By Brett Driscoll
Approval Models relate to the different options available to trigger workflow for an Approver, Supervisor or Reviewer.
There are these basic models available:
• Line Manager Supervisor – in every User’s profile is a default Supervisor.
In the absence of any other rule, this will be the default Supervisor.
• Workflow Approval Routing – the relationship between a specified Account code and an Approver.
This is typically a Cost Centre approver or a Project Manager approver.
• Business Function Approval Routing – as for Workflow Approval Routing but an added Business Workflow function such as Travel versus Purchasing.
• Delegation Relationships – the relationship between a Supervisor’s Position number and the up-line Manager’s position number for secondary approval.
Project Hierarchy Escalation – a relationship between the hierarchy of a Project Costing structure and various levels in the organisation.
Plus a number of Business Rules targeted at limiting inappropriate processing in respect to Conflict of Interest and Duplication:
• Authority Submission – a Business Rule that prevents an authorised Accountholder Delegate from submitting an Expense – they may only save and the owner must review and submit.
• Supervisor Authority Assignment – a User may only delegate their Supervisory authority assignment to another User with Supervisor security.
• Supervisor Authority Peer Assignment – a User may only delegate their Supervisory authority assignment to another User with a Position grade equal to or greater than their grade.
• Duplication Authority – Where the Supervisor and second level approver is the same User, the expense skips the first level approval.
Other than the simple Line Manager model (always the default Supervisor in the absence of any other rule), the configuration of these Approval relationships can become quite complex.
There are other ProMaster processes to consider in respect to reference data and HR data sources. This document will explore all of these models and explain the criteria to make them operational.
What makes these Approval Models such good sense?
Approval Hierarchies driven by HR Systems. The relationship between employees and their Managers, be they Line, Functional or Project managers, provides the framework for financial delegations, policy structure and sound business management.
Audit and Control. Alignment between ProMaster and the master systems within the organisation provides synergy and compliance across sub-systems. There is an underlying knowledge of the delegation models and that they are maintained and applied.
Rules based Workflow. With agreement on the correct approval model, the intimate detail of profile data is not needed providing the master reference is maintained. Upon this information rational workflow and rules based review and approvals proceeds.
Changed Delegations and Positions. If reflected in ProMaster from the master reference / HR Systems, the changes that occur on a daily basis such as temporary assignments, delegation thresholds and changes in hierarchical management structures such as Project management models become reliable and accurate reflections of the business.
What is Required?
Analysis. It is essential that the approval and delegation models of the organisation are understood. The approval and review requirements may be quite simple, and likewise require only simple approval models.
Likewise they may be complex, driven through position number relationships, hierarchical project models or multiple levels of review.
Decide on the Model. Having analysed the business requirements, select the Approval model that is applicable to the business.
Identify Master References. The “Source of Truth” of master reference data must be assessed, defined and clearly understood. The frequency of updates must reflect the volatility of the business.
Implement. The underlying references and profiling is put into place and rules are enabled to initiate the selected model.
Maintain. Ongoing and frequent updates must be applied to ensure integrity, reliability and trust.
Approval Models Overviews:
Line Manager Supervisor
The most common and the simplest method of approval workflow is the direct relationship between a User and their Manager.
To be linked as a Supervisor, a User Profile for the Supervisor must have the Supervisor security allocated. With this security allocated, the list of Users with this level of security will be available in a Supervisor Search panel for point and click assignment.
Workflow Approval Routing
Workflow Approval Routing is the routing of an approval to the Supervisor associated with a specified Cost Code.
By specifying the GL Segment and code, a link to a Supervisor can be made.
Where a Cost Centre was changed from the default value, the owner of the Cost Centre is able to approve expenses first hand.
Business Functional Approval Routing
Business Functional Approval Routing is the routing of an approval to the Supervisor associated with a specified Cost Code, for a specific Business function.
Like Approval Routing, these are typically to differentiate between Travel (Domestic and International) and Purchasing. The values for these are “P” for purchasing, “I” for international travel and “D” for domestic travel – hence the value being called a PID code.
Against each of these values will be the criteria triggering the correct selection of the Supervisor to route the expense to for the combination of the Business Function and the value of the GL Segment.
Delegation relationships
Primarily to support the approval of Expenses separately to Travel Plans, there are two tiers of approval that are configured in ProMaster. These are Delegations that function as a hierarchical relationship between an Approver and a Reviewer.
Typically:
First level approval is based on the Supervisor (SV) security role. This will be by routing based on the Supervisor associated with the GL Segment code in the Approval Routing, or Business Function Routing tables.
Second level approval or the reviewer, is based on the Delegation above the Approver.
The Reviewer receives the expense based on the relationship to the first level approver.
A position number is the unique HR entity. There may be only one ‘occupant’ of a position and the position description relates the occupant to the role, who becomes the approver.
Project Hierarchy relationships
Amongst the most complex models is a hierarchical relationship that automatically triggers escalation where a conflict of interest may arise.
Though not unique to Project models, the structure of a hierarchy of responsibility through a chart of accounts is uncommon outside project reporting.
The principle is simple; when costing to the lowest level of a hierarchy, the person with responsibility at that level approves the expense.
However, when costing at that level is incurred by the person with that responsibility, the approval must escalate to the next tier.
And likewise, if the person responsible for costing at the next tier costs to that level, the approval must escalate to the next level and so on.
Project Management relationships
Another complex model is a Project Management structure pivoted around a Work Breakdown Structure or WBS.
The principle is simple; a ranking of Project Management officers is applied when costing to the WBS seeking the lowest level to approve the expense.
Where this model differs from the Project Hierarchy model is in the number of tiers of escalation that may be theoretically unlimited.
A Project may have only one or two directly associated officers; however any of the levels of management above the Project Director may apply a cost to the WBS and the approval for that must escalate upwards.
Summary:
With the differences in each organisation, the delegation rules and empowerment applied to each Supervisor and Approver, there needs to be a range of options for approvals, escalations and cost management.
ProMaster provides a broad range of options that should suit every circumstance.