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Exploring the Basics of Custom Approvals

Objectives

After completing this lesson, you will be able to:

Describe Cost Object Approvals.
Access the Cost Object Approvals Configuration.

Unit Overview

This unit is tailored for Concur Expense administrators looking to customize their expense approval workflows beyond what is available on the Approval Routing page. The purpose of this unit is to provide step-by-step instructions on how to create a custom expense approval, specifically the Cost Object Approval.

By the end of the unit, you will:

Understand the concept of Cost Object Approval and its benefits.
Configure a limit-based Cost Object Approval.
Configure a level-based Cost Object Approval.
Gain valuable insights into the user, approver, and processor experiences.

Basics of Cost Object Approvals

Why Cost Object Approvals?

By routing expenses through a structured approval process, companies can ensure that all expenditures are reviewed and authorized by the appropriate personnel. This not only helps in preventing unauthorized spending but also provides a clear audit trail for financial transactions.

Moreover, cost object approvals facilitate budget management by aligning expenses with the designated cost centers. This ensures that each department or project stays within its allocated budget, thereby promoting financial accountability. Additionally, the approval process can be configured to handle different levels of authority, ensuring that higher-value expenses receive the necessary scrutiny from senior management.

Types of Cost Object Approvals

There are two main types of cost object approvals: Level-based and Limit-based. Both types aim to streamline the approval process and reduce the risk of errors.

Limit-based approvals route the expense to the approver with the necessary signing authority.
Level-based approvals follow a sequential order, moving from one approver to the next.

The Approval Routing configuration page in Concur Expense, where users define how expense reports will be routed for approval. The page features three tabs at the top: Approval Routing, Custom Workflow Setup, and Cost Object Approver List. In Step 1, users select their approval routing method from options including Processor, Manager > Processor, Manager > Second Approver > Processor, Manager > Second Approver > Manager (up to 5 levels) > Processor, and Custom Workflow (which is currently selected). Additional options include Include Budget Approver and Include routing by cost object, with the cost object set to Project. There is also a dropdown menu titled Cost object approvals based on with options Limit and Level, and Limit is currently selected. In Step 2, users choose workflow preferences such as allowing managers or employees to add another approver to the list, rerouting to the approver’s manager if a report stays pending approval for a specified number of days, and allowing employees to recall reports. The Save button is located at the top of the section.

Limit-based Approval

Approval limits are based on the amount that an approver is authorized to approve, also known as their signing authority. The approval process starts with the first approver and moves through each level until it reaches an approver whose approval limit is equal to or greater than the cost object amount. It's important to note that an approval limit must be defined for the approver to have this functionality.

Level-based Approval

Approval levels are determined by each approver's sequential position in the approval process. The cost object progresses from one level to the next until it reaches the end of the process. For instance, it may move from a junior manager to a senior manager to the company CFO.

Benefits of Cost Object Approvals

Benefits of Using Cost Object Approvals

Budget ownership

The approval process aligns with the affected budget. For example, each cost center Approver can review the entire report and either approve, partially approve, or reject the portion allocated to its budget.

Parallel processing

Each affected cost center reviews the expense report simultaneously, saving a significant amount of time and resulting in faster reimbursement for the employee.

Path to the Cost Object Approvals Configuration

From the Expense Settings page, under the Policy section, select Edit from the Expense Approvals tile.

The Concur Expense Policy configuration page. The page displays five sections: Expense Approvals, Expense Compliance, Policy Groups, Travel Allowances, and Cash Advances. Each section includes an Edit button to modify the settings. Expense Approvals is highlighted in yellow. Each section provides a brief description of its purpose, such as defining approval processes, setting expense rules, managing policy groups, configuring travel allowances, and issuing cash advances.

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