Enter Purchase Order Authorization Rule

Explanation

Use this activity to define the criteria for when the connected authorization routing template will be valid for a purchase order or purchase order change order.

When you try to release a purchase order or purchase order change order, or when you manually fetch an authorization template, the system checks for any purchase order authorization rule that fulfills the requirement. The system selects the authorization rule with the highest priority implied, i.e., 1 indicates the highest priority. For a specific site, you cannot have two purchase order authorization rules with the same priority number with Planned and Released status, but as soon as one has been closed a new one with the same priority can be created.

To ensure that the authorization routing template will be applied by the system, you can indicate that the purchase order must use a specific supplier, coordinator, etc. If you want the rule to be applicable to all purchase orders or purchase order change orders regardless of the value for a criterion, select the corresponding check box in the General tab.

The approval rule can have one of three status: Planned, Released, and Closed. The status is changed using the right-mouse button menu. The approval rule must be in the Released status to be used in the workflow.

You can also specify a minimum and a maximum amount in the authorization rule. The Use Gross Amounts check box can be used to indicate whether the values specified as minimum and maximum are inclusive of tax. If the amount of the purchase order, or purchase order change order is within these values, the authorization rule will be used.

Select the Valid for Original Authorization check box if you want the rule to be used for authorization of the original purchase order revision. Select the Valid for Change Order Authorization check box if you want the rule to be used for authorization of purchase order change orders.

The Use Delta Amt. for Change Orders check box is used to decide whether the full or changed amount since the last revision should be used in the authorization of the purchase order. This setting is only available if the authorization rule is valid for change order authorization.

The values in the Allow Changes After Authorization list are used to decide whether the total amount of the authorized or partially authorized purchase order can be modified or not. Possible values are No Changes Allowed, Within Order Amount and Within Authorizer Limit.

You can read more about purchase authorization and purchase order authorization rules in the About Purchase Authorization description.

Prerequisites

An authorization routing template must have been entered and saved.
When a specific supplier, supplier statistic group, coordinator, or buyer is to be indicated, you must have entered the corresponding basic data.

System Effects

A purchase order authorization rule is created and ready to be released.
If the Use Gross Amounts check box is selected, the values entered in the Minimum and Maximum fields will be inclusive of tax. These values will be compared against the gross amounts of the purchase order.

Window

Purchase Order Authorization Rule

Related Window Descriptions

Purchase Order Authorization Rule

Procedure

In the Purchase Order Authorization Rule window, create a new record.
Enter the ID of the authorization rule in the Authorization Rule field.
If you are connected to several sites, indicate the proper site. You can either enter the code manually or select it from the List of Values.
Enter a priority number.
Click the General tab.
Indicate the template ID of the authorization routing template that will be used when the criteria for the authorization rule are fulfilled.
Indicate if the authorization rule is valid for original purchase order authorization and/or change order authorization by selecting the Valid for Original Authorization and Valid for Change Order Authorization check boxes. If the Valid for Change Order Authorization is selected, you can indicate if the full amount or changed amount (delta) should be used in change order authorization by selecting the Use Delta Amt. for Change Orders check box.
You can specify a minimum and a maximum amount. If nothing is specified, the minimum amount is defaulted to zero (0) and the maximum amount is unlimited. If the values entered in the Minimum field and the Maximum field are to be inclusive of tax, select the Use Gross Amounts check box. You can also select a value in the Allow Changes after Authorization list to decide whether the user can make any changes that affect the total amount of the purchase order line.
Select the Apply for Non Project Connected PO checkbox if this rule also should be applicable for purchase orders or purchase order change orders which are not connected to a project.
Do not select the Include All Steps in Authorization check box if you want the system to only generate authorization steps until a step with enough authorization limits to authorize the purchase order or purchase order change order has been reached.
Select the appropriate tab and enter the criteria applicable for the rule.
Save your entry.