Enter Purchase Order Authorization Rule

Explanation

Purchase Order Authorization Rule page is used 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 rules 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. A closed rule can be set again to Planned status with Changed to Planned in the header.

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 option.

The approval rule can have one of three status: Planned, Released, and Closed. 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 option is 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.

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

The Use Delta Amounts for Authorization 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.
Using delta amounts in a rule will only consider positive delta amounts. When a change order is having a negative delta amount the rule will not be considered.
If there are changes in the order not influencing the delta amount so it will be zero (for example a change in delivery information), the rule will not be considered neither. The exception for this will be if you have a setup at the company level Company/Supply Chain Information/Procurement tab and enable Enforce Order Authorization toggle; then zero delta amount will be considered.

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.

The Allow Automated Price Updates option determines whether you permit the updating of authorized purchase orders with new prices from the supplier agreement using the Update Price on Orders job. Enabling this option means that updates from the agreements will be allowed on both authorized orders and change orders, regardless of the Allow Changes After Authorization setting.

Apply for Non Project Connected PO indicates if this rule should be applicable for purchase orders or purchase order change orders which are not connected to a project.

Authorization Routing Option determines how the system includes steps (authorization lines) and validate steps in the authorization routing template to the authorization routing on the purchase requisition line or purchase order.

• Include Steps Based on Limits - The system will only generate authorization steps until a step with enough authorization limits to authorize the purchase order or requisition line that has been reached.
• Include All Steps and Consider Limits - The system will copy all the steps in the authorization routing template and validate the authorization limit of the last step while authorizing the purchase order or purchase requisition.
• Include All Steps do not Consider Limits - The system will copy all the steps in the authorization routing template without validating the authorization limit of the last step while authorization in the purchase order or purchase requisition.

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 option is enabled, 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.

Pages

Purchase Order Authorization Rule

Activity Diagrams

BDR for Purchase Authorization