4 Replies Latest reply on May 29, 2013 1:53 PM by Amit Gupta

    Requisition Change Orders

    Bill Bilow Novice

      When a P.O.'s approved funding level has been depleted by invoice payments, a business user will submit a change order to the original requisition.  This change order flows through the approval process using the original requisition amount plus the amount of the change.  For example, if the original P.O. was approved for $40,000 and a change order was submitted for an additional $25,000, the approval flow will be based on a total spend amount of $65,000, which moves into different approval tier than either the $40k or $25k.

       

      How do others handle approvals with change orders?  Do you require approval for the full amount as described above, or only for the amount of change?

       

      Thanks in advance for your responses.

        • Re: Requisition Change Orders
          Ahmed Hassan Journeyman

          It needs approval for an aditional amount of change with strong justification for value optimizing .

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          • Re: Requisition Change Orders
            Scott Corbett Master

            I've seen it done both ways. We happen to re-run approvals on the full amount. This avoids people submitting reqs below a certain threshold and then change ordering below that threshold based on the delta (i.e. purposely avoiding certain fiscal approvals).

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            • Re: Requisition Change Orders
              Amit Gupta Master

              Hi Bill,

               

              The approval is generally on full amount probably because of below reasons

              1) Keep it bit easy for approvers otherwise they would have to be difficult to identify whether they are approving whole order amount or it is just an additional amount. For instance, as in your example, original order is $40,000 which is already approved, now for approval of second version of the order, there might be chances that approver didn't noticed that the 25k is the additional amount and approve it assuming it's total order amount. Advisable is to go call approval of the whole order everytime.

              2) There might be other fields which are validated in the custom approval rules which might be based on commodity codes, amount etc. Hence they will also need to be taken care of whether they should be triggered only on additional amount or whole amount.

              Advisable is to validate whole order amount instead of only additional amount.

               

              Amit