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    Ashok
    Spend Control enforced through Approvals
    Topic posted October 13, 2018 by AshokBlack Diamond: 60,000+ Points, tagged Approvals, Approvals/Notification, Create Requisition, How-To, Requisition Processing, Tip 
    71 Views, 4 Comments
    Title:
    Spend Control enforced through Approvals
    Summary:
    Spend Control enforced through Approvals
    Content:

    Customers

    You are probably very familiar with this requirement. I have encountered more than a few posts citing the need to ensure that when a requisition is approved, spending is reigned in if the approved amount is likely to exceed the agreement line amount. You do not want a requisition approved backed by an agreement where the amount exceeds the value of the agreement.

    One way to achieve this (aside from budgetary controls enforced on the Requisitioning BU but that meets a different need and purpose too) is to write approval rules that will ensure that any requisition approval that is likely to cause an overdraw on an agreement line is rejected.

    Approval Attribute:

    To achieve said functionality, use the approval attribute 'Agreement Line Amount Exceeded'

    Example Approval Rules:

    Rule #1: If 'Agreement Line Amount Exceeded' = 'No', then <Route Requisition through the Approval process>

    Rule #2: If 'Agreement Line Amount Exceeded' = 'Yes', then <Auto Reject>

    How this works:

    The attribute considers the 'Released' amount against the agreement line and derives the cumulative value to date. This is a sum of all previously approved requisition lines matched to the agreement line. 

    Caveat:

    Keep in mind, this condition only evaluates the amounts from previous Requisition Lines that are successfully converted into a purchase order. In other words, if any are pending in the 'Process Requisitions' queue or awaiting a 'Generate Orders' process, etc. those amounts are excluded.

    Do share with us your experiences in using this attribute for the aforesaid purpose or any related insights.

    Comment

     

    • Ramesh Radhakrishnan

      Good note Ashok. Thanks for posting!!!

    • Sunny Todkari

      Awesome, thanks a lot for posting.

    • Brian Burns

      Has this worked with BPA's and CPA's?

    • Brian Burns

      I had a little trouble getting this to work and I'm not sure if I'm missing a set-up step here.

      I tried the following:

      1. Created the requisition rule using "Agreement Line Amount Exceeded Indicator"

      2. I then created a BPA for 1,000.

      3. I created a release of 1,000 against the BPA and approved the PO. At this point the agreement shows max amount released.

      4. Created another Requisition for 900 which would put the agreement into overbought status.

      5. Submitted requisition.

      6. Requisition was approved.

      Attached are some screenshots of the setup I used.