Purchase authorization is a functionality that is used to authorize a purchase requisition line, a purchase order and/or a purchase order change order before it is allowed to continue in the procurement process. The parameters that control which requisitions and orders should be authorized are defined by the authorization rules: a purchase requisition authorization rule, a purchase order authorization rule, or an approved suppliers list. The purchase order authorization rule is also valid for the purchase order change orders. The authorization rules are checked and the authorization routing template is retrieved to the purchase requisition line when it is released, i.e., the requisition line gets the Released status but cannot be converted to a purchase order unless it is authorized. For a purchase order, the authorization rules are checked and the authorization routing template is retrieved once you try to release the order, i.e., the purchase order will remain in the Planned status until it is authorized. You can also check the rules by using the Fetch Authorization Template option on the right-mouse button menu on the purchase order. For a purchase order change order, the authorization rules are checked and the authorization routing template is retrieved to the change order when it is released, i.e., the change order gets the Released status but it is not allowed to update the purchase order with the changes unless the change order is authorized. After authorizing the purchase order, the authorization rule is again re-fetched during release, confirmation, printing/sending. Note: At the time of performing the receipt, no new authorization rule is re-fetched; however there is a check to see that the purchase order has been authorized. During the time of releasing, confirming, printing/sending if there are no valid authorization rules, then the existing authorization data will be removed. If a new authorization rule is re-fetched, the purchase order needs to be authorized again.
It is important to remember that the authorization rules must be released in order to be used.
The changes that affect the total amount of the line can be restricted by the Allow Changes to Requisitions option on the Company/Distribution/Purchasing tab for the fully or partially authorized requisitions. If this option is not selected, you cannot make any amendments that effect the total amount of the purchase requisition lines. However, other changes will still be allowed.
The changes that affect the total amount of the line can also be restricted by the Allow Changes after Authorization list in the Purchase Order Authorization Rule page for the fully or partially authorized purchase orders. Possible values are:
Note: Purchase order authorization is bypassed if the demand code of the purchase order line is an MRO type.
Before you can use the purchase authorization functionality, you should first enter the basic data. The people who are allowed to authorize purchase requisitions and/or purchase orders must have been entered as authorizers. Authorizers can be used as control types in posting control. There are six different ways to organize the authorizers:
Authorization routing templates are connected to each authorization rule and determine which authorizers, authorization groups, project roles, positions, buyers and requisitioners are responsible. Each template sets up steps for the different authorizers, authorization groups, project roles, positions, buyers and requisitioners. By entering different step numbers, you can define the order of purchase authorization (the person/group with the lowest number has to authorize first).
Routing Template 1 (TEMPL-1)
| Step No. | Authorization Type | Authorizer ID | Authorization Group ID | Project Role | Position |
| 10 | Group | BOSS-GRP |
Routing Template 2 (TEMPL-2)
| Step No. | Authorization Type | Authorizer ID | Authorization Group ID | Project Role | Position |
| 10 | Individual | BOSS-1 |
Routing Template 3 (TEMPL-3)
| Step No. | Authorization Type | Authorizer ID | Authorization Group ID | Project Role | Position |
| 10 | Individual | BOSS-1 | |||
| 20 | Individual | BOSS-2 |
Routing Template 4 (TEMPL-4)
| Step No. | Authorization Type | Authorizer ID | Authorization Group ID | Project Role | Org Code | Position |
| 10 | Project Role | PM | ||||
| 20 | Position | HR | MGR | |||
| 30 | Position | % | CEO |
When a position
is used in an authorization routing template, it is also possible to indicate
whether a position in a specific Org Code can authorize. If an org code is indicated,
persons who are assigned with the indicated position, within indicated Org Code
will only be allowed to authorize.
The authorization group BOSS-GRP consists of BOSS-1 and BOSS-2. When TEMPL-1 is used, either one of the authorizers in the BOSS-GRP can authorize. As soon as one has authorized, the requisition line or order can continue in the process.
When TEMPL-2 is used, BOSS-1 alone has to authorize.
When TEMPL-3 is used, BOSS-1 will have to authorize before BOSS-2. Both BOSS-1 and BOSS-2 will have to authorize. The status will be Partially Authorized if only one authorizer has authorized the purchase order.
BOSS-3 is assigned to the project role PM (project manager)
in project P100. BOSS-4 is assigned to the position
MGR in company 10
within Org Code HR.
