Previous  Next          Contents  Index  Navigation  Glossary  Library

Approval

Before you can pay or post an invoice, including prepayments, you must submit Approval for the invoice in one of three ways:

Approval validates the matching, tax, period status, exchange rate, and distribution information for invoices you enter and automatically applies holds to exception invoices. If an invoice has a hold, you can release the hold by correcting the exception that caused Approval to apply the hold and then resubmitting Approval. Correct exceptions by updating the invoice or the purchase order, or change your Invoice Tolerances. Payables automatically releases the hold when the exception is no longer an issue. You can manually release certain invoice holds even if you have not resolved the matching error condition. You can do this in the Invoice Holds window.

Authorized users can always correct an invoice, even if you have approved, paid or created journal entries for the invoice. See also: Adjusting Invoices.

You can identify all invoices that Payables has not yet reviewed with Approval by submitting the Invoice Register for Unapproved Invoices Only. You can check the Approval status of an invoice online in the Invoice Overview window or the Invoices window.

Payables and Oracle Alert are fully integrated to allow you to alert approvers and purchasing agents when you or Payables places an invoice on a specific hold. Alert also provides you with an integrated system of alerts, messages, and message distribution to focus attention on time-sensitive or critical information and streamline the approval process. Exception reporting in Alert is accomplished using either electronic mail or paper reports.

Approval Example

For example, you have three invoices on matching hold. The first invoice is on matching hold because the quantity billed exceeds the quantity received. The second invoice is on matching hold because the invoice price exceeds the purchase order shipment price. The third invoice is on matching hold because the quantity billed exceeds the quantity ordered.

Invoice 1. Your receiving department receives the goods and records the receipt information. Your invoice now matches the receipt and Payables releases the hold when you submit Approval.

Invoice 2. A supplier sends a credit to correct the amount due on a previous invoice. After you enter the credit and match it to the same purchase order, your invoice now matches the purchase order and Payables releases the hold when you submit Approval. Use Approve Related Invoices in the Invoice Actions window to submit Approval for both the credit and the original invoice.

Invoice 3. You increase your tolerance levels using the Tolerances window. Your invoice now matches your receipt and purchase order within your newly-defined tolerance levels and Payables releases the hold when you submit Approval.

See Also

Releasing Holds

Payables Options

Purchasing Integration

Summary of Approval Hold Codes

Encumbrance Entries in Payables

Using Oracle Alert for Exception Reporting

Approval When You Use Budgetary Control

         Previous  Next          Contents  Index  Navigation  Glossary  Library