Approval Rules

Approval process is a SAP CPQ functionality that enables administrator to force users to obey a set of rules when operating with theirs quotes. For instance, administrator can model the approval process so that he doesn't allow users to put the discount on the quote amount in excess of 10%. This menu section uses to set up approval process, as well as quote workflow. Approvals and workflow are two things that are quite connected and that depend on each other.

To fully understand the approval process described in this manual, one should first get familiar with following terms:

  • Approver
  • Submitter
  • Approval Rule (condition)


To set up an approval process, it is necessary to do the following:

  1. Set up individual users' Managing/ Ordering/ Approving parents on user administration page (not required)
  2. Set up any additional things that you might need in approval process (I.E. Set discounting rules if you wish to treat discounts in approval rules) (not required)
  3. Set up one or more Approval Rules
  4. Set up Workflow to treat Approval Rules.

Bellow are explained above mentioned approval process terms:

Approver |is a SAP CPQ user that is selected to be responsible for managing the approval status for a particular quote in approval process. Therefore, the approver usually gets to view/edit submitters' quotes. Think of the approver as of a „manager” whose job is to decide if a quote is „valid” or „invalid” in some way. The approver is the person that needs to review a quote submitted to him and to decide what to do with it. By workflow, it usually means that he can either „Approve” or „Reject” a quote, or in some cases, submit it for further approval – if he himself also violates some rules and therefore has not enough authority to resolve the approval. In that case, this approver also becomes a submitter to his approver. This multilevel approval process will be described later in this chapter in more detail.

One approval rule must have at least one approver, but it's not limited to that one only – it can have as many as needed. Since approvers are ordinary SAP CPQ users (with some more rights), it is important to select only active users as approvers. If an inactive user is set to be an approver to someone, quotes submitted for approval will be assigned to him(who can't log in) and sent quote will get stuck. This behavior is by design. It is possible to have an approval rule that defines user (I.e. 'John Smith') to be the approver. Now, when that user is deactivated , the approval rule must still apply, because users could violate rules and avoid approval process. If quotes are stuck in 'waiting for approval' status, please consult approval history and double check that you don't have an inactive user set as approver to some rule.

Submitter | is a SAP CPQ user that some particular approval rule applies to at that moment. If the approval rule is evaluated to „true” than this user can submit a quote for approval process, if that action is available in the workflow. The submitter is usually the quote owner, or a user that is currently operating on a particular quote, although, it is not always the case. In multilevel approval process, one user's approver can also be submitter if he violates some approve conditions himself. More on this will be explained later in this chapter.

apprulesfinal.jpg

Figure A - Approval Rules


Approval Rule (condition) | can be considered as condition that needs to be evaluated as „true” in order to get the approval process going. Rules administration is found under Workflow/Approval → Approval Rules menu item in administration. The page contains a table that is displaying a list of approval rules in system. Here user can edit/delete or add a new approval rule. It is important to know that every time a quote is loaded or reconfigured, or when quote prices are refreshed, all these rules get re-evaluated and checked if there are some of them that will have to be evaluated to TRUE. When this happens, the quote can go through approval process, if it is defined by workflow, which we will cover later in this chapter. Next we will explain procedure for editing an existing approval rule and explain it in more detail.

Clicking on the edit button to the left of the approval rule in the rules table, we get the following page:

ruleedit.jpg

Figure B - Approval Conditions Administration


As seen, user has to define first a name for this approval rule (condition), and intuitive description for it. Next step is defining which users are affected by this rule. It is possible to choose particular user (employee), user group or user company. Of course, it is allow making a combination of these. Users selected here will be the actual submitters in the approval process.

1. User (if an approval rule exists for one user then only he can see these rules, all other rules are invalid for him)
2. User Group (if an approval rule exists for a user group then all users within the user group are subjected to the rule provided; those users do not have a direct rule associated with them)
3. Company (if an approval rule exists for a Company then all users within the Company are subjected to the rule provided; those users do not have a direct rule associated with them through user group or user)


After defining users who will be affected by this rule, second step is setting up the condition that will be evaluated by the system. This is the core thing in the approval process – condition can be very simple like („1” or „0”) or a complex SAP CPQ formula that will be evaluated to either „1” (true) or „0” (false). Condition field accepts all standard SAP CPQ parseable formulas, so this gives administrators great flexibility when creating approval rules. On Figure B, it can be seen that the entered condition is „<*GI(EXCEEDEDISCOUNT)*>”. It means that this rule checks the content of the „EXCEEDEDISCOUNT” global information variable and returns 1 or 0 accordingly. After setting up to whom this rule will apply, and condition that has to be met, consequently next thing to define is approve logic and approvers for this rule:

Approvers are being selected from the list of users labeled „Approvers:” on the page, as seen on the picture below:

approvers.jpg

Figure C - Approvers


All users from the system can be selected as approvers. One or more users can be flagged as approvers for the rule currently being edited.