In this case authorization is intended
to be limited to position MGR within a specific Org Code, column org code value
can be used to filter. BOSS-5
is assigned to the position CEO.
Any person holding position CEO within
any Org Code is allowed to authorize. When TEMPL-4 is used for a purchase
requisition line or a purchase order (header) that is connected to the project
P100 which is connected to company 10, BOSS-3 will have to authorize before
BOSS-4. As the last step BOSS-5 can
authorize.BOSS-3 , BOSS-4 and BOSS-5 will have to authorize in order.
Note: It is possible to enter the same step number for more than one line. This means that all authorizers/authorization groups have to authorize, but there is no restriction in the order of authorization between the steps with the same number.
Authorization rules for purchase requisitions are created in the Purchase Requisition Authorization Rule page. The page contains different tabs; the General tab is for general information while all other together specify the criteria for the authorization rule.
In the General tab, you have to specify which authorization routing template is to be used for the rule and which type of purchase requisition the rule is to be used for. By entering the wildcard %, you can make the rule apply to both order types. Furthermore, you can indicate the interval for the amount for which the rule is to be used. The default value for the minimum amount is zero (0). If you do not enter a maximum amount, the rule will be applicable to all amounts larger than the one specified in the Minimum Amount field. Besides this information, there are a few check boxes. The Allow Changes after Authorization option will be used to decide whether the user can do any amendments that affects total amount of the requisition lines or not. The Allow converting to RFQ option is used to decide whether the user can convert the unauthorized requisition into a request for quotation or not.
The Apply for Non Project Connected PR option is used to decide whether or not the rule should be used for requisition lines that are connected to a project. If the option is enabled, the rule will be used for requisition lines with or without project connections.
The Include All Steps in Authorization option is used to decide if all steps (lines) in the authorization routing template should be included in the authorization or not. If this option is disabled only steps up to authorizers with enough authorization limit for the purchase requisition line amount will be included in the authorization. Authorization limits for the authorizers are not considered when selecting this option.
Other options are used if you do not want to specify one or more of the other possible criteria. For more details, refer to the criteria descriptions below.
In the Requisitioners tab, you can specify for which requisitioner the rule is to be used.
If you select the Apply to All User Defined Requisitioners option in the General tab, the rule will be used for all user defined requisitioners.
If you select the Apply to All System Defined Requisitioners check box in the General tab, the rule will be used for all system defined requisitioners.
You can also select the option in the General tab and enter system-created requisitioners in the Requisitioners tab for the same authorization rule.
In the Suppliers tab, you can specify for which suppliers the rule is to be used.
If you select the Apply Regardless of Supplier option in the General tab, the rule will apply to all suppliers. If the option is selected, the Suppliers tab will be disabled.
In the Purchase Groups tab, you can specify for which purchase groups the rule is to be used.
If you select the Apply Regardless of Purchase Group option in the General tab, the rule will be applied to all lines, whether or not they specify a purchase group. If the option is enabled, the Purchase Groups tab will be disabled.
In the Pre Postings tab, you can indicate combinations of code parts for which the rule is to be used. When a new authorization rule is created, a line with the wildcard % in each of the ten code parts will be created. This implies that the rule is to be applied to all purchase requisition lines, regardless of the pre-posting for any of the code parts. You can then edit the existing line and enter more lines if necessary. The wildcard % for a code part indicates that the rule applies to all possible values for the specific code part, as long as the other code parts on the line also match the purchase requisition line pre-posting.
Note: There should always be at least one line in the Pre Postings tab.
In the Project Category 1 tab, you can specify the project category 1 for which the rule is to be used.
If you select the Apply Regardless of Project Category 1 option in the General tab, the rule is applied to purchase requisition lines, whether or not they specify a project category 1. If the option is enabled, the Project category 1 tab will be disabled.
In the Project Category 2 tab, you can specify the project category 2 for which the rule is to be used.
If you select the Apply Regardless of Project Category 2 option in the General tab, the rule is applied to purchase requisition lines, whether or not they specify a project category 2. If the option is enabled, the Project category 2 tab will disabled.
In the Projects tab, you can specify the projects for which the rule is to be used.
If you select the Apply Regardless of Project option, in the General tab, the rule is applied to all lines, whether or not they specify a project. If the option is enabled, the Projects tab will be disabled.
