Example of Requisition Approval Policy

Acme Corp has agreements in place for most facilities and IT services. In addition, they have set up a supervisory hierarchy for approvals based on requisition amount.

Joe Smith is Acme's CEO and therefore has the designation of Top Worker in Hierarchy for the supervisory hierarchy.

This figure illustrates Acme's approval policies. Depending on the purchase amount, the requisition is autoapproved, or must go through one, two, or three levels of supervisory approval.

Rules in Header Hierarchy Participant:

1. No approvals required, such as self approved, for requisitions less than or equal to 500 USD.

   • Rule setup scenario:

   CONDITION
   Approval Amount is less than or equal to 500
   AND Functional Currency Code equals USD

   ACTION
   Action Type: Automatic
   Set Outcome To: Approved

   Displayed in the Conditions table as:

   AND

   	Approval Amount is less than or equal to 500

   	Functional Currency Code equals USD

2. One level of Supervisory hierarchy approval required for requisitions more than 500 USD and less than or equal to 1000 USD.

   • Rule setup scenario:

     CONDITION
     Approval Amount is greater than 500
     AND Approval Amount is less than or equal to 1000
     AND Functional Currency Code equals USD
     ACTIONS
     Action Type: Approval Required
     Route Using: Supervisory Hierarchy
     Approval Chain Of: Preparer
     Start With: Manager
     Number of Approval Levels: 1
     Top Worker in Hierarchy: Joe Smith

     Displayed in the Conditions table as:

     AND

     	Approval Amount greater than 500

     	Approval Amount less than or equal to 1000

     	Functional Currency Code equals USD

3. Two levels of Supervisory hierarchy approval required for requisitions more than 1000 USD and less than or equal to 2000 USD.

   • Rule setup scenario:

     CONDITION

     Approval Amount is greater than 1000
     AND Approval Amount is less than or equal to 2000
     AND Functional Currency Code equals USD
     ACTIONS
     Action Type: Approval Required
     Route Using: Supervisory Hierarchy
     Approval Chain Of: Preparer
     Start With: Manager
     Number of Approval Levels: 2
     Top Worker in Hierarchy: Joe Smith

     Displayed in the Conditions table as:

     AND

     	Approval Amount greater than 1000

     	Approval Amount less than or equal to 2000

     	Functional Currency Code equals USD

4. Three levels of supervisory approval required for requisitions more than 2000 USD.

   • Rule setup scenario:

     CONDITION
     Approval Amount is greater than 2000
     AND Functional Currency Code equals USD
     ACTIONS
     Action Type: Approval Required
     Route Using: Supervisory Hierarchy
     Approval Chain Of: Preparer
     Start With: Manager
     Number of Approval Levels: 3
     Top Worker in Hierarchy: Joe Smith

     Top Worker in Hierarchy: Joe Smith

     AND

     	Approval Amount is greater than 2000

     	Functional Currency Code equals USD

Scenario

Rules in Lines Preapproval Header Stage: Preapproval Header Hierarchy Participant:

1. If the requisition is an emergency request, the preparer's manager's approval is required before other approvers are notified.

   • Rule setup scenario:

     IF

     Emergency Requisition equals Yes

     THEN

     Action Type = Approval Required

     Route Using = Supervisory Hierarchy

     Approval Chain Of = Requester

     Start With = Manager

     Number of Approval Levels = 1

     Top Worker in Hierarchy = Joe Smith