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Contents
1
OVERVIEW ........................................................................................................................................................................... 3
OBJECTIVE ........................................................................................................................................................................... 3
SCOPE/OUT OF SCOPE........................................................................................................................................................ 3
BUSINESS CASE................................................................................................................................................................... 4
5.1 METHODOLOGY ................................................................................................................................................................. 4
5.2 BUSINESS EXAMPLES ........................................................................................................................................................ 4
10
11
12
REFERENCE ........................................................................................................................................................................ 42
13
CONCLUSION ..................................................................................................................................................................... 42
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OVERVIEW
Organizations prefer to have approval process configured for the Payables before the invoice is paid off. This is useful from an
Audit perspective as well as it eliminates mistakes made by data entry clerk. It also leaves very little chance of an unauthorized
payment as approvers might question Corporate Finance team of the organization if some invoice looks out of the ordinary. If the
data entry clerk makes a mistake during entering the invoice, the invoice might be paid off before the mistake is spotted. To avoid
these scenarios organizations might implement AP invoice approval process.
The Invoice Approval Workflow automates your invoice approval process. Based on rules you define (using the Approvals
Management Application), the workflow determines if an invoice needs approval, who the appropriate approvers are, and in what
order approvers should approve payment of the invoice. The workflow then sequentially asks each approver in the approval list to
approve invoices online.
OBJECTIVE
Objective of this white paper is to improve readers understanding of Invoice Approval workflow using Approval management
Engine in R12.This white paper demonstrates few business cases on how invoice is sent for approval using rules defined in
Approval management engine.
SCOPE/OUT OF SCOPE
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TERMS USED
BUSINESS CASE
5.1 METHODOLOGY
The Invoice Approval Workflow automates invoice approval process. Based on rules
defined in AME, the workflow determines if an invoice needs approval, identify approvers, and order in which approvers should
approve the invoice. The workflow then sends approval in a serial order to each approver defined in the approval group. There
are four different business scenarios discussed in this White paper.
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INITIAL SETUP
b)
Query the OU for which you want to enable the Invoice approval workflow
c)
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Note : While defining a FND USER it is not necessary to associate any person or customer.
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BUSINESS FLOW
DISCLAIMER: Audience for this document are the one who knows AME setup in generic.
b.
Create an approval group with list of approvers who would be approving invoice
c.
d.
e.
Initiate Approval
f.
g.
Note the Rule will be triggered based on the Functional amount of Invoice.
For example:Invoice amount (in entered currency) = 50
Functional amount (in ledger currency) = 150
The rule will be triggered based on Functional amount 150
SET UP STEPS
1.
Navigation : AM Business Analyst =>Transaction Type Id: APINV =>Condition => Create
b)
c)
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2.
Navigation : AM Business Analyst =>Transaction Type Id: APINV =>Approver group => Create
b)
c)
d)
e)
Select the approver type as FND USER and associate list of approvers
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3.
Navigation : AM Business Analyst =>Transaction Type Id: APINV =>Rules => Create Rule
b)
c)
d)
e)
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TRANSACTIONAL STEPS
1.
Create invoice with currency different than ledger currency. Navigation: Payables Super user=>Invoices=>Invoice Entry
NOTE : Invoice Curr is EUR, Functional Currency is USD and Approval status of invoice is Required.
2.
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3.
View the approval history of the transaction. Navigation : Invoice Workbench Tool Bar=>Reports=>View invoice approval
history
Note: Here approval goes to MEAGRAW and RUGHOSH as defined in Approval group.
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4.
User MEAGRAW reviews the worklist to approve the invoice. Navigation: Payables Super User -> Workflow -> Worklist
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5.
User RUGHOSH reviews worklist to approve the invoice. Navigation: Payables Super User -> Workflow -> Worklist
6.
