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Purchase Order Approval
Using Approval Management
Engine (AME)
Prepared by: Ahmed Ismail Abdelsalam
Title: Oracle SCM Consultant
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Table of Contents
Introduction _________________________________________________________________ 1
Part 1 – How to Setup Purchase Order Transaction Type-ORACLE Metalink Note __________ 1
1.1 Apply Required Rollup Patch ___________________________________________________ 1
1.2 Create and Populate Document Styles ___________________________________________ 1
1.3 Approvals Management Engine (AME) Setups _____________________________________ 6
Part 2 –Customer Case Study ___________________________________________________ 10
2.1 Case Study Overview ________________________________________________________ 10
2.2 Creating/ Updating PO Document Styles ________________________________________ 11
2.3 Define Position Hierarchy ____________________________________________________ 13
2.4 Select AME Purchase Order Transaction ________________________________________ 17
2.5 Define Attributes ___________________________________________________________ 18
2.6 Define Condition ___________________________________________________________ 23
2.7 Define Action Types _________________________________________________________ 26
2.8 Define Rule(s) ______________________________________________________________ 29
Part 3 – Test Case ____________________________________________________________ 32
3.1 Given Data for the test Case __________________________________________________ 32
3.2 Standard Purchase Order Cycle ________________________________________________ 32
3.3 Contract Release Cycle ______________________________________________________ 37
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List of Figures
Figure 1-Document Styles Navigation _____________________________________________________________ 11 Figure 2-Position Hierarchy for Option 1 ___________________________________________________________ 13 Figure 3-Same Position can't be entered in the same Position Hierarchy _________________________________ 14 Figure 4- Position Hierarchy for Option 2 __________________________________________________________ 15 Figure 5-Case Study Position Hierarchy ____________________________________________________________ 16 Figure 6-Purchase Order AME Transaction Type ____________________________________________________ 17 Figure 7-Attributes Link ________________________________________________________________________ 18 Figure 8-Create Attribue _______________________________________________________________________ 19 Figure 9-Update NON-DEFAULT POSITION STRUCTURE ID ____________________________________________ 21 Figure 10-Condition Link _______________________________________________________________________ 23 Figure 11-Create Conditions ____________________________________________________________________ 23 Figure 12-Defining Condition Process _____________________________________________________________ 24 Figure 13-Contract_reference (1) condition ________________________________________________________ 25 Figure 14-Contract_reference (2) condition ________________________________________________________ 25 Figure 15-Action Type Link ______________________________________________________________________ 26 Figure 16-Create Action Types ___________________________________________________________________ 27 Figure 17-Requires approval up to HR Positions: 01.Admin Manager ____________________________________ 27 Figure 18-Requires approval up to HR Positions: 01.Fin Manager _______________________________________ 28 Figure 19-Rule Link ____________________________________________________________________________ 29 Figure 20-Create Rule _________________________________________________________________________ 30 Figure 21-AME Position Hierarchy Rule for Standard PO ______________________________________________ 31 Figure 22-AME Position Hierarchy Rule for Contract Release __________________________________________ 31 Figure 23-Standard PO/Manager Login ___________________________________________________________ 32 Figure 24-Create Standard PO ___________________________________________________________________ 33 Figure 25-Check Standard PO Status ______________________________________________________________ 34 Figure 26-Check Action History __________________________________________________________________ 35 Figure 27-Standard PO/Admin (Approver) Login ____________________________________________________ 35 Figure 28-Approving Standard Purchase Order _____________________________________________________ 36 Figure 29-Standard Purchase Order Approved ______________________________________________________ 36 Figure 30-Referring Contract Number _____________________________________________________________ 39 Figure 31-Fin Manager Login____________________________________________________________________ 40 Figure 32-Approving Contract Release ____________________________________________________________ 41
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Introduction
his White Paper contains 2 main part, the first part is representing how to enable approval
management engine (AME) and how to set it up (basic setup) based on an Oracle Metalink note.
