Supplier-based approval—AP purchase invoices in Accounts Payable

Designate AP purchase invoice approvers for individual suppliers and streamline approval routing using supplier-based approval. You can assign AP purchase invoice approvers to some or all suppliers. Sage Intacct bypasses the supplier-based approval rule type for AP purchase invoices from suppliers who do not have a designated approver.

About supplier-based approval

To set up supplier-based approval, add the Supplier-based approval rule type to your AP purchase invoice approval policy in your Accounts Payable configuration. After you add the rule type, Intacct adds the AP purchase invoice approver field to the supplier record. You can then assign approvers to individual suppliers.

Assign AP purchase invoice approvers by editing supplier records directly or by updating supplier records using CSV import. The AP purchase invoice approver field is available for supplier import only when the Supplier-based Approval rule type is present in the AP purchase invoice approval policy.

How supplier-based approval works with other rule sets

When multiple rule types are present in your AP purchase invoice approval policy, Intacct executes them in the order that you list them.

AP purchase invoices are always routed normally for User Level and Value Approval rules. However, Supplier-based Approval interacts differently with Value Approval - Transaction Department, based on the AP purchase invoice that is submitted.

The following table shows that when both Supplier-based Approval and Value Approval - Transaction Department are present in the AP purchase invoice approval policy, the AP purchase invoice is routed using one rule type or the other, depending on whether an AP purchase invoice approver is designated on the associated supplier record. This is true regardless of how you order the rule sets in the approval policy.

Approval routing when supplier-based approval and departmental approval rules are present

Approval policy	Supplier record associated with the AP purchase invoice	Validation when you submit the AP purchase invoice	How the AP purchase invoice is routed
Supplier-based Approval Value Approval - Transaction Department	No designated AP purchase invoice approver	All lines must be coded to the same department	The AP purchase invoice is routed for department approval. Supplier-based approval is bypassed
Supplier-based Approval Value Approval - Transaction Department	AP purchase invoice approver designated	Lines can be coded to different departments	Routed for supplier-based approval. Departmental approval is bypassed.

Example of supplier-based approval combined with department approvals

Say that your organization regularly receives health care AP purchase invoices with line items that you frequently code for different departments in the company. The Human Resources (HR) manager needs to approve these AP purchase invoices and department managers do not. For all the other AP purchase invoices that you receive, you code line items with a single department in each AP purchase invoice. Department managers need to approve these AP purchase invoices, not the HR manager. Both types of AP purchase invoices are subject to value approval.

To manage this scenario, you can do the following:

1. Add three rule sets to your AP purchase invoice approval policy: Supplier-based Approval, Value Approval - Transaction Department, and Value Approval rule sets. Place them in the order that makes sense for your workflow. Configure the department and value approvals based on your needs.

2. Assign the HR manager as the AP purchase invoice approver for suppliers who generate health care AP purchase invoices that are coded across departments. Do not assign AP purchase invoice approvers for suppliers who submit other types of AP purchase invoices.

When you record AP purchase invoices from health care suppliers, you can assign line items to any department, as needed. When you submit the AP purchase invoice, Intacct recognizes that an AP purchase invoice approver was assigned to this supplier. The system bypasses department approval and routes the AP purchase invoice according to your rules for supplier-based approval and value approval.

When you submit AP purchase invoices from suppliers who do not have AP purchase invoice approvers, Intacct recognizes that these AP purchase invoices need to go through department approval and validates them to ensure that they’re coded to a single department. The system bypasses supplier-based approval and routes the AP purchase invoice according to your rules for department approval and value approval.

Who can you designate as the AP purchase invoice approver for a supplier?

You can designate either a user or a user group as an AP purchase invoice approver. If you select a user group, any user in the group can approve or decline an AP purchase invoice and only one is needed.

Users you designate must meet the following criteria:

• Be either a business or employee user

• Be subscribed to Accounts Payable and have the necessary Approve AP purchase invoices permissions

• Have no department or entity restrictions

Add the Supplier-based Approval rule type

1. At the top level, go to Accounts Payable > Setup > Configuration.
2. Under AP purchase invoice approval policies, select Manage.
3. In the Rule type column on an empty line, select Supplier-based Approval from the dropdown list.
4. Grab the reorder icon on the left of the line item and drag it up or down to position the rule in the list to position it.

   For example, if you want this rule type to be run first, drag the row to the first position in the list.

5. Select Save.

Assign AP purchase invoice approvers to suppliers

1. Go to Accounts Payable > All > Suppliers.

2. Find the supplier that you want to update.

   If you're having trouble finding the supplier, filter the list by supplier name.

   Records designated as Inactive do not appear in the list by default. To view these records, select Filters at the top of the list and select Remove next to the Status filter to remove it.

3. Select More actions > Edit at the end of the row.

4. Select the Additional information tab.
5. In the AP purchase invoice details section, select a user or user group from the AP purchase invoice approver list.

   If you do not see a user in the list, double-check to make sure that the user has the correct permissions and is unrestricted. If you're looking for a user group, remember that all members of the group must meet the same criteria as individual users to be selectable in the list.

6. Select Save or Submit.

   If you have supplier approval enabled, this change takes effect after the supplier update is approved.

1. Go to Accounts Payable > All > Suppliers.

2. Select Edit next to the supplier you want to update.
3. Select the Additional information tab.

4. In the AP purchase invoice details section, select a user or user group from the AP purchase invoice approver list.

   If you do not see a user in the list, double-check to make sure that the user has the correct permissions and is unrestricted. If you're looking for a user group, remember that all members of the group must meet the same criteria as individual users to be selectable in the list.

5. Select Save or Submit.

   If you have supplier approval enabled, this change takes effect after the supplier update is approved.

Remove the Supplier-based Approval

1. Go to Accounts Payable > Setup > Configuration.

2. Under AP purchase invoice approval policies, select Manage.
3. On the line containing the Vendor-based Approval rule type, select Delete (Trash can).
4. Select Save to close the approval policy.

The rule type is removed from the approval policy and the AP purchase invoice approval field no longer appears in the supplier record. If you later add supplier-based approval to your policy, Intacct restores your previous AP purchase invoice approver selections on supplier records.