects can identify the project or projects it can be used with. Alternatively, on the project itself, you can add the project to a new or existing route. Approval route selection is not based on the project’s GL account segment.

For approval purposes, the value of the project is determined as follows:

•	If the project does not have planned costs, the project’s estimated cost is used. The estimated cost includes the cost of the project’s sub-projects

•	If the project has planned costs, the project’s total planned cost is used. The planned costs used include the sub-projects’ planned costs

The system uses the project hierarchy to push the project’s approval status down to the sub-projects. When a project’s approval status changes to “sent for approval”, “approved”, “rejected”, or “redrafted”, the status is also applied to all of the project’s sub-projects. The project’s approval status is not applied to sub-projects that are being approved separately.

Project statuses are flexible. Depending on your site settings, certain actions (such as editing) might or might not be allowed when a project is waiting for approval, approved, or rejected.

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Approval Process

The approval process can be divided into the following steps:

1.	Determining if approvals are required

2.	Selecting the approval route

3.	Routing the request to the approver(s)

4.	Approving or rejecting the request

Determining if Approvals are Required

The first step in the approvals process is to determine whether or not approvals are required for the type of document being created. The site’s approval settings are used to determine if approvals are required for a document. If approvals are not required, the document’s approval status is set to “Approval not required” and the rest of the approval process is bypassed.

Selecting Approval Routes

When you send a document for approval, the system searches for appropriate approval routes for that document. The system filters the list of available routes so that you can only select a route that:

•	Is appropriate for the type of document being approved (for example, work order, requisition, or safety management object)

•	Fits within the minimum (threshold) value for the route

•	Matches the asset being charged (for work requests and work orders only)

•	Matches the work type (for work orders only)

•	Matches either the GL account being charged or buyer responsible, depending on the site setting (for purchase orders only)

•	Matches the GL account being charged (for requisitions only)

•	Matches the buyer responsible for the document (for contracts only)

•	Matches the project being approved (for projects only)

If the system cannot find an approval route that meets the above criteria, it first checks if the employee is assigned a default approval route for the type of object and then uses the set of default routes for the site. Each site can have different default routes selected. You can also select default routes for:

•	Purchasing documents (requisitions, purchase orders, contracts)

•	Maintenance documents (work requests and work orders)

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Projects

If the site does not have default routes assigned and the system cannot find an appropriate route for an approval request, you must select a route from the entire list of routes in the enterprise.

Redrafting a Request

Redrafting allows a document to be revised. If a request for approval has been returned unapproved or if you wish to make changes before it is approved, you can redraft the document. Redrafting cancels any approval request and removes it from the approver’s list of active documents to be approved. When the document is revised, it must follow the approval process from the beginning.

Routing the Request to the Approver(s)

APM sends the request for approval to the first employee or group on the route. If the estimated value of the request exceeds the first employee’s approval limit, it is routed to the next employee on the route (that is, to the approver with the next highest approval limit). Each approver on the route can write comments on the request before it goes to the next person. This process is repeated until the request reaches an employee with the appropriate approval limit, who then approves the request.

Approvers who are set up to approve all requests to the route are last on the route, even if their approval limit is lower than other approvers on the route. This setting overrides the approval route’s threshold amount (if set). If an approver on the route must approve all requests, all requests are sent to him or her regardless of their values. For example, you could have an approver who checks certain work orders for safety reasons.

Approvers can specify in their employee record that they wish to be notified by email when an request is sent to them.

Forwarding an Approval Request

An approver can forward a request to another employee. For example, the approver might want to ask the requestor to clarify something about the purpose or cost of the request, ask another employee for input on the request, or ask another employee to approve or reject the request on the approver’s behalf.

The approver can indicate whether or not the approval request is to be returned after the recipient responds.

Approving a Request

Because an approval route can have several approvers, each with different approval limits, and one or more approvers can be required to approve all requests, the process of approving a request can be complex. The following examples illustrate this step in the approval process.

Example 1: An approval route has been defined for approving work orders. Three approvers have been identified on the route:

•	Bill: approval limit of $1,500

•	Sal: approval limit of $5,000

•	Rick: approval limit of $25,000

A work order with a planned cost of $1,250 is entered and sent for approval. The request is sent to Bill. Bill reviews the work order and approves it. Because the value of the work order is within Bill’s approval limits, the work order is updated as approved. No further approval is required.

A second work order is entered and sent for approval. The planned cost of this work order is $5001. Again the work order is sent to Bill, who reviews and approves it. Because the cost of this work order exceeds Bill’s approval limit, the request is sent to Sal. Sal reviews the work order and also approves it. Sal’s approval limit is not sufficient to approve the work order, so the request is now forwarded to Rick. Rick approves the request and, because it is within his approval limit, the work order is now approved.

Example 2: An approval route has been defined for approving work orders. Three approvers have been identified on the route:

•	Bill: approval limit of $1,500

•	Sal: approval limit of $5,000

•	Rick: must approve all requests

A work order with an estimated value of $1,250 is entered and sent for approval. The request is sent to Bill. Bill reviews the work order and approves it. Although the value of the work order is within Bill’s approval limit, the request is now forwarded to Rick because Rick must approve all requests. Rick approves the request and the work order is now approved.

Example 3: An approval route has been defined for approving work orders. Two approvers have been identified on the route:

•	Bill: approval limit of $1,500

•	Sal: approval limit of $5,000

A work order with no estimated value is entered and sent for approval. The request is sent to Bill. Bill reviews the work order and approves it and the work order is now approved.

Rejecting a Request

An approver does not always approve a request. The request might be returned to the originator for additional information or simply rejected. When an approver rejects a request, the status is changed to “Approval Rejected”, and the document does not continue to the next approver on the route. The originator can revise the request and re-submit it for approval or cancel the request.

