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Purpose
This article describes the basics of how Approval Hierarchies work in Oracle Purchasing. It is intended
to help users to setup hierarchies for the purpose of routing articles to the proper authority for
document approval.
A Troubleshooting Guide is provided to assist in debugging a specific issue. When possible, diagnostic
tools are included in the document to assist in troubleshooting.
Troubleshooting Details
The first two methods Approval and Employee/Supervisor pertain to all Purchasing document types,
including requisitions. This document will not include information on the 3rd method, Approval
Management Engine (AME) for requisition approval.
Additionally this note will only review approvals for single business groups. Refer to Note
726618.1 ‘Unable to Allow Approver to be seen Across Business Groups’ for information about
approvals across business groups.
Initial Setup
The Human Resources zone on the Financial Options form has an option called Use Approval
Hierarchies. This option determines which type of hierarchy is used for the approval process. When
checked, the Approval Hierarchy is used and when unchecked the Employee/Supervisor relationship is
used.
Go to the Financial Options form
Use the Job window to create each of the job titles in your organization (for example: Buyer, Supply
Base Engineer). If you are not using positions, you assign one or more employees to each job. If you
are using positions, you assign one or more positions to each job, and later assign one or more
employees to each position.
Navigation if using shared HR: Purchasing Responsibility -> Setup -> Personnel -> Jobs
If using a full install of HR: Human Resources Responsibility -> Work Structures -> Jobs ->
Description
Note: You assign authorization rules to jobs or positions based on your approval method. If you are
using employee supervisor method the authorization rules are assigned to the jobs.
Use the Position window to create each of the positions in your organization. This step is required if
you plan to use either security or position approval hierarchies.
Navigation if using shared HR: Purchasing Responsibility -> Setup -> Personnel -> Positions
If using a full install of HR: Human Resources Responsibility -> Work Structures -> Positions ->
Description
Note: Refer to Representing Jobs and Positions, Oracle HRMS Enterprise and Workforce Management
Guide for more information about setting up jobs or positions.
Use the Position Hierarchy window to build and administer your position hierarchies. There are two
distinct uses for position hierarchies in Purchasing: Document approval routing and
Document security control. You can use a single position hierarchy for both purposes.
Navigation if using shared HR: Purchasing Responsibility -> Setup -> Personnel -> Position Hierarchy.
If using a full install of HR: Human Resources Responsibility -> Work Structures -> Position Hierarchy
Note: Refer to Representing Jobs and Positions, Oracle HRMS Enterprise and Workforce Management
Guide.
- Security Hierarchies
Security Hierarchy is used to determine who can access the purchasing document. If you want to
specify a Security Level of Hierarchy for any of your document types, you must first define all
positions.
Important: Even if you are using jobs (i.e. Employee/Supervisor relationship) to route documents, you
must define positions before you can enable this Security Level)
The Security Hierarchy is selected from a list of values in the Control zone of the Purchasing Options
form (Navigation: Purchasing Responsibility -> Setup -> Organizations -> Purchasing Options). Here,
select a Security Hierarchy, which is a position hierarchy from the Position Hierarchy window. When
the Security Level is set to Hierarchy for a document in the Document Controls window, this position
hierarchy governs access security for that document.
The Security Hierarchy field will only be enabled when the Hierarchy option is selected for the Security
Level on the Document Types form.
Employee/Supervisor Relationships
This type of hierarchy is defined by the employee/supervisor relationship. The supervisor of an
employee is defined on the Assignment region of the Employee form. If the purchase order entered by
the employee exceeds the approval limits, the purchase order is forwarded onto the employees’
supervisor, as defined on the Employee form.
To implement this form of approval routing, you need only to define jobs. The job will then serve as
the tie to the approval group, and based on the approval limits from the Approval Group, the
document will either be approved or forwarded to the Employees’ Supervisor. If no supervisor is able
to be located and the job assigned to the employee does not have approval authority, then the
approving employee must enter a forward-to person, or the Document will be returned to an
Incomplete status and a notification will be sent to the approving employee, stating – ‘No Approver
Found’.
For this example Senior Manager is the manager of Junior Buyer and Group Manager is the manager
of Senior Manager.
a. Junior Buyer raises a purchase order that has a total value of 150.00.
c. As Junior Buyer does not have a high enough approval limits, the purchase order is automatically
forwarded to Senior Manager (because Senior Manager is Junior Buyer’s supervisor as defined on the
Employee form)
d. Senior Manager responds to the approval notification for this purchase order.
e. If Senior Manager selects “Approve”, the purchase order is automatically forwarded on to the
Group.Manager as Senior Manager does not have a high enough approval limit.
f. The purchase order appears in the notification screen for Group Manager where it can be approved
or rejected.
a. Junior Buyer raises another purchase order with a total value of 150.00.
c. As neither Junior Buyer or Senior Manager have a high enough approval limit, the purchase order is
sent directly to Group Manager because Group Manager is Senior Manager’s supervisor as defined on
the Employee form and Senior Manager is Junior Buyer’s supervisor.
Position Hierarchies
Position Hierarchies are hierarchies that have a position relationship. Purchasing utilizes positions as a
roadmap to determine how and where documents will be routed once the approval process has been
initiated. It is first necessary to have created all positions that are going to be used in the system.
Once all positions have been created, it is necessary to build the position hierarchy.
Each position has approval limits, so when a purchase order exceeds the limits of the position, the
purchase order is forwarded onto the next position in the Hierarchy.
