Concepts

Tasks

Settings

Setting up Purchasing Approvals

To use APM’s document approval function with purchasing documents, identify what types of documents require approval at your site and what approval process is used with requisitions, purchase orders, and contracts. This topic describes how to set up purchasing approvals.

Requisition Policies

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 Order Policies

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.

After you enter the approval settings, to use approvals with these documents you must set up authorized employees as approvers and create approval routes.

To Set up Purchasing Approval Options

1.	On the site window, select the Approvals view and the Settings tab. Select the Settings node in the tree.

2.	Select the Purchasing tab.

3.	Click Edit to modify the site settings. The Edit button is replaced by the Save button.

4.	Select the types of documents that require approval. When you select an option in the Purchasing documents area, its corresponding tab is added.

5.	If requisitions require approval, the Requisitions tab is displayed.

6.	Set the following options:

Setting Name

Description

Approval of requisitions and requisition lines

The level at which requisitions are approved. You can choose from the following options: • Requisitions are approved: When a requisition is sent for approval, the entire requisition is sent to a single approval route. This is the default value. • Requisition lines are approved: When a requisition is sent for approval, each line must be approved separately. The approval requestor will be able to select a different approval route for each line.

Approval is based on

Indicates the value for which approval is required. The options are: • Value of the request – approval is based on the total value of the document • Change since previous approval – approval is based on the net change in the value of the document. For example, if the document was approved for $1000 and then redrafted and changed to $1,150, re-approval is required for the $150 difference.

7.	If purchase orders require approval, select the Purchase Orders tab.

8.	Set the following options:

Setting Name

Description

Route selection based on

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.

Approval is based on

Indicates the value for which approval is required. The options are: • Value of the order – approval is based on the total value of the document • Change since previous approval – approval is based on the net change in the value of the document. For example, if the document was approved for $1000 and then redrafted and changed to $1,150, re-approval is required for the $150 difference.

9.	If contracts require approval, select the Contracts tab.

10.	Select the value that approval is based on. The options are:

•	Value of the contract – approval is based on the total value of the document

•	Change since previous approval – approval is based on the net change in the value of the document. For example, if the document was approved for $1000 and then redrafted and changed to $1,150, re-approval is required for the $150 difference.

11.	Click Save.