On the Buyers tab, you can specify the buyer for which the rule is to be used. If you select the Apply Regardless of Buyer option in the General tab, the rule is used for all buyers. If the option is enabled, the Buyers tab is disabled.
| RULE-1 | RULE-2 | RULE-3 | RULE-4 | |
| Site | NY | NY | NY | NY |
| Priority | 3 | 2 | 1 | 4 |
| Currency | USD | USD | USD | USD |
| Order Code | 1 | 1 | 1 | 5 |
| Minimum Line Amount | 1000 | 10000 | 50000 | 500 |
| Maximum Line Amount | ||||
| Requisitioners | JACK | JACK | Apply to All User Defined Requisitioners | JACK |
| Suppliers | SUPP-1 | SUPP-1 | Apply regardless of Supplier | Apply regardless of Supplier |
| Purchase Groups | Apply regardless of Purchase Group | Apply regardless of Purchase Group | Apply regardless of Purchase Group | Apply regardless of Purchase Group |
| Pre Postings | %*10 | %*10 | %*10 | %*10 |
| Template ID | TEMPL-1 | TEMPL-2 | TEMPL-3 | TEMPL-1 |
The templates are the ones described above in the example of authorization routing templates.
The requisitioner JACK creates a purchase requisition with order code 1 at site NY. He enters four purchase requisition lines with the following attributes:
| Line No | 1 | 2 | 3 | 4 |
| Part/No Part | PART-1 | PART-2 | NOPART-2 | PART-1 |
| Supplier | SUPP-1 | SUPP-2 | SUPP-2 | SUPP-1 |
| Line Amount | 20000 | 60000 | 10000 | 2000 |
Based on the authorization rules and authorization routing templates described above, the following is retrieved to the lines when they are released:
| Line No | 1 | 2 | 3 | 4 |
| Authorization Rule | RULE-2 | RULE-3 | – | RULE-1 |
| Authorization Routing Template | TEMPL-2 | TEMPL-3 | – | TEMPL-1 |
| Authorizers/Authorization Groups | BOSS-1 | BOSS-1 & BOSS-2 | – | BOSS-GRP |
This means that BOSS-1 will have to authorize line numbers one and two. BOSS-2 will have to authorize line number two. Either BOSS-1 or BOSS-2 will have to authorize line number four.
Authorization rules for purchase orders are created in the Purchase Order Authorization Rule page. The page contains different tabs; the General tab is for general information while all other together specify the criteria for the authorization rule.
In the General tab, you have to specify which authorization routing template is to be used for the rule. Furthermore, you can indicate the interval for the amount for which the rule is to be used. The default value for the minimum amount is zero (0). If you do not enter a maximum amount, the rule is applicable to all amounts larger than the one specified in the Minimum Amount field. Besides this information, there are some options.
The values in the Allow Changes after Authorization list are used to decide whether you are able to make any amendments that affect the total amount of the fully or partially authorized purchase order. Possible values are No Changes Allowed, Within Order Amount and Within Authorizer Limit.
The Use Delta Amt. for Change Orders option is used to decide whether the full amount or the changed amount should be used since the last revision in the authorization of the purchase order. This is only available if the authorization rule is valid for change order authorization.
The Include Charge Amounts option is used to decide whether charge amounts should be included in the amount to authorize or not.
The Apply for Non Project Connected PO option is used to decide whether or not the rule should be used for purchase orders (headers) that are not connected to any project. If the option is enabled, the rule will only be used for purchase orders without project connection in the header.
Select the Valid for Original Authorization option if you want the rule to be used for authorization of the original purchase order revision. Select the Valid for Change Order Authorization option if you want the rule to be used for authorization of purchase order change orders. One of these options needs to be selected.
The Include All Steps in Authorization option is used to decide whether or not all steps (lines) in the authorization routing template should be included in the authorization. If this option is disabled only steps up to authorizers with enough authorization limit for the purchase order amount will be included in the authorization. Authorization limits for the authorizers are not considered when selecting this option.
Other options are used if you do not want to specify one or more of the other possible criteria. For more details, refer to the criteria descriptions below.
In the Buyers tab, you can specify the buyer for which the rule is to be used.
If you select the Apply Regardless of Buyer option in the General tab, the rule is used for all buyers. If the option is selected, the Buyers tab is disabled.