To check the final Status of Invoice, navigate to Invoice Workbench= >General Tab and review Approval Status. It should
be Workflow Approved
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End date the existing AME rule: INVOICE HEADER MATCH CHECK and INVOICE LINE MATCH CHECK.
b)
SET UP STEPS
1.
b)
Query Invoice Header Match Check, Click on update icon and enter End Date.
c)
Query Invoice Line Match Check, Click on update icon and enter End Date.
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2.
Navigation : AM Business Analyst =>Transaction Type Id: APINV =>Condition => Create
b)
c)
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3.
Navigation : AM Business Analyst =>Transaction Type Id: APINV =>Approver group => Create
b)
c)
d)
e)
Select the approver type as FND USER and associate list of approvers
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4.
Navigation : AM Business Analyst =>Transaction Type Id: APINV =>Rules => Create Rule
b)
c)
d)
e)
When an invoice is matched to PO, attribute APPROVE_MATCHED_INVOICES is set to True. Once the rule is setup with
condition APPROVE_MATCHED_INVOICES = True, this rule will then be applicable to all the PO Matched invoices.
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TRANSACTIONAL STEPS
1.
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3.
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5.
Note: Here approval goes to MEAGRAW and RUGHOSH as defined in Approval group.
6.
User MEAGRAW reviews the worklist to approve the invoice. Navigation: Payables Super User -> Workflow -> Worklist
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7.
User RUGHOSH reviews worklist to approve the invoice. Navigation: Payables Super User -> Workflow -> Worklist
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8.
To check the final Status of Invoice, navigate to Invoice Workbench= >General Tab and review Approval Status. It should
be Workflow Approved
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SET UP STEPS
1.
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b)
Note: For detailed explanation on how to register an Employee in HMRS, refer Oracle HRMS user guide
2.
b)
c)
In the list of value for PERSON , select the employee created in HRMS (E.g. Agrawal,Meha)
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3.
c)
d)
In the list of value for PERSON , select the supervisor associated to employee created in HRMS (E.g. Arora, Mr.
Rajiv)
4.
Navigation : AM Business Analyst =>Transaction Type Id: APINV =>Condition => Create
b)
c)
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5.
Navigation : AM Business Analyst =>Transaction Type Id: APINV =>Rules => Create Rule
b)
c)
d)
Note: As per above rule if supplier_invoice_amount is greater than 20000 USD, then approval will go to supervisor of requester.
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TRANSACTIONAL STEPS
1.
Create an invoice in Payables, Navigation: Payables Super user=>Invoices=>Invoice Entry. Enter the Requester field.
Here requester is the employee.
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3.
View the approval history of the transaction. Navigation : Invoice Workbench Tool Bar=>Reports=>View invoice approval
history
Note: Here approval goes to Arora, Rajiv supervisor of Requester Agrawal, Meha
4.
Supervisor RKARORA reviews the work list to approve the invoice. Navigation: Payables Super User -> Workflow ->
Work list
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5.
To check the final Status of Invoice, navigate to Invoice Workbench= >General Tab and review Approval Status. It should
be Workflow Approved
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SET UP STEPS:
1.
Create a custom attribute to derive the Legal Entity of transaction. Custom attribute is created when there is no seeded
attribute available to create required AME condition. Following step explains the same.
a)
Navigation : AM Business Analyst =>Transaction Type Id: APINV =>Attribute => Create
b)
c)
d)
Enter description
e)
f)
g)
h)
i)
For more details on custom attribute creation refer to Implementing Oracle Approvals Management Guide
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2.
Navigation : AM Business Analyst =>Transaction Type Id: APINV =>Condition => Create
b)
c)
Specify legal_entity_id.
d)
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3.
4.
Navigation : AM Business Analyst =>Transaction Type Id: APINV =>Approver group => Create
b)
c)
d)
e)
Select the approver type as FND USER and associate list of approvers.
Navigation : AM Business Analyst =>Transaction Type Id: APINV =>Rules => Create Rule
b)
c)
d)
e)
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TRANSACTIONAL STEPS
1.
