Managing a Limit-Based Approval

Objective

After completing this lesson, you will be able to configure a limit-based cost object approval.

Limit-Based Approval workflow - Overview

Limit-Based Approval workflow - Overview

A flowchart illustrating a limit based cost object approval step process. Here are all the elements: 1. Employee: Submits the report. 2. Line Manager: Checks for legitimacy and basic errors. 3. Start: The process begins here. 4. Cost Centers. Cost Center 1. Dave. Approves up to $100. Terry. Approves up to $500. Lisa. Approves up to $1000. Cost Center 2. Cindy. Approves up to $100. Tran. Approves up to $1500. Craig. Approves up to $2000. Cost Center 3. Finn. Approves up to $50. Alecia. Approves up to $250. Mark. Approves up to $750. 5. The approval process is completed. 6. Processor. Completes the process.

Limit-based approvals in Concur streamline the expense report workflow by routing cost objects to the appropriate Approvers based on their signing authority. When an expense report is submitted, it moves through the approval process until it reaches an Approver with the necessary limit to approve the total amount. This ensures that only those with the proper authority can approve significant expenses, maintaining control and compliance.

Establishing Approval Thresholds

Setting approval limits is a crucial step in managing the cost object approvals effectively. By defining specific thresholds, organizations can ensure that expenses are reviewed and approved by the appropriate personnel with the necessary authority. This not only streamlines the approval process but also enhances compliance and control over financial transactions.

When configuring approval limits, it is important to consider each Approver's roles and responsibilities. The system must be set up to route expenses to the Approver with the correct signing authority, ensuring that no steps are skipped. Additionally, organizations can use direct approval options to expedite the process by sending the expense directly to the Approver with the required limit, bypassing unnecessary intermediate steps (direct approvals).

Configuring Direct Approvals

Caution

The Cost Object Direct Approval feature must be enabled by SAP Concur Customer Support.

In cases where the Cost Object Direct Approval option is enabled, the expense report bypasses intermediate Approvers and goes directly to the Approver with the correct limit. This can significantly speed up the approval process, reducing the time employees wait for reimbursement. However, if no Approver with the required limit is found, the system generates an exception, and the report is escalated to higher authorities for resolution.

When configuring direct approvals, it is essential to ensure that the correct limits are assigned to each Approver. If an Approver's limit changes, the system automatically adjusts the workflow to reflect the new limit. This ensures that the cost object is always approved by an Approver with the appropriate authority, maintaining compliance and efficiency in the approval process.

Note

It is important to note that there can only be one cost object approval step, but the limits and number of Approvers within the cost object approval step are configurable.

Caution

If an Approver changes the cost object or the amount, the system terminates all active workflow instances and restarts the approval process for the updated cost object. This action is logged in the Audit Trail, and the initiating Approver must provide a comment that is visible to all other Approvers. Also, the system recalculates the report totals to reflect the changes.

How to Set Up a Limit-Based Approval

Setting up a Limit-based Approval workflow ensures that the expense reports are routed to the appropriate Approvers with the required approval limit amount, streamlining the approval process.

Follow these steps to set up a Limit-based Approval workflow. We'll walk you through each part of the process, complete with detailed instructions and screenshots to help you along the way.

Once you complete these steps, a demo video is available at the end to reinforce what you've learned and provide a quick recap.

Steps

  1. On the Approval Routing page, choose Custom workflow from the Step 1. Select your approval routing section.

    The Approval Routing configuration page in Concur Expense. The page is titled Approval Routing and includes options for defining how expense reports will be routed for approval. There are three tabs at the top: Approval Routing, Custom Workflow Setup, and Cost Object Approver List. The first step involves selecting the approval routing method, with options such as 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. The second step involves choosing 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 for a specified number of days, and allowing employees to recall reports. The Save button is located at the top of the section.

  2. Select one of the custom fields available from the list of the Include routing by cost object? field. For this example, we will use Projects.

    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 such as 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 a dropdown menu showing choices like Business Unit, Client, Feature, New Location, Division, and Project. 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.

