The Purchase Request Cost Object Approval feature lets you create a specialized, more detailed workflow step for accounting-related data.
The key benefits of using the purchase request cost object approval feature include:
- Budget ownership: The approval process specifically aligns with the affected budget. Each affected cost center can review the entire purchase request and approve, partially approve, or reject the portion allocated to its budget.
- Parallel processing: Each affected cost center is reviewing the purchase request at the same time. This can save a tremendous amount of time.
If an approver makes certain changes, the purchase request re-enters the approval process. This ensures that all approvers can review any updates, providing control, compliance, and visibility for every impacted cost center.
A purchase request cost object approval step can be based on either:
- Level: This type of approval is defined by each approver's sequential position in the approval process. The cost object moves from one level to the next to the next, all the way to the end of the process. For example, it moves from a junior manager to a senior manager to the company CFO.
- Limit: This type of approval is based on the amount that an approver is authorized to approve (also known as signing authority). The cost object starts with the first approver, moving from one level to the next. It stops when it reaches an approver who has an approval limit equal to or greater than the cost object amount. Note that a limit must be defined for the approver to allow them this functionality.
There is a second limit-related option: Cost Object Direct Approval. Using this option, the cost object might not start at the first approver and might not go to the end. Instead, it goes directly to the approver with the correct approval limit. In other words, the cost object's first and only stop is with the approver who has the correct limit.
A cost object approval step can be based on either level or limit, but not both.
