Purchase Order Approval Using Approval Management Engine

AHMED ISMAIL I

Spread the Knowledge

Purchase Order Approval

Using Approval Management

Engine (AME)

Prepared by: Ahmed Ismail Abdelsalam

Title: Oracle SCM Consultant

AHMED ISMAIL II


Table of Contents

Introduction _________________________________________________________________ 1

Part 1 – How to Setup Purchase Order Transaction Type-ORACLE Metalink Note __________ 1

1.1 Apply Required Rollup Patch ___________________________________________________ 1

1.2 Create and Populate Document Styles ___________________________________________ 1

1.3 Approvals Management Engine (AME) Setups _____________________________________ 6

Part 2 –Customer Case Study ___________________________________________________ 10

2.1 Case Study Overview ________________________________________________________ 10

2.2 Creating/ Updating PO Document Styles ________________________________________ 11

2.3 Define Position Hierarchy ____________________________________________________ 13

2.4 Select AME Purchase Order Transaction ________________________________________ 17

2.5 Define Attributes ___________________________________________________________ 18

2.6 Define Condition ___________________________________________________________ 23

2.7 Define Action Types _________________________________________________________ 26

2.8 Define Rule(s) ______________________________________________________________ 29

Part 3 – Test Case ____________________________________________________________ 32

3.1 Given Data for the test Case __________________________________________________ 32

3.2 Standard Purchase Order Cycle ________________________________________________ 32

3.3 Contract Release Cycle ______________________________________________________ 37

AHMED ISMAIL III


List of Figures

Figure 1-Document Styles Navigation _____________________________________________________________ 11 Figure 2-Position Hierarchy for Option 1 ___________________________________________________________ 13 Figure 3-Same Position can't be entered in the same Position Hierarchy _________________________________ 14 Figure 4- Position Hierarchy for Option 2 __________________________________________________________ 15 Figure 5-Case Study Position Hierarchy ____________________________________________________________ 16 Figure 6-Purchase Order AME Transaction Type ____________________________________________________ 17 Figure 7-Attributes Link ________________________________________________________________________ 18 Figure 8-Create Attribue _______________________________________________________________________ 19 Figure 9-Update NON-DEFAULT POSITION STRUCTURE ID ____________________________________________ 21 Figure 10-Condition Link _______________________________________________________________________ 23 Figure 11-Create Conditions ____________________________________________________________________ 23 Figure 12-Defining Condition Process _____________________________________________________________ 24 Figure 13-Contract_reference (1) condition ________________________________________________________ 25 Figure 14-Contract_reference (2) condition ________________________________________________________ 25 Figure 15-Action Type Link ______________________________________________________________________ 26 Figure 16-Create Action Types ___________________________________________________________________ 27 Figure 17-Requires approval up to HR Positions: 01.Admin Manager ____________________________________ 27 Figure 18-Requires approval up to HR Positions: 01.Fin Manager _______________________________________ 28 Figure 19-Rule Link ____________________________________________________________________________ 29 Figure 20-Create Rule _________________________________________________________________________ 30 Figure 21-AME Position Hierarchy Rule for Standard PO ______________________________________________ 31 Figure 22-AME Position Hierarchy Rule for Contract Release __________________________________________ 31 Figure 23-Standard PO/Manager Login ___________________________________________________________ 32 Figure 24-Create Standard PO ___________________________________________________________________ 33 Figure 25-Check Standard PO Status ______________________________________________________________ 34 Figure 26-Check Action History __________________________________________________________________ 35 Figure 27-Standard PO/Admin (Approver) Login ____________________________________________________ 35 Figure 28-Approving Standard Purchase Order _____________________________________________________ 36 Figure 29-Standard Purchase Order Approved ______________________________________________________ 36 Figure 30-Referring Contract Number _____________________________________________________________ 39 Figure 31-Fin Manager Login____________________________________________________________________ 40 Figure 32-Approving Contract Release ____________________________________________________________ 41

AHMED ISMAIL 1


Introduction

his White Paper contains 2 main part, the first part is representing how to enable approval

management engine (AME) and how to set it up (basic setup) based on an Oracle Metalink note.

