Requisition and Purchase Order Approvals

You use requisition and/or purchase order approvals to approve requisitions, requisition items, purchase orders and/or purchase order items based on amount and approval level(s).

You can assign approvals to roles or users. You should assign approvals to users if you use automatic email notifications as part of the approval process. You should assign approvals to roles to maintain auditable data of when a requisition and/or purchase order approval is temporarily assigned. For example, if an approver is out of the office for a period of time.  

To use approvals:

• Configuration Options
• Review Approval Levels
• Assign Approvals to Roles/Users
• Approve a Requisition or Purchase Order
• Lower a Requisition or Purchase Order Approval
• Hold or Reject a Requisition or Purchase Order
• Mobile Approvals
• Approval Security

Configuration Options

There are several configuration options available related to purchase order approvals. You can configure them from the Purchasing Configuration screen from the Main Menu.

• Email Section
  • Email Purchase Order Approver Notification - If checked, an email is sent to the next user in the approval process for a purchase order. The next user is determined by the purchase order approvals configured using the defined levels and amounts. The user at the lowest level and amount above the purchase order's approval level is notified. The Access to Requisitions/Purchase Orders and Access to Requisitions/Purchase Orders by Department access privileges are also used to limit the possible recipients.
  • Email Requisition Approver Notification - If checked, an email is sent to the next user in the approval process for a requisition. The next user is determined by the requisition approvals configured using the defined levels and amounts. The user at the lowest level and amount above the requisition's approval level is notified. The Access to Requisitions/Purchase Orders and Access to Requisitions/Purchase Orders by Department access privileges are also used to limit the possible recipients.
  • Email Purchase Order Notification - If checked:
    • When a purchase order reaches final approval (level 9), an email is sent to the buyer's email address and the email address for the user who entered the purchase order with the email address of the personal account for the user approving the purchase order carbon copied. 
    • When a purchase order is placed on hold or rejected, an email is sent to the requester's email address.
  • Email Requisition Notification - If checked:
    • When a requisition reaches final approval (level 9), an email is sent to the buyer's email address and the email address for the user who entered the requisition with the email address of the personal account for the user approving the requisition carbon copied. 
    • When a requisition is placed on hold or rejected, an email is sent to the requester's email address.
• Pricing Section
  • Price-Checking and Percent Variance - If checked, the purchasing approval process uses the value entered into the Percent Variance field to determine if the user can approve the purchase order. If the variance, as determined by comparing the current purchase price to the last purchase price (the last price for the item where the purchase order is received), is greater than the percent variance specified, the user receives a message warning him/her that the variance is too large. This process does not take into consideration purchase orders that are issued but not received.
• Distribution Section
  • Require GL Distribution on Purchase Order - If checked, distribution is required for the purchase order.
  • Require GL Distribution on Requisition - If checked, distribution is required for the requisition.
  • Budget Controls - If checked, budget controls are used when approving requisitions and purchase orders. The user approving the requisition or purchase order receives a warning if the amount of the requisition or purchase order plus the other unpaid requisition or purchase order lines plus previously incurred expenses exceeds the year-to-date budget amount for the fiscal period of the estimated receipt date.

There are several security options available related to purchase order approvals. You can configure them from the Access Privileges screen from the Main Menu.

• Allow Approval of PO After Exceeding Budget Amount - This access privileges controls which users can approve a purchase order when the amount of the purchase order exceeds the amount budgeted to the general ledger account to which the purchase order distribution is assigned. Any roles/users not assigned to the privilege is unable to approve a purchase order when the purchase order amount plus other unpaid purchase order lines plus previously incurred expenses exceeds the year-to-date budget amount for the fiscal period of the estimated receipt date. This security is only checked when the Budget Controls configuration option is checked on the Purchasing Configuration screen. If no roles/users are assigned this privilege, it is considered inactive and all users can approve purchase orders which exceed the budgeted amount.
• Allow Override of Purchase Order Variances - This access privilege controls which users can approve a purchase order that exceeds the variance entered into the Percent Variance field on the Purchasing Configuration screen. Any roles/users assigned to the privilege can exceed the specified variance while those not assigned to the privilege cannot exceed the variance. If no roles/users are assigned to the privilege, it is considered inactive and all users can exceed the variance.

• Allow Access to Purchasing/Vouchers by Department - This access privilege controls who can approve requisitions and purchase orders by department. Roles and/or users assigned to this privilege can approve requisitions and purchase orders with departments they are assigned to view using the Assign Details option. If no roles/users are assigned to this access privilege, it is considered inactive and all roles/users have access to approve all departments' requisitions and purchase orders. If a user is assigned (activating the access privilege), all unassigned roles/users are unable to approve any departments' requisitions and purchase orders.