A re-submitted request is routed through the complete approval process. Any approvers who approved the request the first time must approve it again. This ensures that the request has not significantly changed without the approver’s knowledge.

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Approval Route’s Site

The approval route’s site is set as the current site when the route is created (that is, the site from which you have created the route) and cannot be changed. The approval route’s site affects which employees, GL accounts, assets, and currencies are used on the route, as well as the documents that the route can approve.

•	Employee: Only employees in the approval route’s site and its ancestor sites can be identified as approvers on the route.

•	GL Accounts: All GL accounts are owned at the enterprise level (top site). Therefore, all GL accounts are available for use on an approval route on any site.

•	Assets: Only assets at the approval route’s site and its descendant sites can be identified as being approved by the route.

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Currency: A route’s maximum approval limit is recorded in the currency used by the route’s site. The limit is also converted to the enterprise currency (using the exchange rate defined in the enterprise’s international settings). Similarly, approval requests are recorded in both site and enterprise currencies. If an approval request originates in another site (with a different currency) APM compares amounts using the enterprise currency to filter the list of available routes and to route the request to the appropriate approvers.

Note: Approval routes must be set up at a site type that owns the object. For example, if projects are owned at only the “Corporate” site type, then approval routes for projects must be set up at the “Corporate” site.

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Approver

Approvers in APM have the authority to approve or reject documents that are sent to them for approval using an approval route. Approvers have maximum approval limits for each approval route they are on. You can specify that an approver must review all requests.

When you set up an approval route, you will identify the approvers who will review the documents sent to the route. You can specify the maximum value these employees are authorized to approve.

On an approval route, you can define an approver as one or more employees. When two or more employees are included, approval is based on one of the following responses:

•	Any one of the employees can approve a request

•	All of the employees are required to approve each request

•	A specified number of employees (for example, two out of four) are required to approve a request

Note that when any one of the employees rejects a request, it is returned to the requestor with the status “Rejected”.

Approvers who are set up to approve all requests to the route are last on the route, even if their approval limit is lower than other approvers on the route. This setting overrides the approval route’s threshold amount (if set). If an approver on the route must approve all requests, all requests are sent to him or her regardless of their values. For example, you could have an approver who checks certain work orders for safety reasons.

For example, a route contains three approvers: Bill with an approval limit of $2,000, John has an approval limit of $5,000, and Tom who is flagged as approving all requests. A request for $500 is sent for approval. The request is first routed to Bill, who reviews and approves it. The request is not sent to John for approval because Bill's approval limit was sufficient to approve the request from a monetary point of view. The request is sent to Tom, because he must approve all requests.

Employees with approval authority for different areas of responsibility can be included on multiple approval routes. However, an employee cannot be included more than once on the same approval route. For example, it is valid for John to be included on an approval route for purchases in the castor department and on a different approval route for maintenance work in the same or a different department. It is not valid for John to be mentioned twice on either of these routes.

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Approval Limit

The approval limit identifies an approver’s spending or authority limit and also controls the order in which requests are approved. An approval limit is set for each employee on each approval route. An employee can have different approval limits on different routes.

One approver on the approval route must have an approval limit that is high enough to accommodate the approval requests sent to the route.

Approver Substitutions

In APM, approver substitutions are used when an approver wants to delegate approval responsibilities to a stand-in approver for a period of time. Substitutes are usually appointed when an approver is going to be unavailable for an extended period, such as during a vacation. The original approver’s approval limit is used.

A substitute approver can be identified in one of two ways. The next approver on an approval route can be named as a substitute. Then, all new approval requests skip the original approver and move to the next approver on the route, unless all other approvers in the route have responded. The other way to identify a substitute approver is to assign a specific employee as the substitute. Different substitutes can be named for each approval route.

While the substitution is in effect, any requests that would normally be sent to an approver are routed to the substitute. Substitutions are in effect for the specified period of time or until the original approver cancels the substitution.

When a substitution is canceled, approval requests that have already been routed to the substitute are not affected by the cancellation. To re-route these requests, the substitute can access the requests and forward them to the original approver (that is, the employee for whom the substitution was created). Requests sent after the substitution is canceled are routed to the original approver.

For example, James is away on vacation and approval requests are re-routed to Rob. When James returns, he cancels the substitution and new requests are sent to him. Requests that were sent to Rob while James was away and are still waiting for approval are not automatically sent to James.

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Bypassing Other Approvers for a Request

Situations can arise where a document is waiting for an approver to act, but the approver is unexpectedly absent due to an illness or some other reason and has not named a substitute. Circumstances might not allow you to wait for the employee’s return. It could be necessary to bypass the absent employee.

Any employee identified as an approver on the same approval route and who has a higher approval limit than the absent employee can approve the request. The absent employee and any approvers between the absent employee and the actual approver are pre-empted by this approval.

A warning message advises that you are pre-empting the current approver. If you accept the warning, you can approve (or reject, or forward) the request.

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Approval Status

In APM, documents can have the following approval statuses. The status icons are displayed in lists of documents.

Status	Description
Approval not required	The document does not require approval. It is assumed to be approved.
Unapproved	The document requires approval. It has not yet been sent for approval.
Waiting for approval	The document requires approval. It has been sent for approval but is not yet approved. If multiple approvals are required, the document might have been approved by one or more approvers but still requires additional approval.
Approved	The document has been approved.
Rejected	The document has been returned by an approver without being approved. If multiple approvals were required, one or more of the approvers might have approved it before it was rejected.

Each approval status can be assigned an icon to provide a visual cue to the current status for documents that require approval.

Note: Project statuses are more flexible than approval statuses for other documents. The statuses for projects at your site might not match the statuses described above.

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