Spread the Knowledge
Purchase Order Approval
Using Approval Management
Engine (AME)
Prepared by: Ahmed Ismail Abdelsalam
Title: Oracle SCM Consultant
AHMED ISMAIL
Spread the Knowledge
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
II
Spread the Knowledge
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
III
Spread the Knowledge
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
AHMED ISMAIL
Spread the Knowledge
2. Click on Create button to create a new Document Style (can also pick existing Document Style
listed), see image below
AHMED ISMAIL
Spread the Knowledge
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
Spread the Knowledge
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
Spread the Knowledge
AHMED ISMAIL
Spread the Knowledge
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
Spread the Knowledge
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
Spread the Knowledge
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
Spread the Knowledge
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
AHMED ISMAIL
Spread the Knowledge
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:
Contract Release PO
Standard PO
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
AHMED ISMAIL
10
Spread the Knowledge
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
11
Spread the Knowledge
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
12
Spread the Knowledge
2.3
Define Position Hierarchy
Prerequisites:
a.
b.
c.
d.
Define Jobs
Define Positions
Define Employee
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
Contract Release PO
Standard PO
Figure 2-Position Hierarchy for Option 1
AHMED ISMAIL
13
Spread the Knowledge
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.
Contract Release PO
Standard PO
Figure 3-Same Position can't be entered in the same Position Hierarchy
AHMED ISMAIL
14
Spread the Knowledge
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)
Contract Release PO
Standard PO
Figure 4- Position Hierarchy for Option 2
AHMED ISMAIL
15
Spread the Knowledge
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
Dummy Position
(Not Approving)
Finance Manager
Manager 1
Admin Manager
Manager 2
AME-CON REL
Manager 1
Manager 2
AME-STD PO
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
AHMED ISMAIL
16
Spread the Knowledge
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
17
Spread the Knowledge
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
18
Spread the Knowledge
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
19
Spread the Knowledge
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.
b.
c.
d.
e.
f.
Name: CONTRACT_REFERENCE
Item Class: Line Item
Description: Contract Reference
Data Type: String
Usage Type: Dynamic
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
20
Spread the Knowledge
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
21
Spread the Knowledge
Update NON_DEFUALT_POSITION_STRUCTURE_ID attribute details are as follow:
a.
b.
c.
d.
e.
f.
Name: NON_DEFAULT_POSITION_STRUCTURE_ID
Item Class: Header
Description: Structure ID of the non default HR position hierarchy, if any
Data Type: Number
Usage Type: Dynamic
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
22
Spread the Knowledge
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
23
Spread the Knowledge
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
24
Spread the Knowledge
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
25
Spread the Knowledge
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
26
Spread the Knowledge
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
27
Spread the Knowledge
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
28
Spread the Knowledge
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
29
Spread the Knowledge
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
30
Spread the Knowledge
Figure 21-AME Position Hierarchy Rule for Standard PO
Figure 22-AME Position Hierarchy Rule for Contract Release
AHMED ISMAIL
31
Spread the Knowledge
Part 3 Test Case
3.1
Given Data for the test Case
Approval Hierarchy Manager-Approver
Position
AME- STD PO
01.Admin Manager
AME- CON REL
01.Fin Manager
3.2
Manager
User Name
ADMIN
MANAGER
FIN
MANAGER
Employee-Buyer
Position
01.Manager
02.Manager
01.Manager
02.Manager
Employee User
Name
MANAGER
MANAGER2
MANAGER
MANAGER2
Standard Purchase Order Cycle
1. Login with "Manager" User name
Figure 23-Standard PO/Manager Login
AHMED ISMAIL
32
Spread the Knowledge
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
33
Spread the Knowledge
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
34
Spread the Knowledge
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
35
Spread the Knowledge
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
36
Spread the Knowledge
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
37
Spread the Knowledge
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
38
Spread the Knowledge
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
39
Spread the Knowledge
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
40
Spread the Knowledge
Figure 32-Approving Contract Release
7. Login again with "Manager" User and check PO Number 6039 (Contract Release)
AHMED ISMAIL
41