• Allow Access to GL Accounts by GL Security - This access privilege is used to control which users can approve requisition/purchase orders based on their general ledger account access. Roles/users can only approve requisitions/purchase orders that use GL accounts with the GL Security Codes they have access to. If no roles/users are assigned to the access privilege, it is considered inactive and all users have access to all GL accounts regardless of General Ledger Account Security. 

Review Approval Levels

You can have up to nine (9) approval levels. By default, they are named Approval Level 1, Approval Level 2, etc. but you can update the name of the approval levels to better reflect your workflow. For example, Team Lead Approval, Department Manager Approval, Business Unit Manager Approval, etc.

It is not always necessary to use all nine approval levels. You can make any approval levels you do not need inactive. However, do not make level nine (9) inactive as it is required to issue a purchase order. To update the description and/or inactive any approval levels:

1. Click the Requisition Approval Levels or Purchase Order Approval Levels link from the Main Menu. The Requisition Approval Levels or Purchase Order Approval Levels screen opens.
2. Uncheck the Active check box for any approval levels you do not need.
3. Click into the Description field of the approval level description you want to change. 
4. Enter the new description into the field.
5. Click the Save button.

Assign Approvals to Roles/Users

You use approval levels and a maximum amount to determine which roles/users can approve a requisition and/or purchase order. You can use these values to create approval workflows.

Best practice is to use the level 1 approval level to confirm a requisition or purchase order is ready for approval. This ensures the requisition/purchase order is entered completely before beginning the approval process. If a role/user is configured with a Level 1 in the Level From drop-down and a requisition or purchase order is at an Entry status (and, therefore, has not entered into the approval process), the role/user cannot approve the requisition or purchase order until it reaches a Level 1 approval level and is at an Awaiting Approval status.

If a role/user can approve any requisition or purchase order regardless of the minimum status, leave the Level From value blank.

You can also set up a single user for different approvals based on the approval level and maximum amount. See below for an example:

• A user can approve up to the final approval level for any purchase order below $5,000.00. To configure this, select Level 9 in the Level To drop-down and enter 5000.00 in the Maximum Amount field.
• The same user can partially approve a purchase order up to $20,000.00. To configure this, create another approval and select the lower approval level the user can approve (any level 1-8) to from the Level To drop-down and enter 20000.00 into the Maximum Amount field. 
• The above configuration allows the user to approve purchase orders less than $5000 but can only approve purchase orders over $5000 up to the configured approval level.

To assign requisition or purchase approvals to a role and/or user:

1. Click the Requisition Approvals or Purchase Order Approvals link from the Main Menu. The Requisition Approvals or Purchase Order Approvals screen opens.
2. Click the Add button. The Add User Approval screen opens.
3. Select the user or role for the approval from the User screen.
4. Select the lowest approval level the role/user can approve from the Level From drop-down. Only active approval levels are available.
5. Select the highest approval level the role/user can approve from the Level To drop-down. Only active approval levels are available.
6. Enter the maximum amount the role/user is allowed to approve into the Maximum Amount field. Enter 0.00 for an unlimited amount.
7. Click OK.

Approve a Requisition or Purchase Order

When requisitions and purchase orders are added, they are added at an Entry status. Once the requisition or purchase order enters into the approval process, it updates to an Awaiting Approval status. When it reaches the final approval level (level 9), the status updates to Open and it is ready for issuing.  

To approve a requisition or purchase order:

1. Click the Requisitions or Purchase Orders link from the Main Menu. The Requisitions or Purchase Orders screen opens.
2. Select the requisition(s) or purchase order(s) to approve. Use Ctrl+Click or Shift+Click to select multiple requisitions or purchase orders.
3. Right-click and select Review -> Approve. The Review Requisition or Review Purchase Order screen opens.
4. Select the level you are approving the requisition or purchase order to from the Level drop-down. Only the levels you have access to approve are available for selection.
5. Enter a note for the approval into the note field if applicable.
6. Click OK. If there are multiple requisitions or purchase orders you are approving, the Review Requisition screen opens for the next requisition or purchase order. If you do not want to approve the requisition or purchase order, click the Skip button. When all approvals are complete, the screen closes.

