How To Set Flexible PO Approval Limits

Sometimes you might need to maintain controls over purchases and set flexible limits in the PO approval process. You can set the dollar threshold over which POswould need to be approved manually by a buyer. Here is a summary of a solution to accomplish this:

  • Establish the process for limit-base approvals.
  • Define a descriptive flexfield (DFF) on the Supplier Site to record the Amount threshold limit. If the DFF is blank, there is no limit.
  • Add PO Create Documents workflow attribute “Is PO Line within Tolerance?”, which will call a custom code.
  • Add workflow activity “Is PO Line Under Threshold?” to the “Create and Approve Purchase Order or Release” process, following the activity “Is Automatic Approval Allowed”. Output result of ‘No’ ends process. Output result ‘Yes’ launches the Document Approval Process.

  • Define a custom code to select purchase order’s supplier_siter_id in the PO_VENDOR_SITES_ALL table. Compare all Purchase Order Line(s) Unit Prices to the Site DFF Amount. If no DFF Amount has been defined, substitute 999,999,999. If any Line’s Unit Price is exceeds the DFF Amount, do not submit the PO to the PO Approval Workflow. The PO will remain at Incomplete status and the buyer must approve the PO manually.
  • Optionally, create an Oracle alert to send a listing of the POs being held to the supplier.  The alert could contain the Creation Date, PO Number, Line Number, Supplier Item Number, Quantity Ordered, Unit Price, Buyer Name.

About Marian Crkon

Marian Crkon is a successful independent consultant offering consulting and professional services to Oracle eBusiness Suite clients in the Pacific Northwest and nationwide. Marian has been involved in Oracle consulting projects and IT management for over 18 years now. He established himself an an expert in Oracle Projects and Oracle Financials, and completed several successful implementations for clients in the US and Europe. Marian lives in Seattle with his wife and two children. When he does not work or travel, he spends time with his family.

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