The second part is representing a client case study that is resolved by using Purchase Order AME
and can't be resolved by the standard approval functionality using Position Hierarchy or supervisor
approvals. The reader should have intermediate knowledge about Purchase orders approvals (Position
Hierarchy) as a per requisite in order to understand this white paper
Part 1 – How to Setup Purchase Order Transaction Type-ORACLE
Metalink Note
1.1 Apply Required Rollup Patch
1. Apply Patch: 14254641:R12.PRC_PF.B
1.2 Create and Populate Document Styles
1. Choose Document Styles menu option, see image below
T
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2. Click on Create button to create a new Document Style (can also pick existing Document Style
listed), see image below
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3. Populate these fields, see image below
Approval Workflow = PO Approval Workflow
Workflow Startup Process = PO AME Approval Top
AME Transaction Type = Purchase Order Approval
Allow Document Withdrawal check box (optional)
Send Withdrawal Notifications to all Approvers check box (optional)
Note: The workflow settings from the document style page override the document type form settings.
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Here is an example of a completed Document Style page.
Note: If you update the Standard Style document style, then Purchase Orders submitted through the PO Entry Form will use the PO AME routing. This is not available for Blanket Releases however. See screen shot below
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1.3 Approvals Management Engine (AME) Setups
4. Navigate to Approvals Management Engine, Business Analyst responsibility, see image below.
Choose Transaction Type = Purchase Order Approval, see image below and click Setup, see image
below
In the page that appears see the Attributes, Conditions, Action Types, and Approval Groups tabs.
Create the appropriate Conditions and Approval Groups as needed. Also, new Attributes (and
subsequent Conditions) can also be created. See image below for launching point for those pages
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5. Create AME Rule(s) with appropriate Conditions and Actions for those Conditions, see images
below. From AME page click on the Rules tab all the way on the Left, see image below.Use the
Create button to create a new Rule or use Update icon to update existing Rules
b. For a new Rule, enter Rule Name and other appropriate fields, see image below
c. Enter Conditions for this Rule, see image below
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d. Enter the appropriate AME Action that should be applied when the previously entered Conditions are met, see image below
e. Please see image below for completed AME Rule that shows Conditions and Actions for this AME Rule
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6. Submission of Purchase Order through Buyer Work Center using the Document Style from
screen shot above called "AME standard purchase order"
This drop down is on the right side of the page near the top when in the Orders page in the
Buyer Work Center. Choose the document style that was updated to use AME to create and
submit a purchase order that will route using the setups done for the AME Transaction Type =
Purchase Order Approval.
References
NOTE:434143.1 - How To Setup And Use AME For Purchasing
NOTE:1487661.1 - 12.1 AME : Approval, E-Review, E-Sign and Withdrawal Features for Purchase Orders
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Part 2 –Customer Case Study
2.1 Case Study Overview
Our Customer (XYZ) is using different purchasing document types that are using different approval
hierarchy based on the document type. The different Approval Hierarchies are as follow:
In case of Standard PO, The Administrator Manager should be the final document approval while for
the Contract Release PO (Standard PO referring to a Contract PO), the Finance Manager should be the
final document approval
Standard PO Contract Release PO
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2.2 Creating/ Updating PO Document Styles
To resolve the above approval hierarchies for different purchasing documents, AME should be
activated. Navigate to Purchasing Super User Responsibility Setup Purchasing Document Styles
Figure 1-Document Styles Navigation
Oracle provides two options for document styles, either to update the existing document styles or to
create new document styles. In this white paper, we will be updating the existing document style
Click on the Update Icon to check the document style setup
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Notice that in the Document Controls, AME is activated
Workflow Startup Process: PO AME Approval Top Process
AME Transaction Type: Purchase Order Approval
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2.3 Define Position Hierarchy
Prerequisites:
a. Define Jobs
b. Define Positions
c. Define Employee
d. Define Users
Based on XYZ Customer requirements, two options can be presented:
Option 1: Two position Hierarchies will be created. One for approving Standard Purchase Order
and the other one for approving Contract Release. Option 1 will be the only valid option in
case the same position (HR position) is authorized to create standard Purchase Order and
Contract Release because HR position cannot be mentioned twice in the same Hierarchy
Figure 2-Position Hierarchy for Option 1
Standard PO Contract Release PO
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For example: Department Manager 1 is authorized to approve Standard Purchase Order and
Contract Release and as per oracle functionality the one position hierarchy can't be established
as Figure 3 because Department Manager 1 Position can't be entered twice in the same
position hierarchy.