You can also approve individual requisition items or purchase order items:

1. Click the Requisitions or Purchase Orders link from the Main Menu. The Requisitions or Purchase Orders screen opens.
2. Select the requisition or purchase order with the item(s) to approve. 
3. Right-click and select Edit. The Edit Requisition or Edit Purchase Order screen opens.
4. Select the Requisition Items or Purchase Order Items tab.
5. Select the item(s) to approve. Use Ctrl+Click or Shift+Click to select multiple items.
6. Right-click and select Review -> Approve. The Review Requisition Item or Review Purchase Order Item screen opens.
7. Select the level you are approving the requisition item or purchase order item to from the Level drop-down. Only the levels you have access to approve are available for selection.
8. Enter a note for the approval into the note field if applicable.
9. Click OK. If there are multiple items you are approving, the Review Requisition screen opens for the next item. If you do not want to approve the item, click the Skip button. When all approvals are complete, the screen closes.

Lower a Requisition or Purchase Order Approval

You can lower the approval level on a requisition or purchase order if you have access to the current approval level and amount of the requisition or purchase order. To lower the approval level on a requisition or purchase order: 

1. 1. Click the Requisitions or Purchase Orders link from the Main Menu. The Requisitions or Purchase Orders screen opens.
   2. Select the requisition(s) or purchase order(s) to lower. Use Ctrl+Click or Shift+Click to select multiple requisitions or purchase orders.
   3. Right-click and select Review -> Lower. The Review Requisition or Review Purchase Order screen opens.
   4. Select the new level you are approving the requisition or purchase order to from the Level drop-down. Only the levels you have access to and are below the current approval level are available for selection.
   5. Enter a note with the reason for lowering the approval level into the Note field.
   6. Click OK. If there are multiple requisitions or purchase orders you are lowering, the Review Requisition screen opens for the next requisition or purchase order. If you do not want to lower the requisition or purchase order, click the Skip button. When you have lowered all the approval levels, the screen closes.

You can also lower the approval level on individual requisition items or purchase order items:

1. Click the Requisitions or Purchase Orders link from the Main Menu. The Requisitions or Purchase Orders screen opens.
2. Select the requisition or purchase order with the item(s) to lower. 
3. Right-click and select Edit. The Edit Requisition or Edit Purchase Order screen opens.
4. Select the Requisition Items or Purchase Order Items tab.
5. Select the item(s) to lower. Use Ctrl+Click or Shift+Click to select multiple items.
6. Right-click and select Review -> Lower. The Review Requisition Item or Review Purchase Order Item screen opens.
7. Select the new level are approving the requisition item or purchase order item to from the Level drop-down. Only the levels you have access to and are below the current approval level are available for selection.
8. Enter a note with the reason for lowering the approval level into the Note field.
9. Click OK. If there are multiple items you are lowering, the Review Requisition screen opens for the next item. If you do not want to lower the item, click the Skip button. When you have lowered all the approval levels, the screen closes.

Hold or Reject a Requisition or Purchase Order

You can place requisitions or purchase orders on hold or reject them. When you place a requisition or purchase order on hold, you can only edit certain information. You can only change the status for held requisitions or purchase orders through the approval process.

When you reject a requisition or purchase order, you are denying the approval. You can only change the status for rejected requisitions or purchase orders through the approval process.  

To place a requisition or purchase order on hold:

1. Click the Requisitions or Purchase Orders link from the Main Menu. The Requisitions or Purchase Orders screen opens.
2. Select the requisition(s) or purchase order(s) to place on hold. Use Ctrl+Click or Shift+Click to select multiple requisitions or purchase orders.
3. Right-click and select Review -> Place On Hold. The Review Requisition or Review Purchase Order screen opens.
4. Enter a note with the reason for placing the requisition or purchase order on hold into the Note field if applicable. 
5. Click OK. If there are multiple requisitions or purchase orders you are placing on hold, the Review Requisition screen opens for the next requisition or purchase order. If you do not want to place the requisition or purchase order on hold, click the Skip button. When you have placed all the requisitions or purchase orders on hold, the screen closes.

You can also place individual requisition items or purchase order items on hold:

1. Click the Requisitions or Purchase Orders link from the Main Menu. The Requisitions or Purchase Orders screen opens.
2. Select the requisition or purchase order with the item(s) to place on hold. 
3. Right-click and select Edit. The Edit Requisition or Edit Purchase Order screen opens.
4. Select the Requisition Items or Purchase Order Items tab.
5. Select the item(s) to place on hold. Use Ctrl+Click or Shift+Click to select multiple items.
6. Right-click and select Review -> Place on Hold. The Review Requisition Item or Review Purchase Order Item screen opens.
7. Enter a note with the reason for placing the item on hold into the Note field if applicable. 
8. Click OK. If there are multiple items you are placing on hold, the Review Requisition screen opens for the next item. If you do not want to place the item on hold, click the Skip button. When you have placed all items on hold, the screen closes.