Regardless of users in the system, the approvers list always offers three items that are not actual SAP CPQ users – the 'Managing parent', the 'Ordering parent' and the 'Approving parent'. These can be thought as some kind of context sensitive shortcuts: every SAP CPQ user can be assigned these three parents through standard user administration. Therefore, when selecting 'Managing parent' as an approver when editing an approval rule, approver will be different according to the user this rule applies to at the particular moment. For example, if 'Mike' and 'Joe' are selected users to whom this rule applies to, and as approvers are selected 'Managing/Ordering/Approving parent', the quote won't necessarily go to the same approver regardless of who submitted it for approval. In other words, if Mike and Joe have different Managing parent, than the quote will end up with different approving user, in regard of who submitted it. As with the Managing parent this also applies for Ordering parent and Approving parent.

So, every user selected from the list will be the approver for the particular rule, and will receive the quote to review it and decide how they will respond.

Approve logic is set up by choosing desired value from the approval requirements dropdown as shown in the picture:

approvelogicfinal.jpg

Figure D - Approval Requirements



Approve logic can be best explained through example: If there is a rule that defines more than one approver quote will end up being reviewed by more than one approver. Although every approver can Reject a quote, all the approvers must agree to Approve it in order for that quote to be returned to the owner as Approved. This is the default behavior, and it is an example of “AND” logic. To put it differently, one approver is enough to reject the quote, but all are required to approve it.

However the “OR” logic is somewhat different. The rejecting policy is the same: it is enough that one approver rejects the quote to have it returned to submitter as “Rejected”, but also, a single approver is enough to “Approve” the quote to have it returned as “Approved” to submitter, no matter how many approvers didn't respond to approval process on that quote. The „OR” logic is a good solution for handling employee vacations - having multiple approvers, among which anyone can approve a quote; so it is not stuck waiting for one of the approvers to approve it when all the others already did. Clearly, than the „AND” logic is kind of more restrictive than „OR” logic is.

After setting up all the above mentioned terms, approval rule has been successfully set up.

Custom Approver Selection Logic (Dynamic Approver)


You have an option to define a Custom Approver Selection Logic . This Logic is also reffered as a Dynamic Approver in SAP CPQ. Custom Approver Selection Logic will determine an approver at the time a particular approval rule is violated. Approver is determined depending on the expression that you defined through SAP CPQ Workflow/Approval setup.

This expression can take into account a various elements regarding users, customers, quote calculations… For example, you can write a formula that will determine an approver based on the country the customer is located in, or based on the total amount of the quote.

Follow these steps to define a Custom Approver Selection Logic:

  • Log into SAP CPQ and go to Setup
  • Click on Approval Rules under Workflow/Approval menu item
  • Click on Add New button to define a new Approval Rule (See figure A)



Figure A - List of approval rules



A page where you can define Aproval Rules, Conditions and Dynamic Approver is displayed. At the bottom of the page you will find a part where you can define all elements to properly set a Custom Approver Selection Logic. (See figure B)

  • Click on Add New button to define a new custom approver selection logic.

Figure B – Dynamic Approver definition



Enter a name and expression in the respective fields and select an appropriate value of the radio button. (See figure C) All fields are required and explained below.

Figure C – NEW Custom Approver Selection Logic



Fields that should be entered are:

  • Name - You decide which name fits the best. Use descriptive name that explains what criteria is used in the expression to define an approver.
  • Expression - A result of evaluating the Expression that you input in this field should be Name, Email or Username of SAP CPQ user that could be slected as dynamic approver. You can find a Name in the list of users under Setup→Users item menu.
  • Result returned by expression This radio button is used to define what information, the previously entered expression should return after being evaluated. If you want your expression to return Name of the user, you must pick a name option under this radio button. Similar applies for the other two options (Email and Username).



When you save a newly created Custom Approver Selection Logic, it is automaticaly added to the list of selected Approvers. (See figure E)

Figure E – New Custom Approver Selection Logic added to the Selected Approver list



Explanation of the example

In this example we will create an dynamic approver named Regional Approver.

Expression:

[IF]([EQ](<* CustomerTerritory *>,USA)){usa_approver@company.com}{eur_approver@company.com}[ENDIF]

is used to determine the email of the approver based on the Customer Territory. Once the expression returns an email of the approver, SAP CPQ will locate a user with that email and define it as a approver for the particular rule you violated in your quote.

