Purchasing Approvals

Job Based Approvals

Position Based
Approvals
Approvals
Management

Outline
Uses supervisor hierarchy to route purchasing
documents for approval
Approval limit (Value and GL Account Range)
defined against Job
When an employee submits a purchasing
document, oracle chooses the employees
supervisor as the approver. By looking at the
approvers job It will determine if they have
the necessary approval rights. If not it will
continue up the supervisor chain until a final
approver is found.
Pros
Typically less overhead to setup and maintain
Cons
Maintenance of supervisor hierarchy when a line
manager is off boarded
Does not support matrix management
Everyone who has the same job will have the same
approval rights (value and GL Account range)
Does not cater for complex approval rules e.g.
technical pre- approval

Purchasing Approvals
Job Based Approvals

Position Based
Approvals
Approvals
Management

Outline
Positions are a unique occurrence of a job
within an Organisation
Positions are grouped together in a hierarchy
which is then used to route purchasing
documents for approval
Approval Value and GL Account Range defined
against position
When an employee submits a purchasing
document, oracle navigates up the position
hierarchy, looking a position holder who has
the rights to approve.
Positions must be used if security hierarchy
rules in purchasing are required
Pros
The position hierarchy used for purchasing can be
different to the hierarchy used for HR approvals
(matrix management)
When searching for an approver, the system ignores
positions that remain vacant
More granular level of approval
Cons
Setup and maintenance of positions is greater than

Purchasing Approvals
Job Based Approvals

Position Based
Approvals
Approvals
Management

Outline
Both requisition and purchase order approvals
supported as of R12.1
Approval rules are built in the Approvals
Management Engine
Approval rules based on any predefined or
user defined attributes
Purchasing will route documents based on
these approval rules e.g. for purchases of
widgets send to joe Blogs for approval
Pros
Flexibility - approval rules are fully configurable
Supports commodity based approvals
Supports complex approval routing including
parallel approvals
FYI Notifications
Support for pre and post approvals
Approvals are built dynamically
Cons
Depending on requirements, the build of approval
rules can be time consuming
Rules may still need to either use a supervisor or
position hierarchy

Organisations
Overview
US Business Group
US Operations
(Ledger)

US Pumps
(west) Inc
(Legal Entity)

US Pumps
Northwest
(Operating Unit)

Factory 1
(Inventory Org)

Factory 2
(Inventory Org)

US Pumps
(East) Inc
(Legal Entity,
Operating Unit,
Inventory org)

US Pumps
Southwest
(Operating Unit)

Factory 3
(Inventory org)

Organisations
Option 1 Factories with the same legal entity and
operating
unit
US Business Group
US Operations
(Ledger)

US Pumps
(west) Inc
(Legal Entity)

US Pumps
Northwest
(Operating Unit)

Factory 1
(Inventory Org)

Factory 2
(Inventory Org)

US Pumps
(East) Inc
(Legal Entity,
Operating Unit,
Inventory org)

US Pumps
Southwest
(Operating Unit)

Factory 3
(Inventory org)

Organisations
Option 2 Same legal entity different operating unit
US Business Group
US Operations
(Ledger)

US Pumps
(west) Inc
(Legal Entity)

US Pumps
Northwest
(Operating Unit)

Factory 1
(Inventory Org)

Factory 2
(Inventory Org)

US Pumps
(East) Inc
(Legal Entity,
Operating Unit,
Inventory org)

US Pumps
Southwest
(Operating Unit)

Factory 3
(Inventory org)

Organisations
Option 3 Different Legal Entity
US Business Group
US Operations
(Ledger)

US Pumps
(west) Inc
(Legal Entity)

US Pumps
Northwest
(Operating Unit)

Factory 1
(Inventory Org)

Factory 2
(Inventory Org)

US Pumps
(East) Inc
(Legal Entity,
Operating Unit,
Inventory org)

US Pumps
Southwest
(Operating Unit)

Factory 3
(Inventory org)

Organisations
Multinational

US Business Group

US Operations
(Ledger)

US Pumps
(west) Inc
(Legal Entity)

US Pumps
Northwest
(Operating Unit)

Factory 1
(Inventory Org)

Factory 2
(Inventory Org)

US Pumps
(East) Inc
(Legal Entity,
Operating Unit,
Inventory org)

UK Business Group

UK Operations
(Ledger)

UK Pumps Ltd
(Legal Entity)

US Pumps
Southwest
(Operating Unit)

UK Pumps Ltd
(Operating Unit)

Factory 3
(Inventory org)

Factory 4
(Inventory Org)