The second part is representing a client case study that is resolved by using Purchase Order AME

and can't be resolved by the standard approval functionality using Position Hierarchy or supervisor

approvals. The reader should have intermediate knowledge about Purchase orders approvals (Position

Hierarchy) as a per requisite in order to understand this white paper

Part 1 – How to Setup Purchase Order Transaction Type-ORACLE

Metalink Note

1.1 Apply Required Rollup Patch

1. Apply Patch: 14254641:R12.PRC_PF.B

1.2 Create and Populate Document Styles

1. Choose Document Styles menu option, see image below

T

https://support.oracle.com/epmos/faces/ui/patch/PatchDetail.jspx?patchId=14254641

AHMED ISMAIL 2


2. Click on Create button to create a new Document Style (can also pick existing Document Style

listed), see image below

AHMED ISMAIL 3


3. Populate these fields, see image below

Approval Workflow = PO Approval Workflow

Workflow Startup Process = PO AME Approval Top

AME Transaction Type = Purchase Order Approval

Allow Document Withdrawal check box (optional)

Send Withdrawal Notifications to all Approvers check box (optional)

Note: The workflow settings from the document style page override the document type form settings.

AHMED ISMAIL 4


Here is an example of a completed Document Style page.

Note: If you update the Standard Style document style, then Purchase Orders submitted through the PO Entry Form will use the PO AME routing. This is not available for Blanket Releases however. See screen shot below

AHMED ISMAIL 5


AHMED ISMAIL 6


1.3 Approvals Management Engine (AME) Setups

4. Navigate to Approvals Management Engine, Business Analyst responsibility, see image below.

Choose Transaction Type = Purchase Order Approval, see image below and click Setup, see image

below

In the page that appears see the Attributes, Conditions, Action Types, and Approval Groups tabs.

Create the appropriate Conditions and Approval Groups as needed. Also, new Attributes (and

subsequent Conditions) can also be created. See image below for launching point for those pages

AHMED ISMAIL 7


5. Create AME Rule(s) with appropriate Conditions and Actions for those Conditions, see images

below. From AME page click on the Rules tab all the way on the Left, see image below.Use the

Create button to create a new Rule or use Update icon to update existing Rules

b. For a new Rule, enter Rule Name and other appropriate fields, see image below

c. Enter Conditions for this Rule, see image below

AHMED ISMAIL 8


d. Enter the appropriate AME Action that should be applied when the previously entered Conditions are met, see image below

e. Please see image below for completed AME Rule that shows Conditions and Actions for this AME Rule

AHMED ISMAIL 9


6. Submission of Purchase Order through Buyer Work Center using the Document Style from

screen shot above called "AME standard purchase order"

This drop down is on the right side of the page near the top when in the Orders page in the

Buyer Work Center. Choose the document style that was updated to use AME to create and

submit a purchase order that will route using the setups done for the AME Transaction Type =

Purchase Order Approval.

References

NOTE:434143.1 - How To Setup And Use AME For Purchasing

NOTE:1487661.1 - 12.1 AME : Approval, E-Review, E-Sign and Withdrawal Features for Purchase Orders

https://support.oracle.com/epmos/faces/ui/km/DocumentDisplay.jspx?id=434143.1

https://support.oracle.com/epmos/faces/ui/km/DocumentDisplay.jspx?id=1487661.1

AHMED ISMAIL 10


Part 2 –Customer Case Study

2.1 Case Study Overview

Our Customer (XYZ) is using different purchasing document types that are using different approval

hierarchy based on the document type. The different Approval Hierarchies are as follow:

In case of Standard PO, The Administrator Manager should be the final document approval while for

the Contract Release PO (Standard PO referring to a Contract PO), the Finance Manager should be the

final document approval

Standard PO Contract Release PO

AHMED ISMAIL 11


2.2 Creating/ Updating PO Document Styles

To resolve the above approval hierarchies for different purchasing documents, AME should be

activated. Navigate to Purchasing Super User Responsibility Setup Purchasing Document Styles

Figure 1-Document Styles Navigation

Oracle provides two options for document styles, either to update the existing document styles or to

create new document styles. In this white paper, we will be updating the existing document style

Click on the Update Icon to check the document style setup

AHMED ISMAIL 12


Notice that in the Document Controls, AME is activated

Workflow Startup Process: PO AME Approval Top Process

AME Transaction Type: Purchase Order Approval

AHMED ISMAIL 13


2.3 Define Position Hierarchy

Prerequisites:

a. Define Jobs

b. Define Positions

c. Define Employee

d. Define Users

Based on XYZ Customer requirements, two options can be presented:

Option 1: Two position Hierarchies will be created. One for approving Standard Purchase Order

and the other one for approving Contract Release. Option 1 will be the only valid option in

case the same position (HR position) is authorized to create standard Purchase Order and

Contract Release because HR position cannot be mentioned twice in the same Hierarchy

Figure 2-Position Hierarchy for Option 1


AHMED ISMAIL 14


For example: Department Manager 1 is authorized to approve Standard Purchase Order and

Contract Release and as per oracle functionality the one position hierarchy can't be established

as Figure 3 because Department Manager 1 Position can't be entered twice in the same

position hierarchy.