Create invoice in Legal Entity 204 (used in this business case) .Navigation: Payables Super user=>Invoices=>Invoice
Entry.
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Initiate Approval. Navigate Actions > Select Initiate Approval > Click Ok
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View the approval history of the transaction. Navigation : Invoice Workbench Tool Bar=>Reports=>View invoice approval
history
Note : Here approval is sent to MEAGRAW as defined in approval group of AME rule.
4.
User MEAGRAW reviews the worklist to approve the invoice. Navigation: Payables Super User -> Workflow ->
Worklist..
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5.
To check the final Status of Invoice, navigate to Invoice Workbench= >General Tab and review Approval Status. It should
be Workflow Approved.
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1.
To check the rules which are triggered when you initiate invoice for approval, below steps can be followed:
a)
b)
In transaction Type select "Payables Invoice Approval" and Click on Test workbench,
c)
d)
Enter Transaction_id as Invoice_id(which is having issue) and click on Run Test Case (2).
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e)
2.
Review the Applicable Rules for that particular transaction and the list of Approvers
Invoice approval status stuck in Initiated" status and no approval notification sent to approvers
(Notification stuck in the WF_DEFERRED queue)
a)
b)
c)
d)
e)
TECHNICAL ASPECT
Once the invoice approval work flow is initiated, invoice document approval history can be viewed through View Invoice
approval history tab under reports in invoice workbench. This window following details:-Approver name, future approver,
Amount reviewed, Action date.
View Invoice approval history is enabled only when we navigate to Headers region of invoice workbench. Data shown
in approval history window is based on data from table AP_INV_APRVL_HIST_ALL.
In R12, invoice approval work flow mainly involves the following concurrent programs, work flow and tables:
a) Package: AP_WORKFLOW_PKG (aphanwfs.pls, aphanwfb.pls)
b) Concurrent Program : AP Invoice Approval Workflow (APINVAPR) - apfhanwf.wft
c) Table : AP_INV_APRVL_HIST_ALL, AP_APINV_APPROVERS
Oracle/Client Confidential - For internal use only
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The Figure below describes the workflow process for the Invoice Approval
The Approver can either Approve or Request the lines in the notification.
2.
If the Approver fails to respond, an escalation notification will be sent to his/her Supervisor as setup in HR.
3.
This process Ends in statuses Approve or Reject, which in turn is used in the main process to either continue the
workflow process or to stop it (i.e., Approval stops at the first Rejection).
Note: The workflows shown above are based on the latest available AP_WORKFLOW_PKG (120.64.12010000.56) and
workflow file apfhanwf.wft (120.36.12010000.15)
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11 PARALLEL APPROVAL
Invoice approval workflow now supports parallelization at the invoice header level on 12.1.x and 12.2.x.The main advantage for
this change is to shorten the processing time for an invoice to get approved.
The parallel approval process imposes a hierarchical (tree) structure on the transactions approver list and enables each part of the
tree at a given level to progress through its notification-approval cycle asynchronously. This enables the approval process of each
item in the transaction to continue irrespective of the progress of approval process of other items in the transaction and reduces
the transaction's approval process time.
If user selects the parallel ordering mode, the approval notifications will be sent to all approvers at the same time. The invoice
may get approved when one or all approvers approve the invoice, depending on the voting regime that is set up.
The available voting regimes are serial, consensus, first-responder-wins and order number.
This enhancement is available with 12.2.4 and can be added to 12.1.x by the application of patch 19608529:R12.AP.B
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12 REFERENCE
This paper is intended to supplement the following reference materials, which should also be studied for a full understanding of
the topic.
a)
b)
c)
13 CONCLUSION
The goal of this document is to help you learn and understand the flow of Invoice approval workflow using AME rules. For a
more detailed explanation, please refer to Implementing Oracle Approvals Management and Oracle Payables User Guide.
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