Setup of Approval Hierarchies – Position

For Approval of Purchase Order Documents we can set Hierarchies.

There are 2 types of Hierarchies which are mainly used
1.Employee-Supervisor Hierarchy
2.Position Hierarchy

Here we will see the setting of Position Hierarchy and approval of Purchase Order Using the Same.

To Set up PositionHierarchy we need to set up the following :

➢ Define Employee
➢ Define Job
➢ Define Position
➢ Assign Job and Position to the Employee
➢ Define Approval Groups
➢ Assign Approval Groups to Position
➢ Define Position Hierarchy
➢ Define Buyer
➢ Define User
➢ Run Report “Fill Employee Hierarchy”

We will take the below users in our Example

Create Employee

(N)HRMS Responsibility > People > Enter and Maintain

Click (B) New

Create all the four Employees as mentioned above.

Define Job

(N) HRMS Responsibility > Work Structures > Job >Description

Click (B) New

Similarly define 3 more Jobs for Director, VP and President.
Define Position

(N) HRMS Responsibility > Work Structures > Position >Description

Click (B) New

Similarly Define 3 more Positions for Director, Vice President and President.

Assign Job and Position to the Employees

Query the Employees Created earlier and Click on

(B)Assignment

Place the Cursor in the Position Field and from the LOV select the appropriate position.
Define Approval Groups

(N) Purchasing Responsibility > Set up > Approvals > Approval Groups
Assign the Approval Group to respective Positions

Similarly Assign the Other Positions to the respective approval Groups.

Define Position Hierarchy

In the Subordinates region click on Down Arrow

Observe that now “0812.VP12” is in the Position block
Again ,in the subordinates region click on Down Arrow
Verify “Use Approval Hierarchy “Option is enabled in the Financial Options .

This is where the choice is made. If the box is checked, Hierarchies are used. Otherwise “Employee-
Supervisor “ hierarchy will be used

Set the above defined Position Hierarchy as “Default Hierarchy” for a Document Type.
Choose Forward Method as “Hierarchy”.
Here we will choose “Standard Purchase Order” as the document type
Run the request “Fill Employee Hierarchy”
Define “Terry_Clerk” as Buyer

(N) Purchasing > Setup > Personnel > Buyers

Click (B) Add Buyer

Define all the 4 Employees as Users in Oracle Application and Assign Purchasing Responsibility

(N) System Administrator > Security > User >Define

Give a User Name and Attach the Employee in the Person Field
Create a Purchase Order of 5000 USD

Submit the document for Approval

Login with “Smith_Dir” and check the notification for PO approval

(N)Purchasing Responsibility > Notification Summary

Click on “Approve” Button

Query the Purchase Order from Purchase Order Summary Form

From Tool Bar “Inquire > View Approval through Workflow “observe the progress of
the Purchase Order.
Observe that the PO has been forwarded to “Doe_VP”who is next in the line of Approval.
Login into the application with “Doe_VP” and check the PO notification

Click on “Approve” Button

Observe that the PO has been forwarded to “Jane_Pr “who is next in the line of Approval.

Login into the application with “Jane_Pr” and check the PO notification
Observe the Approval Sequence

Approve the Purchase Order.

Query the Purchase Order. Observe the status of the Purchase Order and view Action History.