Figure 3-Same Position can't be entered in the same Position Hierarchy


AHMED ISMAIL 15


Option 2: One Position Hierarchies will be created for approving both Standard Purchase Order

and Contract Release. This Option will be valid if each HR position is authorized to approve only

one document type (either Standard or Contract Release)

Figure 4- Position Hierarchy for Option 2


AHMED ISMAIL 16


In Our case, Option 2 will be used and two position hierarchies will be defined:

a. AME- STD PO: To approve Standard Purchase Order

b. AME- CON REL: To approve Contract Release

Figure 5-Case Study Position Hierarchy

Note: Use position Hierarchy screen to define the position hierarchy as per

Figure 5. Make sure that default hierarchy in the document type screen is blank

Dummy Position

(Not Approving)

Finance Manager Admin Manager

Manager 1 Manager 2 Manager 1 Manager 2

AME-CON REL AME-STD PO

AHMED ISMAIL 17


2.4 Select AME Purchase Order Transaction

Figure 6-Purchase Order AME Transaction Type

(N) Approval Management Business Analyst (N) Transaction TypeEnter "Purchase Order Approval"

in Transaction Type field

AHMED ISMAIL 18


2.5 Define Attributes

Figure 7-Attributes Link

(N) Approval Management Business Analyst (N) Transaction TypeEnter "Purchase Order

Approval" in Transaction Type field Click on "Attributes"

In our case to accommodate customer requirements, One attributes will be defined and another

attribute will be updated. The defined attribute is used to identify the type of purchasing document

whether it is Standard or Contract Release Purchase Order. The updated attribute is used to call for the

specific position hierarchy structure based on the purchasing document type

Once you click on Attributes link - Figure 7, the attribute definition screen will be opened as per the

below snapshot. Click (B) create to create a new attribute

AHMED ISMAIL 19


Figure 8-Create Attribue

Once (B) Create is clicked, Create New attribute screen is opened.

The user has to enter the following details in the "Create New Attribute":

a. Name: Name of the Attribute

b. Item Class: To Identify if it's a header or line level attribute

c. Description: Description of the Attribute

d. Data Type: Number, String, Date or Currency

e. Usage Type: Static/ Dynamic. In Case of using SQL to return a value then it should be Dynamic

f. Value: SQL Statement

In our case, one attribute will be defined which is for "Contract Reference" and an attribute will be

"NON_DEFAULT_POSITION_STRUCTURE_ID"

AHMED ISMAIL 20


Contract Reference Attribute:

a. Contract Release exists, it's a Contract Release

b. Contract Release doesn't exists, it's a standard Purchase Order

Contract_Reference attribute details are as follow:

a. Name: CONTRACT_REFERENCE

b. Item Class: Line Item

c. Description: Contract Reference

d. Data Type: String

e. Usage Type: Dynamic

f. Value: select decode(pla.CONTRACT_ID,null,1,2) from po_headers_all pha, PO_LINES_ALL pla

where ame_approval_id = :transactionId

and pha.po_header_id=pla.po_header_id

and pha.org_id=pla.org_id

and rownum=1

g. SQL Explanation: Decode function (expression, search, result, default)

The function is used to search for Contract_ID "expression", in case it is null

"Search", then return "1" else return "2". That means in case of contract

release, this function will return "2" and in case of standard this function will

return "1"

Note: Transaction ID in AME is not equivalent to PO_Header_ID column, transaction ID is

equivalent to AME_Approval_id, which exists as a column in PO_HEADERS_ALL table

AHMED ISMAIL 21


NON_DEFAULT_POSITION_STRUCTURE_ID Attribute

Non-default position structure ID is used to update to call the proper position hierarchy based on the

purchasing document type.

