SAP Knowledge Base Article - Public

1936870 - Approval Rules in Supplier Invoicing

Symptom

Overview

Before defining an approval process for supplier invoice, it is important to understand the various approval rules available for a supplier invoice approval.

You can define approval limits for an approver of a supplier invoice, in the Application and User Management work center, Task Distribution header, Employee Work Distribution view, Purchasing Approval Value Limit Work Category.

 Prerequisites

  • You have assigned a manager for a cost center, a reporting line unit, a project or a project task
  • You have setup value limits for organization unit managers.

 Approval Rules

The supplier invoice approval supports following rules.

  • All Cost Center Approvers by Value Limit
  • Approval by Cost Assignment
  • Approval by Cost Center Manager based on Project Task
  • Approval by Cost Center Manager by Value Limit
  • Approval by Line Manager of Recipient
  • Approval by Recipient
  • Approval by Reporting Line Unit Manager
  • Approval by Reporting Line Unit Manager by Value Limit
  • Approval by Reporting Line Unit Managers of Recipients by Value Limit
  • Approval by Reporting Line Unit Managers up to Value Limit
  • Direct Approvers
  • Manager of Manager
  • Supplier Invoice Approver

 The rules are explained below in detail:

 All Cost Center Approvers by Value Limit

The All Cost Center Approvers by Value Limit rule enables you to send an approval task based on the approval limit to the cost center manager. If the gross amount of the supplier invoice exceeds the manager’s approval limit, then the next cost center in the hierarchy is found and its manager is also assigned an approval task. The process is repeated until the cost center that is at the top in the hierarchy is found. Once this is done, the system assigns the approval task to the manager of that cost center as well. Hence, all the managers in the hierarchy will get an approval task. We recommend that all managers must approve. In case no cost center is assigned to the supplier invoice or the approval limit does not match, the reporting line unit manager is used as fallback for the approval.

 Approval by Cost Assignment

The Approval by Cost Assignment rule enables you to send an approval task based on the cost assignment of a supplier invoice. Based on the cost assignment the approval task is either sent to the cost center manager, project manager or the reporting line unit manager of the buyer responsible for approval.

 Approval by Cost Center Manager based on Project Task

The Approval by Cost Center Manager based on Project Task rule enables you to send an approval task based on the cost assignment in the supplier invoice to the cost center manager of the project task, the project task manager or the project manager.

 Approval by Cost Center Manager by Value Limit

The Approval by Cost Center Manager by Value Limit rule enables you to send an approval task based on the approval limit. An approval task is sent to the cost center manager, provided the gross amount of the supplier invoice is within the limits of the approving manager. If the gross amount of the supplier invoice exceeds the approval limit of the approver, the system automatically determines the next eligible approver from the organizational management hierarchy. The process is repeated until the cost center at the top of the hierarchy is found and the system assigns the approval task to the manager of that cost center. In case no cost center is assigned to the supplier invoice or the approval limit does not match, the reporting line unit manager of the buyer responsible is used as fallback for the approval.

 Approval by Line Manager of Recipient

The Approval by Line Manager of Recipient rule enables you to send an approval task to the reporting line unit manager of the employee who received the product as assigned in the supplier invoice.

 Approval by Recipient

The Approval by Recipient rule enables you to send an approval task to the employees who received the products as assigned in the supplier invoice.

 Approval by Reporting Line Unit Manager

The Approval by Reporting Line Unit Manager rule enables you to send an approval task to the reporting line unit manager of the buyer responsible as assigned in the supplier invoice.

 Approval by Reporting Line Unit Manager by Value Limit

The Approval by Reporting Line Unit Manager by Value Limit rule enables you to send an approval task to the reporting line unit manager of the buyer responsible as assigned in the supplier invoice. If the gross amount of the supplier invoice exceeds the manager’s approval limit, then the next reporting line unit in the hierarchy is found and its manager gets an approval task. The process is repeated until the reporting line unit that is at the top in the hierarchy is found. Once this is done, the system assigns the approval task to the manager of that reporting line unit.

 Approval by Reporting Line Unit Managers of Recipients by Value Limit

The Approval by Reporting Line Unit Managers of Recipients by Value Limit rule enables you to send an approval task to the reporting line unit manager of the recipients assigned in the supplier invoice. If the gross amount of the supplier invoice exceeds the manager’s approval limit, then the next reporting line unit in the hierarchy is found and its manager gets an approval task. The process is repeated until the reporting line unit that is at the top in the hierarchy is found. Once this is done, the system assigns the approval task to the manger of that reporting line unit. Hence, all the managers in the hierarchy will get an approval task.

 Approval by Reporting Line Unit Managers up to Value Limit

The Approval by Reporting Line Unit Managers up to Value Limit rule enables you to send an approval task to the reporting line unit manager of the buyer responsible assigned in the supplier invoice. If the gross amount of the supplier invoice exceeds the manager’s approval limit, then the higher level managers are determined. We recommend that all managers must approve.

 Direct Approvers

The Direct Approvers rule enables you to send an approval task to an employee or employees mentioned in the Approval Process Definition.

 Manager of Manager

The Manager of Manager rule enables you to send an approval task to the next level reporting line unit manager of the buyer responsible assigned in the supplier invoice.

 Supplier Invoice Approver

The Supplier Invoice Approver rule enables you to send an approval task to the manager of the invoicing unit assigned in the supplier invoice. In case no approver is able to determine, the reporting line manager of the buyer responsible is used as fallback for the approval.

Keywords

KBA , LOD-CRM , Cloud for Customer , How To

Product

SAP BUSINESS BYDESIGN 1705 ; SAP BUSINESS BYDESIGN 1708 ; SAP Business ByDesign 1711