Figure 3-Same Position can't be entered in the same Position Hierarchy
Standard PO Contract Release PO
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Option 2: One Position Hierarchies will be created for approving both Standard Purchase Order
and Contract Release. This Option will be valid if each HR position is authorized to approve only
one document type (either Standard or Contract Release)
Figure 4- Position Hierarchy for Option 2
Standard PO Contract Release PO
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In Our case, Option 2 will be used and two position hierarchies will be defined:
a. AME- STD PO: To approve Standard Purchase Order
b. AME- CON REL: To approve Contract Release
Figure 5-Case Study Position Hierarchy
Note: Use position Hierarchy screen to define the position hierarchy as per
Figure 5. Make sure that default hierarchy in the document type screen is blank
Dummy Position
(Not Approving)
Finance Manager Admin Manager
Manager 1 Manager 2 Manager 1 Manager 2
AME-CON REL AME-STD PO
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2.4 Select AME Purchase Order Transaction
Figure 6-Purchase Order AME Transaction Type
(N) Approval Management Business Analyst (N) Transaction TypeEnter "Purchase Order Approval"
in Transaction Type field
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2.5 Define Attributes
Figure 7-Attributes Link
(N) Approval Management Business Analyst (N) Transaction TypeEnter "Purchase Order
Approval" in Transaction Type field Click on "Attributes"
In our case to accommodate customer requirements, One attributes will be defined and another
attribute will be updated. The defined attribute is used to identify the type of purchasing document
whether it is Standard or Contract Release Purchase Order. The updated attribute is used to call for the
specific position hierarchy structure based on the purchasing document type
Once you click on Attributes link - Figure 7, the attribute definition screen will be opened as per the
below snapshot. Click (B) create to create a new attribute
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Figure 8-Create Attribue
Once (B) Create is clicked, Create New attribute screen is opened.
The user has to enter the following details in the "Create New Attribute":
a. Name: Name of the Attribute
b. Item Class: To Identify if it's a header or line level attribute
c. Description: Description of the Attribute
d. Data Type: Number, String, Date or Currency
e. Usage Type: Static/ Dynamic. In Case of using SQL to return a value then it should be Dynamic
f. Value: SQL Statement
In our case, one attribute will be defined which is for "Contract Reference" and an attribute will be
"NON_DEFAULT_POSITION_STRUCTURE_ID"
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Contract Reference Attribute:
a. Contract Release exists, it's a Contract Release
b. Contract Release doesn't exists, it's a standard Purchase Order
Contract_Reference attribute details are as follow:
a. Name: CONTRACT_REFERENCE
b. Item Class: Line Item
c. Description: Contract Reference
d. Data Type: String
e. Usage Type: Dynamic
f. Value: select decode(pla.CONTRACT_ID,null,1,2) from po_headers_all pha, PO_LINES_ALL pla
where ame_approval_id = :transactionId
and pha.po_header_id=pla.po_header_id
and pha.org_id=pla.org_id
and rownum=1
g. SQL Explanation: Decode function (expression, search, result, default)
The function is used to search for Contract_ID "expression", in case it is null
"Search", then return "1" else return "2". That means in case of contract
release, this function will return "2" and in case of standard this function will
return "1"
Note: Transaction ID in AME is not equivalent to PO_Header_ID column, transaction ID is
equivalent to AME_Approval_id, which exists as a column in PO_HEADERS_ALL table
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NON_DEFAULT_POSITION_STRUCTURE_ID Attribute
Non-default position structure ID is used to update to call the proper position hierarchy based on the
purchasing document type.