As in our case, two-position hierarchy structure are defined which as:

a. AME- STD PO – POSITION_STRUCTURE_ID: 23127

b. AME- CON REL – POSITION_STRUCTURE_ID: 24127

Figure 9-Update NON-DEFAULT POSITION STRUCTURE ID

AHMED ISMAIL 22


Update NON_DEFUALT_POSITION_STRUCTURE_ID attribute details are as follow:

a. Name: NON_DEFAULT_POSITION_STRUCTURE_ID

b. Item Class: Header

c. Description: Structure ID of the non default HR position hierarchy, if any

d. Data Type: Number

e. Usage Type: Dynamic

f. Value: SELECT decode(DECODE(pla.CONTRACT_ID,NULL,1,2),1,23127,2,24127,null)

FROM po_headers_all pha,

PO_LINES_ALL pla

WHERE ame_approval_id = :transactionId

AND pha.po_header_id =pla.po_header_id

AND pha.org_id =pla.org_id

AND rownum =1

g. SQL Explanation: Decode function (expression, search, result, default)

The Outer decode function is used to select the proper position hierarchy

structure id based of the value of the inner decode function (either it's a

standard purchase order or contract release)

In case of returning the inner decode function a value of "1" (which is standard

purchase order), position structure id should be "23127" (which is AME- STD

PO). Rownum =1 means return only one line of the purchase order

AHMED ISMAIL 23


2.6 Define Condition

Conditions are used to evaluate the value of attributes in a particular transaction. The result of a condition can be either true or false. Conditions are precursors to AME business rules. The result of a condition helps to determine whether a business case (rule) has been satisfied. The conditions within AME can be better thought of as the "IF" part of an approval rule.

Figure 10-Condition Link

(N) Approval Management Business Analyst (N) Transaction TypeEnter "Purchase Order Approval" in Transaction Type field Click on "Conditions". To create a new "Condition" Click (B) Create

Figure 11-Create Conditions

The user has to enter the following details to create "Condition: a. Condition Type: either "Ordinary" or "Exception" b. Attribute: Select the attribute that will be linked to the condition

AHMED ISMAIL 24


c. Other: Based on the data type "String, Number, Date "of the attribute. A field will appear to ask you to enter "String Value, Number, Transaction date" based on the data type of the attribute

Figure 12-Defining Condition Process

In our Case, we are going to define two conditions

a. Contract Reference in (1): Condition for Standard Purchase Order b. Contract Reference in (2): Condition for Contract Purchase Order

Contract_Reference in (1) Condition details are as follow:

a. Condition Type: Ordinary

b. Attribute: CONTRACT_REFERENCE

c. String Value: 1

Note: String Value equals to "1" means no contract ID exist (for the case of Standard Purchase

Order)

AHMED ISMAIL 25


Figure 13-Contract_reference (1) condition

Contract_Reference in (2) Condition details are as follow:

a. Condition Type: Ordinary

b. Attribute: CONTRACT_REFERENCE

c. String Value: 2

Note: String Value equals to "2" means contract ID exist (for the case of Contract Release

Purchase Order)

Figure 14-Contract_reference (2) condition

AHMED ISMAIL 26


2.7 Define Action Types

Actions within the AME application describe the nature of what should be done in AME if a particular

condition and rule is satisfied by a transaction. It is the actions that dictate the approver list that is

generated by AME for the given transaction. Actions not only provide instruction as to who the

approvers are, but how many approvers are required for a given transaction and in what order, should

they be notified.

Action types are groupings of actions that have a similar functionality such as the approval hierarchy

that should be traversed when building an approver list (Our case). An example of this would be actions

that pertain to building an approval based solely on the supervisor tree in HR. The multiple actions for

this action type would all pertain to traversal of the supervisor hierarchy, but would express in terms of

how many levels to traverse. Typically, each action that describes how many levels of a hierarchy to

move up would be defined separate unto itself. All of the defined actions would be grouped into an

action type based on their relationship to the hierarchy being used.

Figure 15-Action Type Link

(N) Approval Management Business Analyst (N) Transaction TypeEnter "Purchase Order Approval" in Transaction Type field Click on "Action Types". To create a new "Actions", select the proper action type, then Click (B) Create.

AHMED ISMAIL 27


Figure 16-Create Action Types

In Our Case and based on the customer requirement, "HR Position" Action type will be selected as per

Figure 16.

Two actions will be created:

a. Requires approval up to HR Positions: 01.Admin Manager - approve standard purchase order

b. Requires approval up to HR Positions: 01.Fin Manager - approve contract release

Figure 17-Requires approval up to HR Positions: 01.Admin Manager

AHMED ISMAIL 28


Figure 18-Requires approval up to HR Positions: 01.Fin Manager

Note: Click the Update icon next to the actions to be able to update the position presented in

Figure 17 and Figure 18. The Position indicates the final approval for each action defined

AHMED ISMAIL 29


2.8 Define Rule(s)

Rules could arguably be considered the essential component when defining business cases for an organization. Whenever a transaction is initiated, the rules are evaluated to determine what approval path the transaction will follow when submitted for approval. Rules are defined by associating the conditions that ultimately determine whether a particular business case has been satisfied. Additionally, rules are associated with action types to determine the approval action and thus the approver list that should be generated for the transaction.