  3. Confirm you want to perform this change by selecting the Change cost object routing button.

    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 a dropdown menu showing choices like Business Unit, Client, Feature, New Location, Division, and Project. 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. A warning popup is displayed in the center of the screen, stating, WARNING! You are about to change cost object routing, and explaining the consequences of changing the source list and segments for this hierarchy. The popup includes a Change cost object routing button and a Cancel button.

  4. Select the cost object type. To define the approval structure for cost objects, choose Limit from the Cost object approval is based on field.

    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.

  5. Select Save to enable these changes.

    The Approval Routing configuration page in Concur Expense, where users define how expense reports will be routed for approval. At the top, there are three tabs: 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. The current selection is Custom Workflow. Additional options in this step 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 the option Limit 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.

  6. On the Custom workflow Setup tab, adjust the workflow steps, including reordering the steps using the arrows.

    The Approval Routing configuration page in Concur Expense, specifically within the Custom Workflow Setup tab. The page allows users to define how expense reports will be routed for approval. There are three tabs at the top: Approval Routing, Custom Workflow Setup, and Cost Object Approver List. The section displayed is focused on defining the steps in the approval workflow, with two sub-tabs labeled Steps and Step Rules. A list of steps is shown in a table format with columns for Step Name and Role. The steps listed include Report Submitted (System), Manager (Expense Approver), Cost Object Approval (Cost Object Approver), Officer Review (Expense Processor), Prepayment Validation (System), and Processing Payment (System). The Cost Object Approval step is highlighted, and there are arrow buttons on the left side of the table for reordering the steps. The highlighted step is currently between the Manager and Officer Review steps. Above the table, there are buttons labeled New, Modify, and Remove for managing the workflow steps. At the bottom right of the page, there are Previous, Next, and Done buttons for navigation.

    Note

    The option to bypass sending the expense report to a direct manager is available, allowing your company to streamline the approval process based on specified limits. If you're interested in using this option, contact SAP Concur Customer Support for assistance.

  7. Select the Cost Object Approver List tab. This page is where you define how Concur Expense will route expense reports for approval.

    The Approval Routing configuration page in Concur Expense, specifically within the Cost Object Approver List tab. The page allows users to define how expense reports will be routed for approval. There are three tabs at the top: Approval Routing, Custom Workflow Setup, and Cost Object Approver List, with the Cost Object Approver List tab currently selected. The section displayed focuses on defining the steps in the approval workflow, with two sub-tabs labeled Steps and Step Rules. A table lists the steps in the workflow with columns for Step Name and Role. The steps listed include Report Submitted (System), Manager (Expense Approver), Cost Object Approval (Cost Object Approver), Officer Review (Expense Processor), Prepayment Validation (System), and Processing Payment (System). Arrow buttons on the left side of the table allow users to reorder the steps. Above the table, there are buttons labeled New, Modify, and Remove for managing the workflow steps. Navigation buttons labeled Previous, Next, and Done are located at the bottom right of the page.

  8. Select the arrow for the Global field to open the list with available projects.

    The Approval Routing configuration page in Concur Expense, currently within the Cost Object Approver List tab. This page allows users to define how expense reports will be routed for approval. At the top, there are three tabs: Approval Routing, Custom Workflow Setup, and Cost Object Approver List, with the Cost Object Approver List tab selected. A checkbox labeled Include All Groups below Selected Group is present, along with a search field to filter child items. A hierarchical list titled Global is expanded, displaying sub-items labeled Project 1 (P1), Project 2 (P2), Project 3 (P3), Project 4 (P4), Project 5 (P5), and Project 6 (P6). To the right of the list, a table with columns for Group, Approver, Authorized Currency, Approval Limit, and Level is shown, although it is currently empty. Above the table, there are buttons labeled New, Modify, and Remove for managing the approval groups.