As in our case, two-position hierarchy structure are defined which as:
a. AME- STD PO – POSITION_STRUCTURE_ID: 23127
b. AME- CON REL – POSITION_STRUCTURE_ID: 24127
Figure 9-Update NON-DEFAULT POSITION STRUCTURE ID
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Update NON_DEFUALT_POSITION_STRUCTURE_ID attribute details are as follow:
a. Name: NON_DEFAULT_POSITION_STRUCTURE_ID
b. Item Class: Header
c. Description: Structure ID of the non default HR position hierarchy, if any
d. Data Type: Number
e. Usage Type: Dynamic
f. Value: SELECT decode(DECODE(pla.CONTRACT_ID,NULL,1,2),1,23127,2,24127,null)
FROM po_headers_all pha,
PO_LINES_ALL pla
WHERE ame_approval_id = :transactionId
AND pha.po_header_id =pla.po_header_id
AND pha.org_id =pla.org_id
AND rownum =1
g. SQL Explanation: Decode function (expression, search, result, default)
The Outer decode function is used to select the proper position hierarchy
structure id based of the value of the inner decode function (either it's a
standard purchase order or contract release)
In case of returning the inner decode function a value of "1" (which is standard
purchase order), position structure id should be "23127" (which is AME- STD
PO). Rownum =1 means return only one line of the purchase order
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2.6 Define Condition
Conditions are used to evaluate the value of attributes in a particular transaction. The result of a condition can be either true or false. Conditions are precursors to AME business rules. The result of a condition helps to determine whether a business case (rule) has been satisfied. The conditions within AME can be better thought of as the "IF" part of an approval rule.
Figure 10-Condition Link
(N) Approval Management Business Analyst (N) Transaction TypeEnter "Purchase Order Approval" in Transaction Type field Click on "Conditions". To create a new "Condition" Click (B) Create
Figure 11-Create Conditions
The user has to enter the following details to create "Condition: a. Condition Type: either "Ordinary" or "Exception" b. Attribute: Select the attribute that will be linked to the condition
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c. Other: Based on the data type "String, Number, Date "of the attribute. A field will appear to ask you to enter "String Value, Number, Transaction date" based on the data type of the attribute
Figure 12-Defining Condition Process
In our Case, we are going to define two conditions
a. Contract Reference in (1): Condition for Standard Purchase Order b. Contract Reference in (2): Condition for Contract Purchase Order
Contract_Reference in (1) Condition details are as follow:
a. Condition Type: Ordinary
b. Attribute: CONTRACT_REFERENCE
c. String Value: 1
Note: String Value equals to "1" means no contract ID exist (for the case of Standard Purchase
Order)
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Figure 13-Contract_reference (1) condition
Contract_Reference in (2) Condition details are as follow:
a. Condition Type: Ordinary
b. Attribute: CONTRACT_REFERENCE
c. String Value: 2
Note: String Value equals to "2" means contract ID exist (for the case of Contract Release
Purchase Order)
Figure 14-Contract_reference (2) condition
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2.7 Define Action Types
Actions within the AME application describe the nature of what should be done in AME if a particular
condition and rule is satisfied by a transaction. It is the actions that dictate the approver list that is
generated by AME for the given transaction. Actions not only provide instruction as to who the
approvers are, but how many approvers are required for a given transaction and in what order, should
they be notified.
Action types are groupings of actions that have a similar functionality such as the approval hierarchy
that should be traversed when building an approver list (Our case). An example of this would be actions
that pertain to building an approval based solely on the supervisor tree in HR. The multiple actions for
this action type would all pertain to traversal of the supervisor hierarchy, but would express in terms of
how many levels to traverse. Typically, each action that describes how many levels of a hierarchy to
move up would be defined separate unto itself. All of the defined actions would be grouped into an
action type based on their relationship to the hierarchy being used.
Figure 15-Action Type Link
(N) Approval Management Business Analyst (N) Transaction TypeEnter "Purchase Order Approval" in Transaction Type field Click on "Action Types". To create a new "Actions", select the proper action type, then Click (B) Create.
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Figure 16-Create Action Types
In Our Case and based on the customer requirement, "HR Position" Action type will be selected as per
Figure 16.
Two actions will be created:
a. Requires approval up to HR Positions: 01.Admin Manager - approve standard purchase order
b. Requires approval up to HR Positions: 01.Fin Manager - approve contract release
Figure 17-Requires approval up to HR Positions: 01.Admin Manager
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Figure 18-Requires approval up to HR Positions: 01.Fin Manager
Note: Click the Update icon next to the actions to be able to update the position presented in
Figure 17 and Figure 18. The Position indicates the final approval for each action defined
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2.8 Define Rule(s)
Rules could arguably be considered the essential component when defining business cases for an organization. Whenever a transaction is initiated, the rules are evaluated to determine what approval path the transaction will follow when submitted for approval. Rules are defined by associating the conditions that ultimately determine whether a particular business case has been satisfied. Additionally, rules are associated with action types to determine the approval action and thus the approver list that should be generated for the transaction.
