2063785 - How to Set Up Approval Process for Payments

You wish to set up an approval process for payments based on a given threshold and user.

SAP Business ByDesign.

You can define threshold amounts for payment approvals depending on company, payment method, and user. No task will be created if the amount of the outgoing/incoming payment is below the specified threshold.

You can define this threshold for both incoming and outgoing payments following below steps.

1. Go to the Business Configuration work center.
2. Go to the Overview view.
3. Open the Business Task Management for Payment and Liquidity Management activity.
4. Click either on Payment approvals for outgoing payments or Payment approvals for incoming payments.

On the screen that opens, you can set up the rules to trigger the approval task. If you want the approval process to be executed when a specific user initiates the payment, enter the name of the user in the User ID column.

After maintaining a threshold amount to trigger the approval process, you can define who is the approver, based on work distribution, as follows.

1. Go to the Application and User Management work center.
2. Go to the  Employee Work Distribution view.
3. In the Finance and Administration business area, define the approvers within Approver for Liquidity Management.

The approval task is then sent to all approvers that you've maintained. If the task is completed by one of them, the payment gets approved. If there is no approver maintained, the task is sent to all authorized managers.

 Note that although there is an approval process set, the scenario may vary depending upon your user's access rights.

 In case there is no approver defined under the employee work distribution for liquidity management and:

• You do not have access to the approvals view - MMA_CASHLIQUIDITYMANAGEMENT - in Managing My Area, the payment, if above the threshold, goes to approval.
• You have access to MMA_CASHLIQUIDITYMANAGEMENT, the payment is posted with no approval task triggered. 

In case there is an approver defined under the employee work distribution for liquidity management:

• The approval task is triggered to the approver regardless of your access rights.

Note that the above setup concerns tasks of type 'Approve Manual Payment <payment ID> - <business partner ID> - <amount>'. Payment approval tasks can also be of type 'Approve Supplier Payment <payment ID> - <company ID> - <suplier ID> - <amount>' and 'Approve Customer Payment <payment ID> - <company ID> - <suplier ID> - <amount>'.

For the Approve Supplier Payment type, MMA_PAYABLES access right is required and the approver is defined under employee work distribution as Approver for Payables.
For the Approve Customer Payment type, MMA_RECEIVABLES access right is required and the approver is defined under employee work distribution as Approver for Receivables.

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