In this example, if you work on your quote, and you choose a customer that has territory set to „USA“, your approver will be a user with the email usa_approver@company.com. You will find the name of this user in the list of Approval Rules below your quote. (See figure F)

Figure f – New Custom Approver Selection Logic added to the Selected Approver list



You are able to edit a Custom Approver Selection Logic. Whatever changes you make will be valid for all approval rules that use this dynamic approver. You can also use any Custom Approver Selection Logic defined by other users.

You are able to delete a Custom Approver Selection Logic but only if it isn’t part of some other rules. If you try to delete Custom Approver Selection Logic that is in use, you will be informed with the error message and the list of rules where this Custom Approver Selection Logic is used.

When you are working on the quote and a rule is triggered, you will be informed that the quote must be approved by the approver that was selected based on the expression you entered while defining a Custom Approver Selection Logic.

If for some reason SAP CPQ was not able to locate the user that you were referencing in your expression, then the error “Approver couldn't be identified. Please contact your SAP CPQ Administrator” will be displayed in the quote. (See Figure G)

Figure G – Error message when SAP CPQ cannot identify user from the expression



SAP CPQ will not be able to locate the user if you typed a wrong identification field value (invalid email, invalid name or invalid username).

Delegation of approvals

Delegation of approval is designed for cases when a quote is sent to the SAP CPQ user for approval, but that user is absent or is not able to approve/reject the quote. If delegation of approval is enabled then any memeber of the team can review, approve or reject that quote as a delegated approver.

Delegation of approval can be enabled or disabled by selecting approval permissions for any or all of the following three relations:

  • Managing parent
  • Approve parent
  • Orderding parent


The Managing Parent, with the appropriate rights, can edit or delete their child users. They can also reassign quotes between their child users.
The Ordering Parent receives all orders placed by their child users for confirmation.
The Approve Parent receives quotes from the user that have been submitted for approval. Whether or not a user’s Approve Parent receives a quote, though, depends on how the rules are set up in Approval Rule administration. Each approval rule determines which user(s) will receive the quote for approval. The user’s ApprovalParent is one of these options.

Assigning approval permissions to any of these three relations means that you define a delegated approver. Delegated approver is allowed to approve quotes that are assigned to its' approval team.
The Approval team is comprised of SAP CPQ users that are the first level descendants of the delegated approver in approval hierarchy. Approval team members are also approvers for other SAP CPQ users. (See figure A) under the following example section.
Steps to enable delegation of approval Follow these steps in order to enable delegation of approval:

  • Log into SAP CPQ and go to Setup
  • Click on Approval Rules under Workflow/Approval menu item


The “Delegation of Approvals” table is used to define a delegated approver and control permissions for it. This table contains three different SAP CPQ user approval relations.

Figure A: Define a delegated approval


You can delegate “approve/reject” permissions for any of the relation that it is approving or rejecting quotes. In this example, approve parent has a permission to approve and reject quotes for its' approval team.

To summarize - when a user A request approval from its' approval parent B, then the user C which is set as approval parent for user B and it is defined as a delegated approver can approve quotes that are in “Waiting For Approval” queue of the user B.

Check the example below for more clarification.

Example Let’s assume that we have 5 users with their approval relations as depicted in the figure B

doa_relations_example.jpg

Figure B - Delegation of approval users hierarchy



User Kyle creates a quote which violates a previously defined approval rule. User Kate is defined as approval parent for Kyle. Kyle requests approval from Kate and now Kate has a Kyle’s quote in approval queue. (See figure C)

Figure C - Kate’s Waiting for Approval queue


If Kate is on vacation or for some reason is not able to log into SAP CPQ and approve the quote, then Mike can complete the approval. Mike is selected as approval parent for Kate and approval parent relation is selected to allow delegation of approval.

Once Kyle has sent the quote for approval, he is able to see the list of alternative approvers by selecting approval history from the dropdown in the list of quotes. (See figure D and figure E)

Figure D - Kyle’s list of quotes


Figure E - Approval history of Kyle’s quote #01450002



Clicking on the button “View alternative approvers“ a list will be displayed as pop up. (See figure F).

Figure F - List of approvers



Now, under the tab “Waiting for approval”, Mike sees a list of quotes that are directly sent to him for approval and list of quotes that his team can approve. Note that Mike is approval parent for Kate and Jsmith as well, so he will see quotes that are assigned for approval to Kate and Jsmith (column Responsible Approver). (See figure G)

Figure G - Mike’s Waiting for Approval queue



Mike clicks on Approvals action for the particular quote. Approvals page is displayed and Mike is able to approve or reject the quote. (See figure H)

Figure H - Approval page for Mike
You are here: SAP Sales Cloud CPQ Online HelpAdmin Page HelpWorkflow-ApprovalsApproval Rules