Figure 19-Rule Link
(N) Approval Management Business Analyst (N) Transaction TypeEnter "Purchase Order Approval"
in Transaction Type field Click on "Rule"
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Figure 20-Create Rule
In Our case, two rules will be defined which are:
a. AME Position Hierarchy for Standard PO
b. AME Position Hierarchy for Contract Release PO
Each Rule will be attached to a condition and action type:
a. AME Position Hierarchy for Standard PO
i. Item Class: Line Item
ii. Rule Type: List Creation
iii. Category: Approver
iv. Condition: CONTRACT_REFERENCE in (1)
v. Action Type: HR position- Requires approval up to HR Positions: 01.Admin
Manager
c. AME Position Hierarchy for Contract Release PO
i. Item Class: Line Item
ii. Rule Type: List Creation
iii. Category: Approver
iv. Condition: CONTRACT_REFERENCE in (2)
v. Action Type: Requires approval up to HR Positions: 01.Fin Manager
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Figure 21-AME Position Hierarchy Rule for Standard PO
Figure 22-AME Position Hierarchy Rule for Contract Release
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Part 3 – Test Case
3.1 Given Data for the test Case
Approval Hierarchy Manager-Approver Position
Manager User Name
Employee-Buyer Position
Employee User Name
AME- STD PO 01.Admin Manager ADMIN
MANAGER 01.Manager MANAGER
02.Manager MANAGER2
AME- CON REL 01.Fin Manager FIN
MANAGER 01.Manager MANAGER
02.Manager MANAGER2
3.2 Standard Purchase Order Cycle
1. Login with "Manager" User name
Figure 23-Standard PO/Manager Login
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2. Create Standard Purchase Order
a. (N) Purchasing Super User Purchase OrdersPurchase Orders
b. Create Standard Purchase Order
c. Click (B) Approve
d. Example Standard PO Number: 6037
Figure 24-Create Standard PO
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3. Check Purchase Order Status and Action history
a. (N) Purchasing Super User Responsibility Purchase OrdersPurchase Order
Summary
b. Enter Purchase Order Number, (B) Find
c. Check the Purchase Order Status
d. Check Action History (who is the next approver)-Admin Manager
Figure 25-Check Standard PO Status
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Figure 26-Check Action History
4. Login with Next approver- Admin Manager
Figure 27-Standard PO/Admin (Approver) Login
5. Click on Purchase Order that require your action from the Notification list
a. PO Number: 6037
b. Click (B) Approve
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Figure 28-Approving Standard Purchase Order
6. Login again with "Manager" User and check PO Number 6037
Figure 29-Standard Purchase Order Approved
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3.3 Contract Release Cycle
1. Create/Approver Contract Agreement
a. (N)Purchasing Super User ResponsibilityPurchase OrdersPurchase Orders
b. Create Contract Agreement
c. Click (B) Approve
d. Contract Number:6029
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2. Login with "Manager" User Name
3. Create Contract Release
a. (N)Purchasing Super User ResponsibilityPurchase OrdersPurchase Orders
b. Create Standard Purchase Order-6039
c. Click (T) Reference Document Refer back to the created contract in "Contract" field
d. Click (B) Approve
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Figure 30-Referring Contract Number
4. Check Contract Release Status and Action History
a. (N) Purchasing Super User Responsibility Purchase OrdersPurchase Order
Summary
b. Enter Purchase Order Number, (B) Find
c. Check the Purchase Order Status
d. Check Action History (who is the next approver)-Fin Manager
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5. Login with "FIN Manager" User name
Figure 31-Fin Manager Login
6. Approve Contract Release
a. Click on the Notification for the created Contract Release
b. Click (B) Approve
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Figure 32-Approving Contract Release
7. Login again with "Manager" User and check PO Number 6039 (Contract Release)