General Ledger | Creating Journal Approval Rules

General Ledger | Creating Journal Approval Rules


[music] Hello my name is Barbara. In this tutorial I’ll show you how to create journal approval rules that either automatically approve a journal batch, or that route the batch for approval based on the ledger and journal amounts. In this example, I’m going to create approval rules for the Vision Operations USA ledger. If the largest journal amount in a journal batch is 500 or less, the batch doesn’t require approval or it’s automatically approved. When the largest journal amount in a journal batch is more than 500, and less than 10,000, the batch requires one level of supervisory approval. Finally, when the largest journal amount is 10,000 or more, two levels of supervisory approval are required. Let’s begin by navigating to the Business Process Management, or BPM worklist application. This application provides the interface for creating journal approval rules. I can open the application from Notifications. The worklist application opens in a new window. I have admin access, so I can manage the journal approval rules. Now let’s go the page that has the approval task configurations for Financials . . . and select the journal approvals task. Since I’m going to configure new rules, I need to be in Edit mode. The Assignees page shows the participant tree. A participant is a user or set of users in the approval assignment and routing definition. The journal approval task has 17 predefined participants. I would typically use only 1 or 2 participants, but have the flexibility to meet more complex approval requirements. Each participant is associated with one rule set, and a rule set can have one or more approval rules. I’m going to create the three rules using the Supervisory Journal Approver participant, so let’s open that rule set. Let’s first create the rule that requires one level of supervisory approval. Each rule defines the conditions for when the journal batch should be approved and by whom. The IF component evaluates the journal based on batch, journal, or journal line-level attributes. The THEN component determines who the approval should be routed to. For this rule, the first condition is going to check for the name of the ledger. The ledger name attribute can be found under the Maximum Amount Journal object. The Name attribute represents the ledger name. The first condition uses the “is” operator and compares the value on the left with the value on the right. In this case, checking for the ledger called Vision Operations USA. Now let’s add the second condition to check for the largest journal amount. I create this second condition by adding a simple test. This attribute stores the maximum accounted credit amount across all journals in the batch. For this condition, I have to change the operator to “between”. Now let’s enter the lower and upper amount limits. I’m finished with the second condition. The next step is to configure the action to send the journal batch for one level of supervisory approval. I can set this up using the Supervisory list builder. This list builder generates the list of approvers by moving up the supervisory hierarchy that’s set up in the HR application. I have to specify the number of approvers, the first approver, and the highest possible approver. To route the journal batch for one level of supervisory approval, I enter 1 for the number of levels. For this rule, the starting participant, or first approver, is going to be the manager of the person who submits the journal batch for approval. The top participant is the last user in the approval hierarchy. The list builder continues to add users to the approvers list from the supervisory hierarchy of the first approver, until the number of levels is met, or the top participant is reached. I’ll enter the login name of the top participant. Let’s save the rule. Let’s move on to the second rule. For that same ledger, if the largest journal amount is 10,000 or more, two levels of supervisory approval are required. To do this quickly, I can copy the rule I just created. Now I’m going to name the rule. The first condition stays the same. For the second condition, I just need to change the operator to “same or more than” and the amount to 10,000. Finally, I need to change the number of approval levels. We’re finished with the second rule. Finally, I need to create the rule that automatically approves journal batches that are 500 dollars or less for the Vision Operations ledger. This rule must also ensure that journal batches for non-Vision Operations ledgers are automatically approved as well. This is a catch-all rule. It’s very important that the rules in a rule set cover all conditions and are collectively exhaustive. Otherwise, you might run into errors. Once again, I start by copying one of the rules I just created. Let’s name the rule. First, I’m going to create a condition for journals 500 dollars or less in the Vision Operations USA ledger. I can do that by grouping these two conditions together. Notice how both conditions are now enclosed by a set of parentheses. Let’s change the operator of the amount condition. Now, I’m going to add another condition to this rule to cover all of the other batches that don’t have journals for the Vision Operations USA ledger. Since this new condition is mutually exclusive to the grouped conditions, I’m going to change this connector to “or”. Now I specify that the ledger name isn’t Vision Operations USA. Let’s set up the automatic approval. The Supervisory List builder has two parameters that override the supervisory approval and return a preconfigured approval action. Let’s enable the automatic action and set the action to approve. We’ve now defined three rules that meet the business requirements and that are collectively exhaustive. All journal batches satisfy the conditions in at least one of the three rules and will be routed for approval accordingly. If a journal batch does not satisfy the conditions in at least one rule within a rule set, the rule evaluation process would fail with errors. Now that the rules are created, let’s deploy them so they can be used. After journal approval is enabled, journal batches being posted will now be submitted for approval based on these rules. Thank you. [music]

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