To reject a requisition or purchase order:

1. Click the Requisitions or Purchase Orders link from the Main Menu. The Requisitions or Purchase Orders screen opens.
2. Select the requisition(s) or purchase order(s) to reject. Use Ctrl+Click or Shift+Click to select multiple requisitions or purchase orders.
3. Right-click and select Review -> Reject. The Review Requisition or Review Purchase Order screen opens.
4. Enter a note with the reason for rejecting the requisition or purchase order on hold into the Note field. 
5. Click OK. If there are multiple requisitions or purchase orders you are rejecting the Review Requisition screen opens for the next requisition or purchase order. If you do not want to reject the requisition or purchase order, click the Skip button. When you have rejected all the requisitions or purchase orders, the screen closes.

You can also reject individual requisition items or purchase order items:

1. Click the Requisitions or Purchase Orders link from the Main Menu. The Requisitions or Purchase Orders screen opens.
2. Select the requisition or purchase order with the item(s) to reject. 
3. Right-click and select Edit. The Edit Requisition or Edit Purchase Order screen opens.
4. Select the Requisition Items or Purchase Order Items tab.
5. Select the item(s) to reject. Use Ctrl+Click or Shift+Click to select multiple items.
6. Right-click and select Review -> Reject. The Review Requisition Item or Review Purchase Order Item screen opens.
7. Enter a note with the reason for rejecting the item into the Note field. 
8. Click OK. If there are multiple items you are rejecting, the Review Requisition screen opens for the next item. If you do not want to reject the item, click the Skip button. When you have rejected all items, the screen closes.

Mobile Approvals

You can also allow your users to approve requisitions and purchase orders from their mobile device. To do this, you need to:

• Purchase a Mobile Purchasing license. Contact Momentus for more information.
• Activate the mobile purchase order organization parameter
• Enable users for mobile access

1. Click the Organization Parameters link from the Main Menu. The Organization Parameters screen opens.
2. Select the PO (application) 500 (code) organization parameter.
3. Right-click and select Edit. The Edit Organization Parameter screen opens.
4. Enter Y into the Value field.
5. Click OK.
6. Click the Users link from the Main Menu. The Users screen opens.
7. Select the users who need mobile access. Use Ctrl+Click or Shift+Click to select multiple users
8. Right-click and select Edit Multiple. The Edit Multiple Users screen opens.
9. Expand the Access and Security section.
10. Check the Mobile Access check box.
11. Select Yes from the drop-down.
12. Click OK.

When an approver receives an email to approve a requisition or a purchase order and clicks on the link from his/her mobile device, it will open the Review Requisition/Purchase Order window.

Approval Security

Allow Access to Purchasing/Vouchers by Department

This access privilege controls who can approve requisitions and purchase orders by department. Roles and/or users assigned to this privilege can approve requisitions and purchase orders with departments they are assigned to approve using the Assign Details option. If no roles/users are assigned to this access privilege, it is considered inactive and all roles/users can approve all departments' requisitions and purchase orders. If a user is assigned (activating the access privilege), all unassigned roles/users are unable to approve any departments' requisitions and purchase orders.

Allow Approval of PO After Exceeding Budget Amount

This access privilege controls which roles/users can approve a purchase order when the amount of the purchase order exceeds the amount budgeted to the general ledger account to which the purchase order distribution is assigned. When this privilege is activate, any unassigned role/user cannot approve a purchase order when the purchase order amount plus other unpaid purchase order lines plus previously incurred expenses exceeds the year to date budget amount for the fiscal period of the estimated receipt date. This access privilege is only checked when the Budget Controls check box is checked on the Purchasing Configuration screen. If no roles/users are assigned to the privilege, it is considered inactive and all roles/users are able to approve purchase orders which exceed the budgeted amount.

Allow Level 9 Approval of Self Entered Purchase Orders

This access privilege controls which users can approve purchase orders where they are the user who entered or requested the purchase order. Roles/users assigned to this privilege are allowed to approve their own purchase orders. If no users are assigned to the privilege, it is considered inactive and all users can approve their own purchase orders. This privilege is used with approval levels so regardless of this privilege setting, only those with approval access can approve purchase orders. 

Allow Level 9 Approval of Self Entered Requisition

This access privilege controls which users can approve requisitions where they are the user who entered or requested the requisition. Roles/users assigned to this privilege are allowed to approve their own requisitions. If no users are assigned to the privilege, it is considered inactive and all users can approve their own requisitions. This privilege is used with approval levels so regardless of this privilege setting, only those with approval access can approve requisitions. 

Troubleshoot Access Message

Previous versions did not enforce the Level From setting. If a user receives this message when approving a requisition or purchase order, review the approval configuration and update using the recommendations above.

The Purchase Order has already been Approved to the highest available level and/or amount you have access to.