4 Replies Latest reply on Jul 8, 2011 3:32 PM by Karthik Gopaluni

    Purchase requisition approval requirement

    872630
      I have a very unique requirement of approval requirement in purchase requisition. that is as, Once my requisition is prepared it needs approval from 3 different approver then it will be finally approved.

      Scenario is as :

      ->User creates the requisition and submit it for the approval of the Department HOD (Head of the department).
      ->Now department HOD approves it and send it to the Store department for the Store HOD approval.
      ->Now the store HOD Approves it and send it to the buyer's approval.
      ->Now when the buyer approves it , the requisition should be finally approved.

      After buyers approval only the requsition should be considered approved and then only PO can be prepared form that requisition. Now constarint is that, Buyer can approve only if it is approved by the Store HOD. Again Store HOD can approve only if Department HOD have approved it.

      The requisition approval should strictly follow the path for approval as,

      Creation by user and submitted for Department approval-> HOD Approval -> Store HOD approval -> Buyer Approval.

      Any help in this regard will be highly appreciated.

      Regards
        • 1. Re: Purchase requisition approval requirement
          Sandeep Gandhi, Consultant
          Your scenario can be modeled using purchasing hierarchies.
          Setup the 3 positions.
          Assign people to these 3 positions.
          Give $0.01 approval limit to the first 2 positions.

          See http://applearn.blogspot.com/2007/11/setup-approval-hierarchies-in-oracle.html

          If you have more complex requirements, you can use AME.
          http://apps2fusion.com/at/53-rs/284-ame-approval-management-engine

          Sandeep Gandhi
          • 2. Re: Purchase requisition approval requirement
            872630
            Hi Sandeep,

            Now we are doing as you have sugested in your 1st advice. But the issue is that, Planner have to take approval of 3 person HOD, Store Manager and then finally buyer. Again buyer should not be able to approve the PR with out the approval of Store Manager and Store manager should not be able to approve the PR with out the approval of HOD.

            Anyway thank you Sandeep. We are now planning to do it by personalization of the user LOV with the help of Keyflex field.

            Anyway could you please tell me that, wheater AME(Oracle Approval Management) comes seeded in inventory/purchasing or we need to procure separate license for it ?
            • 3. Re: Purchase requisition approval requirement
              Sandeep Gandhi, Consultant
              I am not sure why the first option does not work for you.
              Have you set up the approval hierarchy properly?
              In the hierarchy, the Planner should report to HOD, HOD to store manager and Store manager to Buyer.
              The Planner, HOD and Store Manager should have a $0.01 limit.

              In this scenario, every requisition over 1 cent will have to be approved by 3 people.

              Regarding AME:
              AME is bundled with EBS. You do not need separate license. See Frequently asked Questions on AME: Doc ID: Note:431815.1.

              Hope this helps,
              Sandeep Gandhi
              • 4. Re: Purchase requisition approval requirement
                Karthik Gopaluni
                I agree with Sandeep it will work for you. You also can have this setup for Supervisor hiearchy but position hiearchy sound more apt for the scenario (HOD, Store Manager).