  9. Choose the appropriate project from the list. Select New.

    The Approval Routing configuration page in Concur Expense, currently within the Cost Object Approver List tab. This page allows users to define how expense reports will be routed for approval. At the top, there are three tabs: Approval Routing, Custom Workflow Setup, and Cost Object Approver List, with the Cost Object Approver List tab selected. A checkbox labeled Include All Groups below Selected Group is present, along with a search field to filter child items. A hierarchical list titled Global is expanded, displaying sub-items labeled Project 1 (P1), Project 2 (P2), Project 3 (P3) highlighted in yellow, Project 4 (P4), Project 5 (P5), and Project 6 (P6). To the right of the list, a table with columns for Group, Approver, Authorized Currency, Approval Limit, and Level is shown, although it is currently empty. Above the table, there are buttons labeled New, Modify, and Remove for managing the approval groups. New button is highlighted in yellow.

  10. On the New Cost Object Approver window, in the Approver field, type the name of the Approver who is assigned to review and approve the expense report for that specific project. Select the Approver's name when it appears.

    A user interface dialog box titled New Cost Object Approver. The dialog box contains several fields for setting up a new approver. The first is labeled Group and is an uneditable field displaying Global-Project 3. Below that is the Approver field, where the user can type to search for an approver. In this example, arra has been typed, and a suggestion Arranda, Jack appears. The next section is labeled Approval Limit and contains two fields: Currency, which is a dropdown menu labeled Select one for choosing the currency, and Amount, which is a text field with the default value 0 for specifying the approval amount. Bellow the Approval Limit section is a Level field for indicating the approval level. At the bottom of the dialog box, there are two buttons: a Cancel button on the left and a Save button on the right.

  11. Under the Approver Limit section, set the currency and the amount the Approver can approve within their authority.

    A user interface dialog box titled New Cost Object Approver. The dialog box contains several fields for setting up a new approver. The first is labeled Group and is an uneditable field displaying Global-Project 3. Below that is the Approver field, populated with Arranda, Jack. The next section is labeled Approval Limit and contains two fields: Currency which is set to US Dollar from a dropdown menu and Amount, which is a text field displaying the value 2000. Below the Approval Limit section is a Level field, which is currently empty. At the buttom of the dialog box, there are two buttons: a Cancel button on the left and a Save button on the right.

  12. Select Save to enable these changes.

    A user interface dialog box titled New Cost Object Approver. The dialog box contains several fields for setting up a new approver. The first is labeled Group and is an uneditable field displaying Global-Project 3. Below that is the Approver field, populated with Arranda, Jack. The next section is labeled Approval Limit and contains two fields: Currency which is set to US Dollar from a dropdown menu and Amount, which is a text field displaying the value 2000. Below the Approval Limit section is a Level field, which is currently empty. At the buttom of the dialog box, there are two buttons: a Cancel button on the left and a Save button on the right. The Save button is highlighted in yellow.

  13. Repeat steps 8–12 to set the appropriate approval limits for each Approver.

Result

User's Experience

The User will see a new status in their list of expense reports. The status Pending Cost Object Approval appears when the report is in the cost object approval step. The name of the specific Approver does not appear. The user can see the detailed information by opening the report and viewing the Approval Flow page.

This transparency helps users stay informed about where their reports are in the workflow.

Approver's Experience

Approvers also benefit from a streamlined experience, with clear indicators showing which cost objects require attention. They are responsible for ensuring expenses align with organizational policies and budget constraints.

Approvers can also benefit from features like parallel processing, where multiple cost centers review the expense report simultaneously, significantly reducing approval times.

A cost object icon appears next to the transactions needing review and approval. The entire report is displayed; however, the Approver must review the entries with the icon. The remaining entries appear for information only.

These features collectively enhance the Approver's experience, making the approval workflow more effective and less time-consuming.

Processor's Experience

Processors can see individual Approvers, and track the progress of cost objects through different approval steps.

While the cost objects are in the cost object workflow step, the processor can only take the report within the workflow step to approve "as is" or return it to the Employee. Once the cost object workflow is completed, processors can view the final approver and expand each cost object to see detailed information about its approval path.

This comprehensive view allows processors to ensure that all necessary approvals have been obtained and to address any possible exceptions. Processors can effectively manage and streamline the approval process by understanding their role and using the available tools.

Log in to track your progress & complete quizzes

Learning

SAP FacebookSAP YoutubeSAP LinkedIn