The hierarchy for positions is defined on the Position Hierarchy form. Purchasing does not check for
the primary checkbox on Position Hierarchy form. When this setup is complete or is changed, the Fill
Employee Hierarchy concurrent program must be run for the new hierarchy to come into effect. You
must set up Positions if you plan to use either security or approval hierarchies.
For the following two examples we will use the following Approval Hierarchy. The name of the
hierarchy is “Buyer Approval Hierarchy”.
a. Junior Buyer raises a purchase order that has a total value of 150.00.
c. As Junior Buyer does not have a high enough approval limit, the purchase order is automatically
d. Senior Buyer responds to the approval notification for the purchase order.
e. If Senior Buyer selects “Approve”, the purchase order is automatically forwarded to Chief Buyer
because Senior Buyer does not have a high enough approval limit.
f. The purchase order notification appears in the notification screen for Chief Buyer where it can be
approved or rejected.
On the Document Type form The Forward Method is changed to Direct and the Default Hierarchy
remains unchanged.
a. Junior Buyer raises another purchase order with a total value of 150.00.
c. As neither Junior Buyer nor Senior Buyer has a high enough approval limit, the purchase order is
sent directly to Chief Buyer for approval.
Approval Setup
Document Types
Forwarding Method:
The forwarding method is set under document types. This field has two options that apply regardless
as to whether you use an Approval Hierarchy or an Employee/Supervisor relationship.
Direct: the document will pass to the next position or supervisor in the hierarchy who has enough
authority to approve the document.
Hierarchy: the document will pass to the next person in the hierarchy regardless as to whether that
position or supervisor has enough approval authority to approve the document.
Navigation: Purchasing Responsibility -> Setup -> Purchasing -> Document Types
a. From the list of values choose the purchasing document you want to assign the forwarding method
to.
b. In the field ‘Forward Method’ choose Hierarchy or Direct and save your work.
Default Hierarchy
In the screenshot above we additionally see the ‘Default Hierarchy’ set to Materials. When choosing
the action of ‘Approve’ for a document, if a Forward-To person is not defined and the person taking
action does not have sufficient approval authority, the default hierarchy is first searched by the
employee attempting the approval.
The Default Hierarchy option will only appear on the Document Type form if the option Use Approval
Hierarchies is selected as shown in the section Enable the Hierarchy Method above. The Default
Hierarchy field has a list of values. This list is derived from the hierarchies created using the Position
Hierarchy form which will be discussed under the Position Hierarchies section of this document.
The Default Hierarchy is the one that will be used by the approval process unless the person who
submits the document for approval changes it in the Approval Modal form. But, the hierarchy can only
be changed on the Approval Modal form if the attribute ‘Can Change Approval Hierarchy’ (additionally
shown in the screenshot above) is checked on the Document Type form.
Note: it is imperative that the low-end users (those with little approval authority) be present in this
default hierarchy so the next Forward-To approver can be found.
User Setup
Regardless if Approval (Position) or Employee/Supervisor hierarchies are used, there are some basic
setups required for the approvers:
Navigation if HR is fully installed: HR Responsibility > People > Enter and Maintain.
Navigation if HR is shared: Purchasing Responsibility > Setup > Personnel > Employees
a. Either query the employee by name or if the employee record has not been entered, enter the
required detail.
b. If e-mail notifications are to be sent then enter the users email address in the Email field in the
Office Details tab.
Note: For information on creating jobs or positions see the Oracle Purchasing User’s Guide, section
‘Define Human Resource key Flexfields (Required)’.
e. If Employee/Supervisor is used the Supervisor must be assigned (unless this approver is the last
a. If the user has already been entered then query the user in the User Name field. If the user has not
been entered fill in the required information and link the human resources record in the Person field.
b. If e-mail notifications are to be sent ensure that the e-mail field is populated. This information will
default from the e-mail address entered in the human resources record above.
c. Add the responsibilities needed for the user. Save your work.
a. Enter the Buyer name and Effective From date. Category and Ship-To are not required.
b. Save your work.
Note: If the user is an off-line approver it is not required to enter the user as a Buyer here.
Step 4: Run the Fill Employee Hierarchy process if using Approval Hierarchies:
b. Submit the request and make sure it completes successfully from View -> Requests.
Note: It is required to run this report if creating or making changes to the Position hierarchy. It is not
required to run this report if using Employee/Supervisor hierarchy.
Approval Assignment:
Once the Approver’s position or job is assigned in the HR record it is necessary to assign the Approval
Group for the document type.
Navigation: Purchasing Responsibility -> Setup -> Approvals -> Approval Assignments
a. From the list of values choose the position (Approval Hierarchies) or job (Employee/Supervisor).
There are 6 document types which can be assigned to approval groups, if necessary. It is also possible
to assign multiple approval groups for document types if different approval limits are needed. In this
example the same Approval Group is assigned to all document types.
Approval Groups:
Navigation: Purchasing Responsibility -> Setup -> Approvals -> Approval Groups
a. From the list of values choose the Approval Group seen in the previous Approval Assignment form.
b. Assign at least one Document Total and one Account Range. Save your work.
In the screenshot below we see there is an unlimited Amount Limit and account range for approval.
For more information on assigning approval rules see Note 1107338.1 ‘How to Verify that Document
Charge Account and Approval Groups Setup is Valid in Order to Prevent no Approver Found’.
What articles, white papers, or manuals should I read for more information on Approval
Hierarchies in Oracle Purchasing?
Note 293315.1 11.5.10 FAQ for Approvals Management (AME) Integration For iProcurement and
Purchasing
Note 396808.1 Oracle Approvals Management Documentation Resources, Release 12
What are the Metalink keywords I should use when searching for content on Approval
Hierarchies in Oracle Purchasing?