In the Suppliers tab, you can specify the suppliers for which the rule is to be used.
If you select the Apply Regardless of Supplier option in the General tab, the rule applies to all suppliers. If the option is selected, the Suppliers tab is disabled.
In the Suppl Stat Grp tab, you can specify the supplier statistic groups for which the rule is to be used.
If you select the Apply Regardless of Suppl Stat Group option in the General tab, the rule will be used for all suppliers independent of the supplier statistic group they belong to. If the option is enabled, the Suppl Stat Grp tab is disabled.
In the Coordinators tab, you can specify the coordinators for which the rule is to be used.
If you select the Apply Regardless of Coordinator option in the General tab, the rule applies to all coordinators. If the check box is selected, the Coordinators tab is disabled.
In the Project Category 1 tab, you can specify the project category 1 for which the rule is to be used.
If you select the Apply Regardless of Project Category 1 option in the General tab, the rule is applied to purchase orders, whether or not they specify a project category 1. If the option is enabled, the Project category 1 tab is disabled.
In the Project Category 2 tab, you can specify the project category 2 for which the rule is to be used.
If you select the Apply Regardless of Project Category 2 option in the General tab, the rule is applied to purchase orders, whether or not they specify a project category 2. If the option is enabled, the Project category 2 tab is disabled.
In the Projects tab, you can specify the projects for which the rule is to be used.
If you select the Apply Regardless of Project option in the General tab, the rule is applied to all purchase orders, whether or not they specify a project. If the option is enabled, the Projects tab is disabled.
| Authorization Rule | PO RULE-1 | PO RULE-2 |
| Site | NY | NY |
| Priority | 2 | 1 |
| Currency | USD | USD |
| Supplier | SUPP-1 | % |
| Supplier Statistical Group | % | SSG1 |
| Minimum Amount | 2500 | 5000 |
| Maximum Amount | ||
| Coordinator | % | % |
| Buyer ID | % | % |
| Routing Template ID | TEMPL-2 | TEMPL-3 |
The supplier SUPP-1 is part of the supplier statistical group SSG1, and the templates are the ones described above in the example of authorization routing templates.
If there is a purchase order with SUPP-1 as the supplier and the total order amount is $7500, the PO RULE-2 (with TEMPL-3) applies since the priority is higher than for PO RULE-1 (with TEMPL-2). This means that both BOSS-1 and BOSS-2 will have to authorize the purchase order.
If, on the other hand, the amount were between $2500 and $4999, only BOSS-1 would have to authorize the purchase order.
If more than one released authorization rule matches the criteria of the purchase requisition line or purchase order, the rule with the highest priority (lowest number) will be used. It is not possible to have two authorization rules of the same kind with the same priority in status Released at the same site. However, when the old rule is closed, it is possible to release a new rule with the same priority.
For a purchase order you can select the Fetch Authorization Rule in the Operations menu, which will check whether any released authorization rules fulfill the requirements and replace the previously applied rule and corresponding authorization routing template with the new one. This will also override a possible manually selected authorization routing template.
If the Allow Manual Update of Authorization Routing option is enabled on the Company/Distribution/Purchasing tab, it is possible to manually connect an authorization routing to a purchase order or purchase order change order even if you have a rule set up to fetch authorization rules to the purchase order or purchase order change order. It is also possible to manually connect a routing before the rule applies to the order.
In case you have no rules defined for the site, it is possible to select an authorization routing manually instead, by using the Select Authorization Routing Template right mouse button option in the Purchase Order or Purchase Order Change Order pages. This option can be used in a start-up phase before authorization rules have been defined and is preferably combined with selecting the Enforce Purchase Order Authorization option on the Company/Distribution/Purchasing tab.
Approved suppliers lists are created in the Approved Suppliers List page.
Unlike the purchase requisition authorization rule and the purchase order authorization rule, the approved supplier list has nothing to do with the amount on the requisition/order. Instead, the purpose of this list is for quality assurance authorization, and thus the quality assurance department will most likely maintain the list. For example, in the aviation industry where the requirements for aircraft part suppliers is very high, this list could be used to streamline authorized purchases. If the supplier has been approved, the flow will proceed without any stops. However, if the supplier is not approved or the expiration date for the approval has exceeded, the quality assurance department will be notified and an authorized member of that department must confirm that the purchase can proceed.
