Oracle Fusion is no exception. The approval hierarchy process is essential to any operation. The approval hierarchy defines how a particular transaction is approved and ensures that the right people have reviewed it before proceeding.
Oracle Fusion has several different approval methods. Each one offers its unique advantages and features. This article will cover the oracle fusion approval methods approval hierachy.
What is Oracle Fusion Approval Hierarchy?
The order in which Oracle Fusion gives approvals is called the Approval Hierarchy. This is the process that routes transactions based on rules and criteria to various levels of support.
The approval hierarchy is a process that routes transactions to different levels of approval based on predefined rules and standards.
The hierarchy of approval defines the approval chain, which ensures that the correct people are approving the appropriate transactions at the proper time.
Approval Methods in Oracle Fusion
Oracle Fusion provides three distinct approval methods. Each has its own rules, criteria, and hierarchies. They are:
1. Hierarchy of Supervisors
Supervisor Hierarchy is an approval system that uses the supervisor of the employee. The approval chain starts with an employee’s immediate manager and moves to the highest-level managers.
The method works best in organizations with a clear hierarchy and where the employees can report directly to their superiors.
2. Hierarchy of Positions
Position Hierarchy is an approval system based on each employee’s job title.
The approval chain starts at the job title and moves to the highest manager level.
This is the best method for companies with multiple reporting lines and a matrix structure.
3. Hierarchy of Job Positions
Job Hierarchy is an approval system based on each employee’s job function.
This approval process starts at the employee’s job title and moves up through the hierarchy until it reaches the highest-level manager.
The flat-structured organization with equal reporting lines best fits this method.
How to Set Up oracle fusion approval methods approval hierachy
Oracle Fusion makes it easy to set up an approval hierarchy. These are the basics:
i) Define the Approval Process:
It would help if you first defined the approval processes you wish to automate. Oracle Fusion Approval Management can help you automate this process.
ii) Define the Approval Hierarchy:
The next step is to determine the hierarchy of approvals for your process. It is important to identify the approval sequence and criteria at each stage.
iii) Assign Approvers:
After the hierarchy has been defined, it is time to assign the approvers for each step in the sequence.
iv) Test and Deploy:
Lastly, test the process and make sure it works as you expect.
Defining Approval Rules and Criteria
A transaction must first meet predetermined rules and criteria. The rules and criteria to approve a transaction vary according to the approval method.
In the Supervisor Hierarchy method of approval, for example, defining the supervisor before a transaction can be approved is necessary.
The employee’s position in the Position Hierarchy must be determined before the transaction is approved.
Before a transaction can be approved, it is necessary to define the employee’s job role.
Approval Hierarchy in Action
Let’s look at an Oracle Fusion example to understand the approval hierarchy better.
1. Purchase Orders Created
A member of the purchasing department creates the purchase order. A purchase order will include the item or service, quantity, supplier, and price.
2. Definition of Approval Criteria and Rules
The criteria and rules for approval are determined by the method of approval. In the Supervisor Hierarchy approval method, for example, it is necessary to define the supervisor.
The employee’s position in the company must be specified when using the Position Hierarchy approval method. The employee’s role in the job hierarchy approval method must be clearly defined.
3. The Approval chain is initiated
The approval chain begins once the purchase order has been created and approval criteria and rules have been defined.
According to the approval hierarchy, the purchase order will be routed through the first-level approvers.
4. Approvals Obtained
Each level in the chain of approval reviews and approves the purchase order until the highest-ranking manager.
The purchase order is rejected by any of the levels in the approval chain.
5. Purchase Orders Approved
After each level has approved the approval order, it will be marked and ready for payment.
Benefits of Using oracle fusion approval methods approval hierachy
Oracle Fusion approval hierarchy has many advantages. These benefits include:
-> Streamlined Approval Workflows:
You can automate your approval process to reduce the time required for reviewing and approving requests.
-> Improved Compliance:
The approval hierarchy guarantees that requests are reviewed by the right personnel, which can help ensure that your organization complies with relevant regulations and policies.
-> Increased Visibility:
The approval hierarchy allows you to track requests and their status in real-time, improving transparency.
-> Reduced Errors and Delays:
Automating approval processes can help you reduce errors and delays caused by manual procedures.
How Does oracle fusion approval methods approval Hierarchy Work?
Oracle Fusion’s approval hierarchy is usually defined by rules determining what can be approved.
The rules are based on many factors, including the type of transaction and the amount involved. They can also be determined by the business unit or department responsible.
The approval process begins once these rules have been set. According to the hierarchy, the system routes a submitted transaction to the correct approver.
The transaction will move to the next hierarchy level if the person who approved it approves.
The employee will be notified if they refuse the transaction. They can then make necessary changes, resubmit the request or escalate it to the next hierarchy level.
The process is repeated until the decision has been made at the top of the hierarchy. The employee will be informed of the decision at that time.
Conclusion
Oracle Fusion’s approval hierarchy ensures that all transactions are reviewed by the right people and approved before processing.
Oracle Fusion provides three distinct approval methods. Each has its unique advantages and features.
Organizations can tailor the approval process by defining rules and criteria.
Oracle Fusion’s approval hierarchy can be used to streamline business operations, improve control, and manage processes better.
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FAQ’s
1. What is Oracle Fusion Technology?
Oracle Fusion is a cloud suite of software applications for enterprise resource planning and human capital management.
It also includes supply chain management tools (SCM) and CRM capabilities.
2. What is the approval hierarchy?
The approval hierarchy in Oracle Fusion is an order that defines the approval process for a particular transaction.
It ensures the right people are involved and approves the approval before it can continue.
3. What are the advantages of using approval hierarchy with Oracle Fusion?
Implementing an approval hierarchy within Oracle Fusion will ensure compliance, simplify operations, decrease errors, increase transparency, improve visibility, and control business processes.
4. How do you approve a request in Oracle Fusion using different methods?
In Oracle Fusion, there are three approval methods: Supervisor Hierarchy (also called Position Hierarchy), Job Hierarchy, and Job Hierarchy.
5. How can organizations modify the Oracle Fusion approval process?
Organizations can define approval criteria and rules based on specific requirements to customize their approval process.
6. Which requests are automated by Oracle Fusion using its approval methods and hierarchy?
Oracle Fusion’s approval hierarchy allows you to automate approval workflows across various business processes, such as expense reports, purchase orders, time cards, etc.
