Enter Purchase Order Authorization Rule

Explanation

Use this activity to define the criteria for when the connected authorization routing template will be valid for a purchase order or purchase order change order.

When you try to release a purchase order or purchase order change order, or when you manually fetch an authorization template, the system checks for any purchase order authorization rule that fulfills the requirement. The system selects the authorization rule with the highest priority implied, i.e., 1 indicates the highest priority. For a specific site, you cannot have two purchase order authorization rules with the same priority number with Planned and Released status, but as soon as one has been closed a new one with the same priority can be created. A closed rule can be set again to Planned status using the right-mouse button option Changed to Planned in the header.

To ensure that the authorization routing template will be applied by the system, you can indicate that the purchase order must use a specific supplier, coordinator, etc. If you want the rule to be applicable to all purchase orders or purchase order change orders regardless of the value for a criterion, select the corresponding check box in the General tab.

The approval rule can have one of three status: Planned, Released, and Closed. The status is changed using the right-mouse button menu. The approval rule must be in the Released status to be used in the workflow.

You can also specify a minimum and a maximum amount in the authorization rule. The Use Gross Amounts  check box can be used to indicate whether the values specified as minimum and maximum are inclusive of tax. If the amount of the purchase order, or purchase order change order is within these values, the authorization rule will be used.

Select the Valid for Original Authorization check box if you want the rule to be used for authorization of the original purchase order revision. Select the Valid for Change Order Authorization check box if you want the rule to be used for authorization of purchase order change orders.

The Use Delta Amt. for Change Orders check box is used to decide whether the full or changed amount since the last revision should be used in the authorization of the purchase order. This setting is only available if the authorization rule is valid for change order authorization.

The values in the Allow Changes After Authorization list are used to decide whether the total amount of the authorized or partially authorized purchase order can be modified or not. Possible values are No Changes Allowed, Within Order Amount and Within Authorizer Limit.

Authorization Routing Option determines how the system includes steps (authorization lines) and validate steps in the authorization routing template to the authorization routing on the purchase requisition line or purchase order.

Include Steps Based on Limits - The system will only generate authorization steps until a step with enough authorization limits to authorize the   purchase order or requisition line that has been reached
Include All Steps and Consider Limits - The system will copy all the steps in the Authorization routing template and validate the authorization limit of the last step while authorizing the purchase order or purchase requisition
Include All Steps do not Consider Limits - The system will copy all the steps in the Authorization routing template without validating the authorization limit of the last step while authorizating in the purchase order or purchase requisition

You can read more about purchase authorization and purchase order authorization rules in the About Purchase Authorization description.

Prerequisites

System Effects

Window

Purchase Order Authorization Rule

Related Window Descriptions

Purchase Order Authorization Rule

Procedure

  1. In the Purchase Order Authorization Rule window, create a new record.
  2. Enter the ID of the authorization rule in the Authorization Rule field.
  3. If you are connected to several sites, indicate the proper site. You can either enter the code manually or select it from the List of Values.
  4. Enter a priority number.
  5. Click the General tab.
  6. Indicate the template ID of the authorization routing template that will be used when the criteria for the authorization rule are fulfilled.
  7. Indicate if the authorization rule is valid for original purchase order authorization and/or change order authorization by selecting the Valid for Original Authorization and Valid for Change Order Authorization check boxes. If the Valid for Change Order Authorization is selected, you can indicate if the full amount or changed amount (delta) should be used in change order authorization by selecting the Use Delta Amt. for Change Orders check box.
  8. You can specify a minimum and a maximum amount. If nothing is specified, the minimum amount is defaulted to zero (0) and the maximum amount is unlimited. If the values entered in the Minimum field and the Maximum field are to be inclusive of tax, select the Use Gross Amounts check box. You can also select a value in the Allow Changes after Authorization list to decide whether the user can make any changes that affect the total amount of the purchase order line.
  9. Select the Apply for Non Project Connected PO check box if this rule also should be applicable for purchase orders or purchase order change orders which are not connected to a project.
  10. Select the value Include Steps based on Limits from the dropdown list Authorization Routing Option if you want the system to only generate authorization steps until a step with enough authorization limits to authorize the purchase order or purchase order change order has been reached.
  11. Select the appropriate tab and enter the criteria applicable for the rule.
  12. Save your entry.