When you define an approved supplier list, you define it for the site and purchase group combination. You will connect an appropriate authorization routing template to the record for the site-purchase group combination. After the authorization routing template is connected, you can add suppliers to the list. If the supplier has an Approved status and the expiration date for the approval (the value in the Approved Until field) has not passed, purchases from this supplier will not require further authorization. In all other cases, any purchase requisition lines and purchase orders containing lines on the site with the purchase group must be authorized before they can continue in the procurement flow.
After suppliers are added to the list, you can approve them, remove approval, delete the supplier from the approved suppliers list. All these events are saved in the history record, which can be viewed at any time, either from the approved supplier list or via the history page that is reachable from the IFS Cloud Navigator. If a supplier is removed and then added again, the old history will continue to be available.
When using an unapproved supplier for a purchase part that will fall under an approved suppliers list in requests for quotation, quotations, and supplier agreements, the user will receive an information message, but can continue with the process. It is only on purchase requisitions and purchase orders that the flow will be stopped until the purchase has been authorized.
The authorization of a purchase requisition line is performed in the Purchase Requisition/Authorization tab. The authorization is accomplished through the Operations menu and will be performed for all lines that the authorizer is supposed to authorize at once. When the lines are authorized, the name of the authorizer and the date will be entered in the corresponding columns. You can check the value in the Authorization Rule Origin field to determine whether the purchase has been authorized through a purchase requisition authorization rule or an approved suppliers list.
For a purchase order, the authorization is done either in the Purchase Order/Authorization tab. The authorization is performed through the Operations menu. When the order is authorized, the name of the authorizer and the date will be entered in the corresponding columns. You can check the value in the Authorization Rule Origin field to determine whether the purchase has been authorized through a purchase order authorization rule or an approved suppliers list.
For a purchase order change order, the authorization is done in the Purchase Order Change Order/Authorization tab. The authorization is performed via the Operations menu. When the order is authorized, the name of the authorizer and the date will be entered in the corresponding columns.
A person can only authorize those requisition lines and purchase orders for which he/she has permission.
It is possible for an authorizer to remove his/her authorization. This is also performed as a right mouse button choice in the same pages where the authorization can be done. When the authorization is revoked, the signature and date will be removed for the authorizer or authorization group. Note that any person that can authorize/acknowledge an authorization line can also revoke the authorization on this line. The status of purchase requisitions will also be changed by the revoked authorization.
Purchase requisition lines that have not been converted into a purchase order, and purchase orders in status Planned, Stopped, Released or Confirmed and purchase order change orders in status Released or Authorized can have their authorization revoked. It is not possible to revoke the authorization of a purchase requisition line that is in the Request Created status.
If the person or persons responsible for authorizations are out of the office (e.g., on vacation or sick leave), others can process purchase requisitions and/or purchase orders without authorization. This is done via a right mouse button menu option in the Purchase Requisition/Authorization tab for purchase requisitions, in the Release Unauthorized Purchase Order page for purchase orders or in the Purchase Order/Authorization tab for purchase orders and purchase order change orders. The access to the right mouse option for purchase requisitions and to the page for purchase orders and change orders is granted when the security for the system is set up.
If the person or persons responsible for authorizations are not available, a way to supersede the authorization is instead to forward the authorization step to another person. This is done through a right mouse button option in the Purchase Requisition/Authorization tab for purchase requisitions, in the Purchase Order/Authorization tab for purchase orders and purchase order change orders. If the authorization step you want to forward to another person requires an authorizer role you can only forward this step to an authorizer with sufficient authorization limit.
You can define one or several substitutes for an authorizer for a specific period e.g., a vacation period. This is performed through a right mouse button option against the selected authorizer in the Purchase Authorization Basic Data/Authorizers tab. The substitute authorizer will inherit the authorization permissions from the authorizer who is being substituted.
It is possible for an authorizer who is able to authorize a step to instead reject his/her authorization step. This is also performed as a right mouse button option in the same pages where the authorization can be done. When the authorization is rejected, all authorization lines are removed and the purchase requisition, purchase order or purchase change order is updated with e.g., the Rejected By, Rejected Date, Reject Reason and the Authorization Rejected option will be selected. This enables the originator to follow up on his/her rejected requisitions and orders. For a purchase order the information about the rejection is updated in the Purchase Order/Order History tab as well.