Invoice Approve Rule Manager

This page is accessed via Financials > Payment Rule Management > Invoice Approve Rule.

Invoice approve rules specify the limits, ranges, and other criteria used to automatically approve invoices for payment. For both cost and weight approval, invoice approve rules compare payment invoices to their matched buy shipments or shipment group.

Note: In case of an invoice related to a shipment group, the total cost or the total weight of the shipment group is calculated by summing up costs or weight of all the shipments (related to the shipment group) which have the same service provider as on the invoice.

There are two types of invoice approve rules: default and detailed. Default invoice approve rules apply to all invoices that are not covered by the detailed rules. Detailed auto approve rules specify cost and weight maximums for various percent above and below ranges.

Note: At least one default invoice approve rule should be created to govern all non-detailed approvals. If a default invoice approve rule is not created, automatic invoice approval may not operate correctly.

Once invoice approve rules have been saved, they must be associated with an invoice approve rule profile.

Note: In order for a user to be able to issue approvals, the user must have an invoice approve rule profile defined.

Header

1. Enter a unique Invoice Approve Rule ID and a Description to further identify the rule. The IDs of saved rules cannot be edited.
2. Enter the Effective Date and the Expiration Date of the rule. The effective and expiration dates for payment rules relate to the matched shipment start date (default).

   Note: See the glog.invoice.approve.matchEffectiveExpirationDate.default property for more information.

Criteria

1. Enter a Location Profile ID to specify that the source location (that is, the first stop) on an invoice match one of the locations in that location profile. If no Location Profile ID is specified, then all locations on the invoice are valid.
2. Select a Mode Profile ID to specify the transportation mode associated with this rule.

   Note: If no mode profile is defined, OTM will not perform transport mode compatibility validation.

3. Select a Consolidation Rule Type based on the type of invoices to which this match rule is to apply: CONSOLIDATED (that is, parent, STANDARD (or stand-alone), or BOTH. For a shipment group related invoice, the type will be STANDARD or BOTH.

Default Tolerance

In this section you define the default approval rules. When the approval process runs, Oracle Transportation Management compares the parent/standard invoice charge with the sum of the matched shipments costs. The Cost and/or Weight Approval Rules are validated in this step.

Once the Invoice Approval Tolerance Rule has passed, the auto approval process then validates each invoice line approval tolerance rule by comparing child invoice line item charges with the matched shipment cost line at the cost type level. Out-of-Tolerance details of each failed invoice line items are captured during this process/step.

If any line items fail at that point, the process validates the Overall Cost Deviation Rule by adding all the individual line item deviation amounts.

Apply Cost Approval Rule

1. Select Apply Cost Approval Rule and/or Apply Weight Approval Rule. If you select both, invoices must meet the criteria of both types of rules in order to be approved. At least one of these rules must be selected.
2. Enter a number from 1 to 100 in the Allowable Percent Above and/or the Allowable Amount Above fields.
3. Enter a number from 1 to 100 in the Allowable Percent Below and/or the Allowable Amount Below fields.

   Note: These two steps specify the default percent above and below the total actual cost of a shipment that the amount due of an invoice can be. By setting the glog.invoice.autoApprove.tolerancePercentBasis property you control whether the percentage is based on the shipment cost/weight or the invoice cost/weight. A blank field indicates 0 (zero) percent (an exact match).
   
   If both percentages and amounts are specified, the more restrictive tolerance will be used.

Apply Weight Approval Rule

1. Select Apply Weight Approval Rule. If you select both this and Apply Cost Approval Rule, invoices must meet the criteria of both types of rules in order to be approved. At least one of these rules must be selected.

2. Enter a number from 1 to 100 in the Allowable Percent Above Weight and/or Allowable Weight Above fields.
3. Enter a number from 1 to 100 in the Allowable Percent Below and/or the Allowable Weight Below fields.

   Note: These two steps specify the default percent above the total weight of a shipment that the summary weight of an invoice can be. This field is also affected by the glog.invoice.autoApprove.tolerancePercentBasis property. A blank field indicates 0 (zero) percent (an exact match).
   
   If both percentages and amounts are specified, the more restrictive tolerance will be used.

Apply Overall Cost Deviation Rule

1. Select the Apply Overall Cost Deviation Rule check box if you want the cost deviation rule to apply. This option allows you to configure a rule to approve an invoice if the sum total of all child objects is within a specified amount. In other words, even if multiple invoice line items failed their individual tolerance checks, OTM should go ahead and approve the invoice if the overall cost deviation is within the specified range.
2. Select the aggregate type from the Overall Cost Deviation Aggregate Type drop-down list. This level of control prevents negative values from counteracting higher-than allowable values during the summary process – in order to prevent unwanted items from being approved. Your choices are
   1. • Positive: only values exceeding the allowable percent above or allowable amount above will be considered
      • Negative: only values exceeding the allowable percent below or allowable amount below will be considered
      • Both: values exceeding both the allowable percent above or allowable amount above will be considered
3. Enter a number from 1 to 100 in the Allowable Percent Above and/or the Allowable Amount Above fields.
4. Enter a number from 1 to 100 in the Allowable Percent Below and/or the Allowable Amount Below fields.

   Note: These two steps specify the default percent above and below the total actual cost of a shipment that the amount due of an invoice can be. By setting the glog.invoice.autoApprove.tolerancePercentBasis property you control whether the percentage is based on the shipment cost/weight or the invoice cost/weight. A blank field indicates 0 (zero) percent (an exact match).
   
   If both percentages and amounts are specified, the more restrictive tolerance will be used.

5. Enter an amount in the Max Approval Amount Over Invoice Cost field.

Detail Tolerance

The amount and weight entries represent the maximum invoice values that can be approved using the specified ranges. These limit-specific ranges override the default invoice approve rules for applicable invoices. For example, you could enter five percent above/below range for invoices up to $1000, a two percent range for invoices up to $10,000, and a one percent range for invoices up to $100,000.

Note: If detailed tolerance amounts are added to the record, they will take precedence over the default tolerance figures.

1. Enter an Approve to Amount and/or an Allowable Percent Above, or an Allowable Amount Above
   OR
   Enter an Allowable Percent Below and/or an Allowable Amount Below.
2. Enter an Approve to Weight and/or an Allowable Percent Above, or an Allowable Weight Above
   OR
   Enter an Allowable Percent Below and/or an Allowable Weight Below.
3. Click Save.