Setting up for approval of purchase order increases

ISSUE: How to configure and approve PO changes where the value is increased

Solution:

To configure the system to go out for approval when the value of a purchase order is increased:

1. In Settings à Purchasing, select the PO Change Approval tab
   1. Click Edit
   2. Check the Implement PO Change Approval Process check box
   3. Define either a dollar amount or a percentage amount; any PO change that exceeds this amount will require approval before the change is applied to the PO.  (Add a note and Save.)
      
      
2. In Batch à Batch Code Management, create a new batch code, set up identically to batch codes with usage Purchase Order except    
   1. Batch Code Usage will be Single Usage Only
   2. From the drop down below this usage, select PO Change From Voucher

Save the batch code.

1. Now whenever the value of a PO is increased, the system will respond with an additional prompt saying “This purchase order change requires voucher creation. Do you agree to create a new voucher?”.  This will happen if all of the following conditions are met:

• The purchase order originated from a requisition
• The PO Change Approval Process has been implemented (in Settings à Purchasing à PO Change Approval)
• The increase exceeds the $ or % guidelines in the above-mentioned setting.
  
  

When this happens, the PO change will not immediately come into effect; rather, by adding an additional note and clicking Agree, the changes are held, pending voucher approval. Neither Budget Query nor PO Inquiry will show any of the changes during this time. As soon as the voucher is approved, all changes will be posted.

1.  At this point, it will be necessary to contact the appropriate approver, reference the PO number and request that they review the proposed change.  To do this they will:
   1. Go to Purchasing à PO Voucher Review
   2. On the line containing the PO number, they can
      1. Click on the Requisition # to see what it looked like at the time it was processed to a PO
      2. Click on the PO # to see what it currently looks like
      3. Click on the Voucher # to see what the PO will look like once the changes are approved
   3. To approve the change, simply select Approve from the action drop-down on that line (or reject to not approve).
   4. Once the change voucher is approved, the financial transactions will be posted to the batch code referenced in Step 2 above, using the fiscal year and period currently signed into, and using the current date as the batch sequence number.

Please log a ticket with Edsembli FIN if you have any questions, comments or concerns with the above.