Funds Override for Purchase Orders

As a buyer, you can submit a purchase order with insufficient funds and request a funds override. The purchase order must be subject to a control budget with funds override enabled.

The funds override request is sent to the appropriate person for approval. After approval is secured, the funds are reserved for the purchase order.

Key factors affecting whether and how you can submit a request for an insufficient funds override are:

Prerequisites such as budgetary control setup and security privileges.
Submitting an order with insufficient funds.
Requesting override for insufficient funds.
Approval routing based on budgetary control setup.
Viewing the funds override in the purchase order.

Prerequisites

To request an insufficient funds override, you must have the function security privilege Request Budgetary Control Override. The privilege is delivered with the following roles:

Advanced Procurement Requester
Buyer
Category Manager
Procurement Manager

Your organization can also add the privilege to or remove it from a role that's configured from a copy of a predefined role.

You can request funds override for a purchase order transaction only if:

The transaction is subject to a control budget that has funds override enabled.
The override limit for the control budget isn't exhausted.
A funds override approver can be identified.
The required override amount for each distribution is equal to or less than the approver's override approval limit.

Your organization sets up funds override rules for a control budget using the Manage Control Budgets task. Find the task in the Setup and Maintenance work area, Financials offering, Budgetary Control and Encumbrance Accounting functional area.

How You Submit an Order with Insufficient Funds

You can submit purchase orders on the Edit Document page. Find it in the Purchase Orders work area, in tasks such as Create Order or Manage Orders. Prior to submitting a purchase order for approval, you can perform a funds check. Assuming the prerequisite criteria are met, if the transaction lacks sufficient funds you can still submit the order for approval.

Request Override for Insufficient Funds

When you submit a transaction and it fails funds check, you're provided the option to request an insufficient funds override request.

The Warnings dialog displays the message, "The distribution failed funds check. A funds override will be requested if you submit the document."
Click Continue to request a funds override.
On the Warning dialog, enter a Justification and click Yes to submit the funds override request.
Click OK on the confirmation dialog.

Approval Routing Based on Budgetary Control

Funds override is approved as part of the document approval process, using the override rules set up for the control budget. Your organization sets up approval rules for purchase orders using the Manage Purchasing Document Approvals task. You can find the task in the Setup and Maintenance work area, Approval Management functional area.

The override approver for the transaction is identified automatically, based on the setup for the control budget. There must be only one override approver. If the override rules return multiple override approvers, the application picks one of them randomly. In the delivered approval rule, the funds override approver is added at the last stage of the approval workflow. If your organization wants the funds override approval to happen at a different stage, they can:

Disable the delivered approval rule, and,
Define their own approval rule.

You can use the Manage Approvals action in the Edit Document page to see the override approver added to the approval workflow.

The actual funds override to reserve funds occurs after all approvals are secured.

View the Reserved Funds in the Purchase Order

You can see whether the funds override is approved on the purchase order header.

The Funds Status displays the value: Reserved.
Click Reserved to open the Funds Reservation: Purchase Order dialog.
The dialog displays the message, "Override was taken."