An approval profile contains the rules that define if and how an adjustment is approved. If an adjustment type does not reference an approval profile, the related adjustments do not require third-party approval before they impact an obligation's debt. If an adjustment type references an approval profile, the approval profile's approval hierarchy defines if the adjustment requires approval and who the authorized approvers are. For example, an approval profile can be configured with the following approval hierarchy:
Adjustments < $0 require approval by the "credit approvers role"
Adjustments >= $0 and <= $10 do not require approval
Adjustments > $10 and <= $100 require the approval of a user that belongs to the "level 1 approvers role"
Adjustments > $100 requires the approval of a user that belongs to the "level 2 approvers role"
The approval profile includes a setting to indicate if the adjustment requires Single approval or Multiple levels of approval. If there is an adjustment for $200 and the approval profile is configured for Single approval, only one approval is needed by the "level 2 approvers role". If instead the approval profile for this adjustment type indicate Multiple levels of approval: first a user that belongs to the "level 1 approvers role" must approve the adjustment; afterwards, the adjustment must be approved by a user that belongs to the "level 2 approvers role".
Transfer adjustments. The term "transfer adjustment" refers to two adjustments that are used to transfer moneys between two obligations. The adjustment with the positive amount is considered to be the debit adjustment; the other adjustment is considered the credit adjustment. When a transfer adjustment requires approval, only one of the adjustments needs to be approved. You control whether the debit side or the credit side of a transfer adjustment is used to control the approval process when you set up the approval profile.
Separation of Duties. The base product logic includes validation that prevents a user from approving an adjustment if that user was the one that created the record or if that user already approved a previous approval "level" (for approvals that define Multiple levels).
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