Exception-Based Approvals for Fixed Asset Transactions

Optimize controls for managing the fixed assets lifecycle to route exceptions for manager approvals and use automatic approvals for routine transactions. These approvals encompass most asset transactions including additions, transfers, retirements, re classifications, and cost or method adjustments.

The asset capitalization process requires a certain level of governance to review and approve the capital costs that are initialized as the cost of an asset. Similar governance is required for movement of assets, retirements, and other forms of cost adjustments.

Assets provides an approval workflow that allows users to configure the proper approval mechanism to tightly control fixed asset transactions that materially affect the balance sheet and profit and loss account. This serves as a centralized source of information, which helps to comply with internal controls and provides better accountability and recording of the audit trail.

When asset transactions are posted, Assets sends an approval request notification to the approver identified from the rules provided. Transactions for a single asset or an entire batch can be approved. These are referred to as the approval stages and the approval rules must be defined separately.

Manage Workflow Rules in a Spreadsheet Page

To download a template:

Navigate to Setup and Maintenance -> Manage Workflow Rules in Spreadsheet -> Asset Transactions Approval Basic Template and click the Download icon.

Asset Transactions Approval

The copy of the template used for the last successful upload is stored. The Upload History section displays the status of the past uploads. Use this template to review and modify the existing rules. This simplifies the process of creating and managing workflow rules.

Rule Template

The templates provide a simple layout for defining workflow rules in accordance with an organization’s approval policy.

Asset Approval Rules Spreadsheet with Sample Rules

Define single asset and mass asset transaction approval rules using the Asset Transaction Approval Basic Template in the  Manage Workflow Rules in Spreadsheet task.

Refer to the tooltips on each column header for instructions on how to enter the rule information. Users can define approval rules to send approval notifications to:

  • Supervisory Hierarchy
  • Approval groups (Group in Serial,Group in Parallel,Group first Responder)
  • Job Level Hierarchy
  • Specific users.
  • User with specific application role

Users can also create rules to automatically reject or automatically approve transactions based on the rule conditions.

Data Sets

If the approver for a transaction varies depending on certain transaction attributes, users can use data sets while defining the approval rule. Use data sets, to define a mapping between the approver and relevant transaction attributes.

For example, a category changes that requires approval from the managers responsible for the asset class. Similarly a cost addition with varying cost range requiring approval from three level of managers for an asset book.

Data Set

Business Benefits are as follows:

The approval workflow:

  • Eliminates paperwork and also serves as a centralized source of information about all the transactions pertaining to asset approvals.
  • Helps users comply with internal controls.
  • Provides better accountability and recording of the audit trail.
  • Facilitates easier coordination within the accounting department.

Steps to Enable

Setup and Maintenance-> Manage Asset Books -> Select an asset book to enable approval for.

Enable Approvals in Create or Edit Asset Book Page

Tips And Considerations

  • Analyze the approval policies and identify the approval process requirements. Simplify the approval requirements into a business rule.
  • When preparing rules for entering into a spreadsheet, it's important to consider various aspects of the business rule to ensure accuracy, clarity, and effectiveness. Here are some key aspects to decide:
    • If the transaction requires approval.
    • The the approvers of the transaction.
    • Whether transactions can be automatically approved or automatically rejected.
    • If FYI notifications are necessary for approvals under a particular rule.
  • All the rules within the rule block are processed simultaneously however, rule blocks are processed in sequence.
  • The rule history in the Manage Workflow Rules in Spreadsheet task stores the copy of the rule template of the last successful rule upload .Users can download this template to review or modify the rules. The rules are overwritten after every successful upload.
  • Use the appropriate administrator role such as Application Implementation Consultant. This helps users monitor and troubleshoot workflow tasks for others and for themselves.

Key Resources

  • Refer to the Asset Transaction Approval Basic Template in  Manage Workflow Rules Spreadsheet Page.
  • Assets Transaction Approval note (Doc ID 3025197.1)

Access Requirements

Users who are assigned the "Application Implementation Consultant Role" can monitor and trouble shoot workflow task.