Figure 19-Rule Link

(N) Approval Management Business Analyst (N) Transaction TypeEnter "Purchase Order Approval"

in Transaction Type field Click on "Rule"

AHMED ISMAIL 30


Figure 20-Create Rule

In Our case, two rules will be defined which are:

a. AME Position Hierarchy for Standard PO

b. AME Position Hierarchy for Contract Release PO

Each Rule will be attached to a condition and action type:

a. AME Position Hierarchy for Standard PO

i. Item Class: Line Item

ii. Rule Type: List Creation

iii. Category: Approver

iv. Condition: CONTRACT_REFERENCE in (1)

v. Action Type: HR position- Requires approval up to HR Positions: 01.Admin

Manager

c. AME Position Hierarchy for Contract Release PO

i. Item Class: Line Item

ii. Rule Type: List Creation

iii. Category: Approver

iv. Condition: CONTRACT_REFERENCE in (2)

v. Action Type: Requires approval up to HR Positions: 01.Fin Manager

AHMED ISMAIL 31


Figure 21-AME Position Hierarchy Rule for Standard PO

Figure 22-AME Position Hierarchy Rule for Contract Release

AHMED ISMAIL 32


Part 3 – Test Case

3.1 Given Data for the test Case

Approval Hierarchy Manager-Approver Position

Manager User Name

Employee-Buyer Position

Employee User Name

AME- STD PO 01.Admin Manager ADMIN

MANAGER 01.Manager MANAGER

02.Manager MANAGER2

AME- CON REL 01.Fin Manager FIN

MANAGER 01.Manager MANAGER

02.Manager MANAGER2

3.2 Standard Purchase Order Cycle

1. Login with "Manager" User name

Figure 23-Standard PO/Manager Login

AHMED ISMAIL 33


2. Create Standard Purchase Order

a. (N) Purchasing Super User Purchase OrdersPurchase Orders

b. Create Standard Purchase Order

c. Click (B) Approve

d. Example Standard PO Number: 6037

Figure 24-Create Standard PO

AHMED ISMAIL 34


3. Check Purchase Order Status and Action history

a. (N) Purchasing Super User Responsibility Purchase OrdersPurchase Order

Summary

b. Enter Purchase Order Number, (B) Find

c. Check the Purchase Order Status

d. Check Action History (who is the next approver)-Admin Manager

Figure 25-Check Standard PO Status

AHMED ISMAIL 35


Figure 26-Check Action History

4. Login with Next approver- Admin Manager

Figure 27-Standard PO/Admin (Approver) Login

5. Click on Purchase Order that require your action from the Notification list

a. PO Number: 6037

b. Click (B) Approve

AHMED ISMAIL 36


Figure 28-Approving Standard Purchase Order

6. Login again with "Manager" User and check PO Number 6037

Figure 29-Standard Purchase Order Approved

AHMED ISMAIL 37


3.3 Contract Release Cycle

1. Create/Approver Contract Agreement

a. (N)Purchasing Super User ResponsibilityPurchase OrdersPurchase Orders

b. Create Contract Agreement

c. Click (B) Approve

d. Contract Number:6029

AHMED ISMAIL 38


2. Login with "Manager" User Name

3. Create Contract Release

a. (N)Purchasing Super User ResponsibilityPurchase OrdersPurchase Orders

b. Create Standard Purchase Order-6039

c. Click (T) Reference Document Refer back to the created contract in "Contract" field

d. Click (B) Approve

AHMED ISMAIL 39


Figure 30-Referring Contract Number

4. Check Contract Release Status and Action History

a. (N) Purchasing Super User Responsibility Purchase OrdersPurchase Order

Summary

b. Enter Purchase Order Number, (B) Find

c. Check the Purchase Order Status

d. Check Action History (who is the next approver)-Fin Manager

AHMED ISMAIL 40


5. Login with "FIN Manager" User name

Figure 31-Fin Manager Login

6. Approve Contract Release

a. Click on the Notification for the created Contract Release

b. Click (B) Approve

AHMED ISMAIL 41


Figure 32-Approving Contract Release

7. Login again with "Manager" User and check PO Number 6039 (Contract Release)

Purchase Order Approval Using Approval Management Engine

Documents

Transcript of Purchase Order Approval Using Approval Management Engine