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Approval and Online Invoice Approval

After you enter an invoice, you must approve it before you can pay or post it. You can approve an invoice online, or you can approve an invoice by submitting Payables Approval. Both online approval and the Payables Approval program perform two-way, three-way, or four-way matching of invoices to purchase orders. Approval verifies tax information (if applicable), foreign currency information (if applicable), and that the invoice is correctly distributed.

Both online approval and Payables Approval place matching holds on invoices that do not pass matching within your tolerances. Approval also places other types of holds on invoices that do not pass tax, currency, and distribution checks. Some types of holds prevent you from posting an invoice. If an invoice has a hold on it that prevents posting, Oracle Payables does not check funds for the invoice or attempt to reserve funds. You can manually release holds that Oracle Payables places on invoices that fail funds reservation because of insufficient funds. You cannot manually release holds on invoices that fail funds reservation because the system was unable to perform the funds check.

See: Approval

If you are using budgetary control, Approval treats matched and unmatched invoices as follows:

Matched Invoices

If an invoice passes matching conditions and has no other holds that prevent its posting, Oracle Payables automatically checks funds. If the invoice has a quantity or price variance with the purchase order, Oracle Payables automatically checks that you have enough funds for the variance. If you use absolute budgetary control, Oracle Payables places a funds hold on invoices that have distributions not passing funds checking. If you use advisory budgetary control, Oracle Payables reserves funds for the invoice variance, whether it is a quantity or a price variance. For either absolute or advisory budgetary control, Oracle Payables creates a negative encumbrance entry for negative variances. Oracle Payables creates any additional encumbrance using the invoice encumbrance type.

Unmatched Invoices

If an invoice passes tax, currency, and distribution checks, and has no other holds that prevent its posting, Oracle Payables automatically performs funds checking during approval. If you use advisory budgetary control, Oracle Payables reserves funds for the invoice, whether funds are available for each distribution of the invoice. If you use absolute budgetary control, Oracle Payables places a funds hold on invoices that have distributions not passing funds checking. Oracle Payables also does not reserve funds for the invoice, since funds are not available for it. Oracle Payables creates encumbrances using the invoice encumbrance type.

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