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Topic

    Saravanan Thirunavukkarasu
    AP Invoice approval based on PO amount
    Topic posted March 30, 2017 by Saravanan ThirunavukkarasuGold Medal: 3,500+ Points, last edited January 30, 2019, tagged Financials, Payables 
    150 Views, 5 Comments
    Title:
    AP Invoice approval based on PO amount
    Summary:
    Is it possible to compare invoice amount with PO amount in BPM approval rule with 10% threshold
    Content:

    We have a requirement to auto approve the Invoices by matching with PO header amount with 10% threshold. 

    We don't see PO amount in the attribute list, Is it possible to get PO header amount attribute in AP approval Rule set.

    Regards

    Saravanan

    Comment

     

    • Prithis Das

      Maybe I am oversimplifying it, but can this requirement be handled through setting up an invoice tolerance with Ordered Percentage = 10%? Then all invoices that are within this tolerance could be autoapproved through a simple rule without having to look at the PO header amount attribute.

      Or is there more to it?

    • Alexey Shtrakhov

      Hi,

      I agree with Prithis that first probably to check on Matching tolerance rules? Then you can activate Matching Hold Approval workflow and approve tolerances there.

      Then you would have to add Auto Approval rule for PO related invoices. You can do it at least using advaced rules and checking on cases where exist lines related to PO (po dist is not null)).

      If you still need to do Tolerance approval in AP Invoice Approval Workflow, then yes it is possible, but then you would need to use Advanced rules and do the aggregation on those distr. lines which are related to PO (PO distr. id is not null) and compare it to IPV (invoice price variance) distr. lines. So then you would end up in 2 streams to route invoices to approval if tolerance exceeds or autoapprove the invoice.

      Some special cases may araise if you use manual lines as well on PO related invoices. So then rules will be more complicated. 

       


      With respect
      Alexey

      • Saravanan Thirunavukkarasu

        Thank you Alexey!!. Yes we are using tolerance rules.. As you mentioned we have some manual lines as well on PO related invoices.. Do you have any document or high level approach recommendation for this scenario...

        Regards

        Saravanan  

    • Alexey Shtrakhov

      Hi Saravanan,

      Unfortunately I dont have any ready DEMO document for this.
      What we have done first is a rule matrix where we have all the possible variations and various conditions for those rule. So at least following cases Identified.

      PO Matched no Tolerances PO Matched IPV Tolerance Diff within Limits PO Matched IPV Tolerance Diff beyond Limits PO Matched Man Tolerance Diff within Limits PO Matched Man Tolerance Diff beyond Limits PO Matched IPV & Man Tolerance Diff within Limits PO Matched IPV &  Man Tolerance Diff beyond Limits PO Matched IPV & Man Tolerance Diff Man within Limits, IPV beyond PO Matched IPV & Man Tolerance Diff Man beyond Limits, IPV within
      CASE 1 CASE 2 CASE 3 CASE 2_2 CASE 3_2 CASE 2_3 CASE 3_3 CASE 3_4 CASE 3_5

      Then for each rule we are checking following conditions. 

      Only ITEM Lines No Canceled Lines Exclude NON Rec Tax lines No ZERO Distribution Lines Invoice matched to PO Manual lines exists on invoice IPV Tolerance Diff Exists IPV Tolerance Diff Amount Manual Tolerance Diff Amount

      At the end we end up with this kind of rules (see attached doc for CASE3). There you can see the conditions part, THEN section you have to define based on your purposes. So for each case you will have difference variations in conditions output thus providing you the possibilities to route differently invoice or perhaps as in CASE1 for us, approve it automatically. As you can see in this attached doc, we have a basic condition of 50 EUR and 2% tolerance requirement.

      We also have tolerance check (Hold Approval Workflow activated for neeeded tolerances), but as you also has realized Manual Lines are not handled by Hold Approval Workflow (tolreances).

      Also we needed to send invoice for Cost Center approval after Tolerance has been approved by PO Requestor (Reviewer level). Cost Center unfortunately is not available at the moment in AP Hold Approval workflow (ER is raised), so we ended up with handling tolerances as well in AP invoice approval workflow.

      As I told before as well you have to use Advanced Rules.
      IPV line type = Invoice Price Variance Line type
      We are filtering away Tax lines, Canceled Lines, 0 amount distribution lines
      Manual lines we check if PO Dist ID is NULL and PO matched line is when PO dist ID is not null

      With respect
      Alexey

    • Saravanan Thirunavukkarasu

      Thank you Alexey. We will try this approach and keep you posted..