Invoice approval hierarchy in oracle Payables

Invoice approval hierarchy in oracle Payables

In this post , we will be discuss about the Invoice approval hierarchy in oracle Payables. Invoice Approval hierarchy helps to implement the approval process for Payables invoices. Invoice approval hierarchy helps to put the control point for payable invoices for its payment. Un approved invoice cannot be paid and did not show in the Payment batch for the final payment. This is one of the great feature for any organization who wants to put the control in Supplier Invoice Payments. Invoice approval hierarchy helps to put the more visibility/transparency  in the AP invoices and fake invoices can be easily tracked suing Invoice approval hierarchy. Here below is the detail explanation of Invoice approval hierarchy in oracle Payables.

Working of Invoice approval hierarchy in oracle Payables

In invoice approval hierarchy, when any new invoice got created in oracle payable then it went for the approval to some specific approvers as per the Invoice approval rules setup for the organization. Approver can review the Invoice and can approve or reject the invoice based on the understanding.

Key Implementation steps of Invoice approval hierarchy in oracle Payables

1.Assign AME Business Analyst Roles

 2.Grant Access to Transaction Types

3.Create  Attributes

 4.Create Conditions

5.Create Approval Groups

 6.Create Rules

 7.Setup Profile Options

12 Important Steps to configure invoice approval hierarchy in oracle Payables

Step1:- First To configure the Invoice approval , We need to enable the Invoice Approval workflow in Payables Option Setup as below.

Navigation: Payables Responsibility>Setup>Options> Payables Options

For Payables application to use Approvals Management Engine, Use Invoice Approval Workflow Payables option should be checked.  The Invoice Approval Workflow automates your invoice approval process. Based on rules you define, the workflow determines if an entire invoice (document) or invoice lines need approval, who will the approvers be, and in what order the approvers should approve the invoice.

Step2 :- Now, We will create the Approver User Accounts who will approve the Invoice Approval Notifications.

This is required to access the approval notifications to process Invoice approval request. 

Navigation: System Administrator>Security>User>Define

Step3:- Now we will start Configuring the Invoice approval rule in AME.

Go to Responsibility ‘Approvals Management Administrator’

Transaction Type: Payables Invoice Approval 

Navigation: Approvals Management Administrator> Admin Dashboard

For Transaction Type, Payables Invoice Approval, ensure that the order priority is same for Item class Header and Line to use Line level approvals.

Step 4:-

Now we need to go to Oracle Responsibility ‘Approvals Management Business Analyst’

 Navigation: Approvals Management Business Analyst > Business Analyst Dashboard

This is the place where you define Custom Attributes (if needed), Conditions, Approval Groups and AME Rules to get the invoices approved in system.

Step5:- Defining/Using Attributes

Navigation: Approvals Management Business Analyst > Admin Dashboard

Look for Transaction type: Payables Invoice Approval

Click on Attributes link under Define the components section or click on Setup Icon (I) for the transaction type.

Under Attributes tab, you can look for seeded attributes or create a new one on need basis.

Step7:- For Example , We are using the Standard Attributes as below.

1.       TRANSACTION_ORG_ID  

1.       SUPPLIER_INVOICE_LINE_AMOUNT

1.       SUPPLIER_INVOICE _AMOUNT

Step 8:- We have find out all the Attributes , Now we will create the Conditions as below

Define Conditions You create Conditions based on the Attributes defined earlier. 

Navigation: Approvals Management Administrator> Admin Dashboard> Setup > Conditions (T)

First condition TRANSACTION_ORG_ID = 83

Second condition

SUPPLIER_INVOICE_LINE_AMOUNT < $1000

Third Condition

SUPPLIER_INVOICE_LINE_AMOUNT >= $1000

Step 9:- We have created the Conditions too. Now We will use the Use Action Types.

The action type used for this test case is Approval-Group Chain of Authority. The Ordering Mode and Voting Method are set to “Serial” to get invoice approved serially.

Navigation: Approvals Management Administrator> Admin Dashboard> Setup > Action Types (T)

Step 10:-

In this step , we will create the Approval Group , Which will approve these Invoice Approval Notifications.

For this test case, we created an Approval Group based on approver type HR People. 

Navigation: Approvals Management Administrator> Admin Dashboard> Setup > Approval Groups (T)

 Invoice Header Approval for Amount < $1000 

Second approver Group for Invoice Header Approval for Amount >= $1000 as below

Third Approver Group for Invoice Line Approval for Amount < $1000 as below.

 Step 11:- 

Now we will define the AME Rules for Invoice Approval.

Define “Rule” 

Navigation: Approvals Management Administrator> Admin Dashboard> Setup > Rules (T)

a. Invoice Header Approval Rule < $1000

While defining header rule, we will select item class as Header

Step 12:- 

The action type and the approval group defined are selected.

Upon click on Finish (B), the rule gets saved and confirmation message will be shown.

Now We will create the Second Rule as below .

Invoice Header Approval Rule >= $1000

Similarly, like above steps we have created another Rules is created with other conditions as noted below.

 Third AME Rule Creation like above

Invoice Line Approval Rule < $1000

While defining the Invoice Line rule, we will select the item class as ‘Line Item’.

Fourth AME Rule Creation similar to Above Line Level Rule as below.

Invoice Line Approval Rule >= $1000

Similarly another Line Rule is created with other conditions as noted below.

AME Setup has bee completed for the Invoice Approval in Oracle apps r12.

Thanks !!